Archipelago Holdings Appoints Former Fidelity Capital Markets COO Matthew Gelber Managing Director, Options

Archipelago Holdings Appoints Former Fidelity Capital Markets COO Matthew Gelber Managing Director, Options

- Gelber to Head Archipelago's Newly-Acquired Options Business -

CHICAGO, Jan. 7 /PRNewswire-FirstCall/ -- Archipelago Holdings, Inc., operator of the Archipelago Exchange(SM) (ArcaEx(R)), the world's first totally open, all-electronic stock exchange, today announced the appointment of former Fidelity Capital Markets Chief Operating Officer Matthew Gelber to the position of Managing Director. In Gelber's new role, he will be responsible for driving Archipelago's options business and will initially be charged with managing the integration of the newly acquired PCX's options exchange.

"We fully intend to make Archipelago the market of choice for options trading and believe Matt combines an understanding of the PCX, knowledge of how options trade and what clients want that will lead us there," said Jerry Putnam, Chief Executive Officer of Archipelago Holdings. "While integration of the Pacific Exchange is priority one for our options business, focusing on initiatives that will grow the options business is of equal importance. Matt will add expertise in both areas."

Gelber most recently served as Chief Operating Officer of Fidelity Capital Markets where his responsibilities included planning, organizing and executing operational plans and company strategy. He held various senior positions at Fidelity including Senior Vice President of Order Flow Management and Vice President, Manager, Principal Trader. Preceding his work at Fidelity, Gelber was also employed with Merrill Lynch Specialists, Inc. where he was an Assistant Vice President responsible for trading 85 listed securities. Gelber has also worked at Josephthal & Co., Inc and the Boston Stock Exchange.

Gelber has been actively involved with the Pacific Exchange, serving as Governor, PCX Inc., Board of Governors and Director, PCX Holdings Inc. and also as a member of several PCX advisory and market performance committees.

In his various roles at Fidelity and with the PCX, Gelber accumulated a wealth of expertise in the options industry by managing order flow, working with both institutional and retail investors and monitoring execution quality.

"Archipelago is as progressive an organization as there is within the financial services arena. They have consistently driven positive, investor-friendly change in the equities market. With their announced acquisition of the Pacific Exchange, Archipelago is well positioned to make a similar impact on the options marketplace. I am very excited to be joining such a forward-thinking company at a critical time in the evolution of the company and the markets," said Gelber.

Gelber holds an MBA from the Boston University School of Management and a bachelor's degree in government/economics from Skidmore College. He will be based in Archipelago's Chicago, Ill. offices.

About Archipelago

Archipelago Holdings operates The Archipelago Exchange(R) (ArcaEx(R)) the first totally open all- electronic stock exchange in the United States. ArcaEx trades all Nasdaq-listed equity securities and exchange listed equity securities, including those listed on the New York Stock Exchange(R), American Stock Exchange(R), and Pacific Exchange(R). In addition to offering core execution services, ArcaEx provides corporate clients with listing services and innovative data products. In 2004, Archipelago launched ArcaVision to provide corporate and trading clients with more transparent market data, analytical tools and access to market-wide and ArcaEx specific trading information. Archipelago Holdings completed its initial public offering in August 2004. For more information please visit http://www.archipelago.com/.

ArcaEx's, past transaction performance is not necessarily indicative of its future results. Periodically, ArcaEX's transaction performance will experience fluctuations due to unforeseen factors effecting trading activity, including seasonality, general economic, political and market conditions, unforeseen market closures or other disruptions in trading. A description of the factors that may influence ArcaEx's volume of securities transactions are identified in Archipelago's Prospectus, dated August 12, 2004.

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 Archipelago's Prospectus, dated August 12, 2004, and form 10-Q dated November 9, 2004, each of which are filed with the Securities and Exchange Commission, and available on Archipelago's website: http://www.archipelago.com/.

Archipelago Contact Names:
Margaret Nagle
312-442-7083



Source: Archipelago Holdings, Inc.

CONTACT: Margaret Nagle of Archipelago, +1-312-442-7083

Web site: http://www.archipelago.com/


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