CBOE News Release

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CBOE News ReleaseChicago Board Options Exchange

400 S. LaSalle StreetChicago, IL 60605

FOR IMMEDIATE RELEASE

CBOE S&P 500 PUTWRITE INDEX (PUT) WINS AWARD FOR MOSTINNOVATIVE BENCHMARK INDEX;

Fourth Award in Four Years At The Super Bowl of Indexing Conference

CHICAGO,December 4, 2007 - The Chicago Board Options Exchange (CBOE) announced today that itsCBOE S&P 500 PutWrite Index (ticker symbol PUT) won the award for the Most Innovative Benchmark

Index at the Twelfth Annual Super Bowl of Indexing Conference in Scottsdale, Arizona.

The Super Bowl of Indexing Conference is an annual conference developed by Information ManagementNetwork (IMN) and attended by more than 600 industry professionals and academics that seek in-depthinformation and analysis on a broad spectrum of financial instruments and concepts. The 2007 award for theCBOE S&P 500 PutWrite Index was one of only three 2007 product awards granted as part of the William F.Sharpe Indexing Achievement Awards. This is the fourth award that CBOE products have received during thefour years of awards at the Super Bowl of Indexing Conference. Past CBOE Innovation awards include: theCBOE S&P 500 BuyWrite Index (BXM)(2004), and both futures (2004) and options (2006) on the CBOEVolatility Index (VIX).

"During this decade, CBOE has pioneered the development of options-related benchmarks such as the CBOE

PutWrite and BuyWrite indexes, and has worked vigorously to promote and develop these emerging newasset classes. We are gratified that the hard work and investment in innovation made by CBOE is recognizedand held in such high regard by our peers. We thank Standard & Poor's for their partnership and continuedsupport, said CBOE Chairman and Chief Executive Officer, William J. Brodsky.

The PUT strategy is designed to sell a sequence of one-month, at-the-money, S&P 500 Index (SPX) putoptions and invest cash in one- and three-month Treasury Bill rates. The number of put options sold variesfrom month to month, but is limited so that the amount held in Treasury Bills can finance the maximumpossible loss from the final settlement of the SPX puts.

Key points about the CBOE S&P 500 PutWrite Index for the period from June 1, 1988 through November30, 2007:

- Higher Returns. The PUT Index had an annualized return of 12.5% compared to 11.7% for the S&P 500Total Return Index (SPTR).

- Lower Volatility. The standard deviation of returns of the PUT Index was about 40% less than that of theS&P 500 Index.

- Total Growth. The PUT Index was set to 100 at its base date of June 1, 1988, and it rose to 998.17 byNovember 30, 2007, an increase of 898%, compared to a 758% increase for the S&P 500 Total ReturnIndex over the same time period.

- more -


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In the worst-case scenario, the amount at risk for the PUT investor is limited to the amount that wasinvested. The number of put options sold increases with Treasury Bill rates and the price of the put, anddecreases with the strike price of the put.

CBOE calculates the PUT Index value at the end of each trading day and disseminate it on the CBOEwebsite and to options quote vendors. On any given date, the index represents the value of the initial $100invested in the PUT strategy at inception. At the close of every business date, the value of the PUT is equalto the value of the Treasury Bill account, less the mark-to-market value of the puts.

Historical values for the PUT are available dating back to June 1988 on the CBOE website. For more dataand information about the PutWrite Index please visit http://www.cboe.com/PUT.

CBOE, the largest U.S. options exchange and creator of listed options, is regulated by the Securities andExchange Commission (SEC). For additional information about the CBOE and its products, access the CBOEwebsite at www.cboe.com.

Contacts:Debbie Baratz Gary Compton(312) 786-7123 (312) [email protected] [email protected] and Chicago Board Options Exchange are registered trademarks of Chicago Board Options Exchange, Incorporated. SPXSM, BXMSM,PutWriteSMand PUTSMare service marks of CBOE. The methodologies of the CBOE BuyWrite Indexes and the PutWrite Index are owned by CBOE andmay be covered by one or more patents or pending patent applications. Standard & Poor's, S&P, and S&P 500 are registered trademarks of TheMcGraw-Hill Companies, Inc. and are licensed for use by CBOE. The CBOE S&P 500 PutWrite Index is designed to represent a proposed hypotheticalshort put strategy. Like many passive indexes, the PUT Index does not take into account significant factors such as transaction costs and taxes and,because of factors such as these, many or most investors should be expected to underperform passive indexes. In the construction of the hypotheticalPUT index, the SPX puts are assumed to be written at a certain price on the third Friday of the month. However, there is no guarantee that all investorswill be able to sell at this price, and investors attempting to replicate the PUT Index should discuss with their brokers possible timing and liquidity issues.Transaction costs for a put writing strategy such as the PUT could be significantly higher than transaction costs for a passive strategy of investing inTreasury Bills. Past performance does not guarantee future results. Super Bowl of Indexing Conference is a registered trademark of Information

Management Network.

This communication shall not constitute an offer to sell or the solicitation of an offer to buy any securities,nor shall there be any sale of securities in any state or jurisdiction in which an offer, solicitation or sale wouldbe unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction. Nooffering of securities shall be made except by means of a prospectus meeting the requirements of Section10 of the Securities Act of 1933, as amended.

In connection with the proposed restructuring transaction, CBOE Holdings, Inc. ("CBOE Holdings") has filedcertain relevant materials with the United States Securities and Exchange Commission (SEC), including aregistration statement on Form S-4. Members are encouraged to read the registration statement, includingthe proxy statement/prospectus that are a part of the registration statement, because it contains important

information about the proposed transaction.

Members are able to obtain a free copy of the proxy statement/prospectus, as well as the other filingscontaining information about CBOE Holdings and the Chicago Board Options Exchange, Incorporated("CBOE"), without charge, at the SEC's Web site, http://www.sec.gov/, and the companies' website,http://www.cboe.com/. In addition, CBOE members may obtain free copies of the proxystatement/prospectus and other documents filed by CBOE Holdings or the CBOE from CBOE Holdings bydirecting a request to the Office of the Secretary, CBOE Holdings, Inc., 400 South LaSalle Street, Chicago,Illinois 60605.

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http://www.cboe.com/PUThttp://www.cboe.com/PUThttp://www.cboe.com/mailto:[email protected]:[email protected]:[email protected]:[email protected]://www.cboe.com/http://www.cboe.com/PUT


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