Jerry Putnam, CEO of the Archipelago Exchange (ArcaEx) Testifies Before Senate

Committee About Recent Consolidations in the Marketplace and Regulation NMS

WASHINGTON, May 18 /PRNewswire-FirstCall/ -- In testimony before the U.S. Senate Committee on Banking, Housing and Urban Affairs, Jerry Putnam, Chairman and CEO of Archipelago Holdings, Inc. (PCX: AX), owner and operator of the Archipelago Exchange(SM) (ArcaEx(R)), the nation's first totally open, all- electronic stock exchange, testified about the importance of maintaining America's preeminent role in global financial markets.

In his written testimony, Putnam stated, "I believe the merger between the NYSE and Archipelago is a bold one, but 21st century competition requires boldness. The merger represents the best of all worlds: respecting and taking the best from the past while embracing the future. It marries the 24 entrepreneurs of the Buttonwood Era with the Archipelago entrepreneurs of the Information Society."

Putnam said that "the merger between the NYSE and Archipelago makes a whole lot of sense. Above all else, it makes sense because of our shared vision to maintain America's leading position in the global capital markets by creating a world-class exchange that provides U.S. and international consumers with first-rate execution, data and issuer services. In a world where both exchanges and financial products are fast converging, we believe the NYSE Group will be positioned to better serve all traders, investors and issuers by producing efficiencies, driving innovations, and creating new business and revenue opportunities, while maintaining the highest standards of integrity, transparency and disclosure."

Noting the global trend, Putnam stated, "America cannot be left behind in a world of tectonic shifts in financial markets. History so clearly, if cruelly, teaches us that societies, nations, governments and businesses that are unwilling to embrace and shape change are relegated, over time, to the failed forgotten."

"Today, to stay competitive and serve customer's demands, exchanges need to trade stocks, options and futures on a single platform and to do so with a global footprint. I believe the recently announced mergers of the NYSE- Archipelago and Nasdaq-Instinet fit squarely within the context of this competitive dynamic. It is my strong belief that both mergers are necessary for the United States to remain competitive in capital markets globally."

A copy of Jerry Putnam's complete written testimony is available at http://www.archipelago.com .

About Archipelago

Archipelago Holdings, Inc. (PCX: AX) owns and operates the Archipelago Exchange (ArcaEx). ArcaEx is the first totally open all-electronic stock market in the United States. Through its alliance with the Pacific Exchange, Inc., Archipelago operates ArcaEx as the exclusive equities trading facility of PCX Equities, Inc. Through ArcaEx, Archipelago customers can trade over 8,000 equity securities, including securities listed on the New York Stock Exchange(R), Nasdaq(R), American Stock Exchange(R) and Pacific Exchange(R). ArcaEx is regulated by the Pacific Exchange. The Archipelago ECN, a precursor to ArcaEx, was one of the four original ECNs, formed in December 1996 with Townsend Analytics.

Certain statements in this press release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on Archipelago's current expectations and involve risks and uncertainties that could cause Archipelago's actual results to differ materially from those set forth in the statements. There can be no assurance that such expectations will prove to be correct. Factors that could cause Archipelago's results to differ materially from current expectations include: general economic and business conditions, industry trends, competitive conditions, regulatory developments as well as other risks or factors identified in the Company's filings with the Securities Exchange Commission, including its Annual Report on Form 10-K for the fiscal year ended December 31, 2004 which is available on the Company's website at http://www.archipelago.com . You should not place undue reliance on forward- looking statements, which speak only as of the date of this press release. Except for any obligation to disclose material information under the Federal securities laws, Archipelago undertakes no obligation to release publicly any revisions to any forward-looking statements to reflect events or circumstances after the date of this press release.

SOURCE Archipelago Holdings, Inc.
05/18/2005
CONTACT: Margaret Nagle for Archipelago Holdings, Inc., +1-312-442-7083
Web site: http://www.archipelago.com
(AX)
CO: Archipelago Holdings, Inc.