IPO Profile

Archipelago Holdings
100 South Wacker Drive, Suite 2000, Chicago, Illinois 60606
Tel: 888-514-7284
Web: www.archipelago.com
Ticker: AX
Stock Exchange: Nasdaq
Shares Issued: 11,000,000.00
Price Offered: $11.50
Amount Raised: $126,500,000.00

Underwriters:
Goldman Sachs & Co.
J.P. Morgan
Banc of America Securities
Lehman Brothers
Merrill Lynch & Co.

Company Description:
We operate the Archipelago Exchange, or ArcaEx�, the first open all-electronic stock exchange in the United States. During 2003, our customers executed 295.1 million transactions in U.S. equity securities through ArcaEx, and we handled 24.2% of the total trading volume in Nasdaq-listed securities. We believe that we have promoted significant change and market innovation in the securities trading industry in recent years. We were the first to integrate fragmented over-the-counter, or OTC, market centers by routing our customers' orders to other market centers that displayed a better price than our trading system. We refer to this process as our "best execution" model. By bringing together buy orders and sell orders in this manner, we were able to increase the liquidity of our trading platform�i.e., the breadth and depth of buy orders and sell orders available to our customers. We have also introduced trading platforms and services designed to enhance the speed and quality of trade execution for our customers. Using advanced technology and an open architecture, our trading platforms provide our customers with fast electronic execution, transparency and open market access. In addition to our core execution services, we provide customers with market data on a real-time and on a summary basis and, as an exchange, we offer issuers a venue to list their equity securities and other structured products. We are committed to expanding and enhancing our suite of product and service offerings for both trading clientele and listed companies. Our revenues consist predominantly of transaction fees and market data fees generated by securities transactions executed on our trading platforms, which together represented 99.9% of our total revenues for the year ended December 31, 2003. During this period, we generated $458.5 million in total revenues.