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Island Futures, OCC Sign Clearinghouse Agreement

CHICAGO, February 21, 2002 - Island Futures Exchange, LLC (Island Futures), (a subsidiary of Island Holding Company, Inc. ("Island")), and The Options Clearing Corporation (OCC) announced today that they have signed an official clearinghouse agreement for security futures.

Island Futures recently received approval from the Commodities Futures Trading Commission as a designated contract market.

OCC is the largest clearinghouse in the world dealing in equity derivatives and the first to receive a 'AAA' credit rating from Standard & Poor's. Under the terms of the agreement, OCC will provide processing, settlement and guarantee services for Island Futures contracts. It may also optimize margin offsets between futures and options through its TIMSÔ portfolio risk management system. This reduces collateral requirements, allowing for more efficient use of a firm's capital.

"Island Futures represents yet another way that Island can deliver on its commitment to provide timely and innovative services to our subscribing broker-dealers and other sophisticated investors," said Matt Andresen, Island Futures President and CEO. "Our selection of OCC as Island Futures' clearinghouse allows us to work with one of the leaders in this field as we offer a new and important financial derivative product like security futures."

Wayne Luthringshausen, OCC Chairman and CEO, said, "We're pleased to expand our entry into the security futures marketplace with Island. We look forward to working with such a growing and dynamic organization."

About Island

Island is the technology leader in electronic marketplaces. Market professionals use Island technology to display and match limit orders in Nasdaq and Listed securities. Island ECN, an affiliate of Island Futures, trades more shares of Nasdaq securities than any other ECN, according to the latest NASD market analysis.* More information is available through its Web site at

* Source: Nasdaq Market Data;

About OCC

OCC, founded in 1973, is the largest clearing organization in the world for options and was the first clearing house to receive a 'AAA' credit rating from Standard & Poor's Corporation. Operating under the jurisdiction of the Securities and Exchange Commission and the Commodity Futures Trading Commission, OCC is jointly owned by the American Stock Exchange, Chicago Board Options Exchange, International Securities Exchange, Pacific Exchange and Philadelphia Stock Exchange. OCC is headquartered at One North Wacker Drive, Chicago, Ill. More information is available through its Web site at