News Release

CME Group Inc. Reports Strong Second-Quarter Revenues and Net Income

Tue Jul 22 2008

CHICAGO, July 22 /PRNewswire-FirstCall/ -- CME Group Inc. (NASDAQ: CME) today reported total revenues increased 71 percent to $563 million and net income increased 60 percent to $201 million for second-quarter 2008 compared with second-quarter 2007. Diluted earnings per share rose 3 percent to $3.67. The 2008 GAAP results reflect the operations of both Chicago Mercantile Exchange (CME) and Board of Trade of the City of Chicago (CBOT) and include: $6.7 million of CBOT merger-related operating expenses consisting of restructuring charges, integration and legal costs, and the acceleration of depreciation related to CBOT data centers; $13.2 million of costs related primarily to changes in the fair value of the company's FX hedge associated with its investment in BM&FBOVESPA SA; and a $3.6 million increase to non-operating expenses associated with the guarantee for holders of the Chicago Board Options Exchange (CBOE) exercise right privilege (ERP). The GAAP results for 2007 reflect the operations of CME only.

Pro forma non-GAAP diluted earnings per share in the second quarter were $3.93, a 12 percent increase versus second-quarter 2007. Pro forma results for second-quarter 2008 exclude the items listed above related to the CBOT merger, BM&FBOVESPA SA and the CBOE ERP guarantee. Pro forma non-GAAP revenues increased 10 percent to $563 million and net income increased 11 percent to $215 million for second-quarter 2008 compared with second-quarter 2007. The pro forma comparative results for 2007 reflect the operating results of both CME and CBOT as if they were combined. Pro forma measures do not replace and are not a substitute for GAAP financial results. They are provided to improve overall understanding of current financial performance and to provide a meaningful comparison with prior periods. A full reconciliation of these pro forma results is included in the attached tables.

"CME Group's product diversity helps customers mitigate risks across a wide array of asset classes, which is especially important in a challenging economy," said CME Group Executive Chairman Terry Duffy. "We have seen record quarterly volumes in our foreign exchange and commodities product lines, and view current market conditions for interest rates as a cyclical slowdown rather than a long-term issue. We have a number of new interest rate and treasury products in the pipeline -- including cleared swaps and inter-commodity spreads -- and continue to innovate within all our product lines as we extend distribution and enhance speed and functionality. We also continue to expand globally, and are on schedule to launch order routing from CME Group to BM&FBOVESPA, the largest exchange in Latin America, in September."

"The increased revenues and earnings posted by CME Group reflect the strength and stability of our business model and the continued success of our global growth plan," said CME Chief Executive Officer Craig Donohue. "We serve our expanding base of customers through the growth of new products that build on our core business and also through multiple non-core initiatives that strengthen our position in the exchange space. Going forward, for example, our proposed NYMEX transaction will enable us to diversify into energy and metals markets as well as expand into over-the-counter markets. In addition to new trading opportunities, our customers will benefit from the potential for significant cost savings and streamlined operations. We are confident in the value this transaction represents for shareholders of both companies and in the opportunity it provides for capitalizing on the global growth trend in derivatives."

All references to volume and rate per contract information in the text of this document exclude our non-traditional TRAKRS products, for which CME Group receives significantly lower clearing fees than other CME Group products, CME Group Auction Markets products, which were available to trade prior to July 2007, and Swapstream products.

  CME Group Inc. Second-Quarter 2008 Results

  Financial Highlights:

  GAAP

  ($s in millions,
   except per share)   Q2 FY08   Q2 FY07    Y/Y  YTD FY08  YTD FY07    Y/Y
  Revenues              $ 563     $ 329     71%   $1,188     $ 661     80%
  Expenses              $ 220     $ 137     61%    $ 446     $ 268     66%
  Operating Income      $ 343     $ 192     79%    $ 742     $ 393     89%
  Operating Margin %     61.0%     58.4%            62.5%     59.4%
  Net Income            $ 201     $ 126     60%    $ 485     $ 256     89%
  Diluted EPS          $ 3.67    $ 3.57      3%   $ 8.91    $ 7.26     23%



  Pro Forma Non-GAAP

  ($s in millions,
   except per share)   Q2 FY08   Q2 FY07    Y/Y  YTD FY08  YTD FY07    Y/Y
  Revenues              $ 563     $ 510     10%  $ 1,188   $ 1,008     18%
  Expenses              $ 213     $ 211      1%    $ 427     $ 420      2%
  Operating Income      $ 350     $ 299     17%    $ 761     $ 588     30%
  Operating Margin %     62.2%     58.7%            64.1%     58.3%
  Net Income            $ 215     $ 194     11%     $508     $ 379     34%
  Diluted EPS          $ 3.93    $ 3.52     12%   $ 9.34    $ 6.89     36%

NOTE: See the CME Group Inc. Reconciliation of Pro Forma Non-GAAP to GAAP Measures for detail related to the adjustments made to reach the pro forma results. The first quarter 2008 pro forma results are shown as excluding the impact of the company's FX hedge related to the BM&FBOVESPA SA investment.

