Nasdaq takes $25m charge from failed LSE bid

The Nasdaq Stock Market, Inc. ("NASDAQ" (Nasdaq:NDAQ) announced today its preliminary results for the first quarter 2007.

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For the quarter, NASDAQ expects net income to be $18.3 million, or $0.14 per diluted share. Operating income is expected to be $81.4 million and gross margin to be $192.1 million. Expected to be included in first quarter results are $24.9 million in acquisition related charges associated with NASDAQ's offer for the London Stock Exchange.

David Warren, NASDAQ's Chief Financial Officer commented, "We are extremely pleased with our first quarter operating results, especially with the increase in operating income. These results demonstrate our ability to successfully execute a plan to drive growth in our business."

Mr. Warren continued, "Based on the lapse of our offer for the London Stock Exchange in February 2007, it was determined that previously discussed costs incurred as a result of our bid be expensed in the first quarter 2007. These expenses will have the impact of reducing diluted earnings per share by $0.10 per share for the quarter."

As previously announced NASDAQ will release final first quarter 2007 results on Thursday, April 19, 2007.

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