These results are presented in accordance with U.S. Generally Accepted Accounting Principles (GAAP).

Second quarter 2006 results include the full quarter results from the operations of NYSE Arca (formerly known as the Archipelago Exchange, or ArcaEx, and the Pacific Exchange). The merger between NYSE, Inc. and Archipelago Holdings, Inc. closed on March 7, 2006. Fiscal 2005 results include only the operations of NYSE, Inc., the predecessor of NYSE Group.

Included in the second quarter results are $9.7 million in merger expenses and related exit costs consisting of severance costs ($5.8 million), legal, printing and accounting fees incurred in connection with the May 2006 selling shareholder offering of our common stock ($2.1 million), and other professional fees ($1.8 million).

On a non-GAAP basis, excluding these $9.7 million of expenses and exit costs directly attributable to the merger of the NYSE and Archipelago, the net income of NYSE Group for the three months ended June 30, 2006 was $66.9 million, or $0.42 per diluted share, a $14.2 million or 27% increase as compared to net income, on a non-GAAP basis, of $52.7 million, or $0.34 per diluted share, for the three months ended March 31, 2006. A full reconciliation of these non-GAAP results is included in the attached tables.

"NYSE Group's second quarter performance was strong, as the balance between revenue growth and cost management demonstrates," said Nelson Chai, Executive Vice President and Chief Financial Officer. "We remain focused on growing and delivering on our core business priorities. The strength of our transaction and listing businesses, the announcement of our plans to merge with Euronext N.V., and our new transaction pricing model reflect our commitment to these goals.

"Additionally, we continue to make significant progress on the NYSE-Archipelago merger integration initiative and with the approaching introduction of a number of new products and services in the coming months, NYSE Group is well positioned for future growth and substantial value creation for our shareholders. As we continue to meet our integration goals, we expect NYSE Group's results to reflect the realization of these efficiencies."Download the document now 48.8 kb (Adobe Acrobat Document)