Pro Forma Non-GAAP Second-Quarter 2008 Financial Results

Second-quarter 2008 volume averaged 11.1 million contracts per day, up 7 percent versus the same period in 2007. This volume growth resulted in $458 million in clearing and transaction fee revenue, an increase of 9 percent from $422 million in second-quarter 2007. The average rate per contract was $0.648 for the quarter, up one percent compared with the average rate per contract of $0.639 in second-quarter 2007.

CME Group processing services revenue for the combined company increased 32 percent to $19 million for second-quarter 2008 from $14 million for second-quarter 2007. NYMEX volume on CME Globex has increased every quarter since the NYMEX products began trading on CME Globex in June 2006. Additionally, second-quarter 2008 quotation data fees were up 23 percent to $60 million, in part due to the addition of Credit Market Analysis Limited (CMA) revenue.

Total pro forma operating expenses increased one percent to $213 million compared with the same period last year. In addition, second-quarter pro forma operating expenses were down slightly from the first quarter of this year despite the addition of expense related to CMA.

Second-quarter operating income on a pro forma basis was $350 million, an increase of 17 percent from $299 million for the year-ago period. The company's operating margin was 62 percent compared with 59 percent for the same period last year. Operating margin is defined as operating income as a percentage of total revenues.

Company Guidance

CME Group currently expects full-year 2008 pro forma operating expense to be closer to the bottom end of the previously stated guidance range of $855 to $870 million, excluding NYMEX.

CME Group will hold a conference call to discuss first-quarter results at 8:30 a.m. Eastern Time today. A live audio Webcast of the call will be available on the Investor Relations section of CME Group's Web site at http://www.cmegroup.com/. An archived recording will be available for up to two months after the call.

CME Group (http://www.cmegroup.com/) is the world's largest and most diverse derivatives exchange. Formed by the 2007 merger of Chicago Mercantile Exchange Holdings Inc. (CME) and CBOT Holdings, Inc. (CBOT), CME Group serves the risk management needs of customers around the globe. As an international marketplace, CME Group brings buyers and sellers together on the CME Globex electronic trading platform and on its trading floors. CME Group offers the widest range of benchmark products available across all major asset classes, including futures and options based on interest rates, equity indexes, foreign exchange, agricultural commodities, and alternative investment products such as weather and real estate. CME Group is traded on NASDAQ under the symbol "CME".

The Globe logo, CME, Chicago Mercantile Exchange, CME Group, Globex and E-mini, are trademarks of Chicago Mercantile Exchange Inc. CBOT and Chicago Board of Trade are trademarks of the Board of Trade of the City of Chicago, Inc. TRAKRS and Total Return Asset Contracts are trademarks of Merrill Lynch & Co., Inc. These trademarks are used herein under license. All other trademarks are the property of their respective owners. Further information about CME Group and its products can be found at http://www.cmegroup.com/.

Statements in this news release that are not historical facts are forward-looking statements. These statements are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or implied in any forward-looking statements. Among the factors that might affect our performance are: our ability to obtain the required approvals and to satisfy the closing conditions for our proposed merger with NYMEX Holdings, Inc. and our ability to realize the benefits and control the costs of the proposed transaction; our ability to successfully integrate the businesses of CME Holdings and CBOT Holdings, including the fact that such integration may be more difficult, time consuming or costly than expected and revenues following the merger may be lower than expected; increasing competition by foreign and domestic entities, including increased competition from new entrants into our markets and consolidation of existing entities; our ability to keep pace with rapid technological developments, including our ability to complete the development and implementation of the enhanced functionality required by our customers; our ability to continue introducing competitive new products and services on a timely, cost-effective basis, including through our electronic trading capabilities, and our ability to maintain the competitiveness of our existing products and services; our ability to adjust our fixed costs and expenses if our revenues decline; our ability to continue to generate revenues from our processing services; our ability to maintain existing customers and attract new ones; our ability to expand and offer our products in foreign jurisdictions; changes in domestic and foreign regulations; changes in government policy, including policies relating to common or directed clearing or as a result of a combination with the Securities and Exchange Commission and the Commodity Futures Trading Commission; the costs associated with protecting our intellectual property rights and our ability to operate our business without violating the intellectual property rights of others; our ability to generate revenue from our market data that may be reduced or eliminated by decreased demand or the growth of electronic trading; changes in our rate per contract due to shifts in the mix of the products traded, the trading venue and the mix of customers (whether the customer receives member or non-member fees or participates in one of our various incentive programs) and the impact of our tiered pricing structure; the ability of our financial safeguards package to adequately protect us from the credit risks of clearing members; the ability of our compliance and risk management methods to effectively monitor and manage our risks; changes in price levels and volatility in the derivatives markets and in underlying fixed income, equity, foreign exchange and commodities markets; economic, political, geopolitical and market conditions; natural disasters and other catastrophes, our ability to accommodate increases in trading volume and order transaction traffic without failure or degradation of performance of our systems; our ability to execute our growth strategy and maintain our growth effectively; our ability to manage the risks and control the costs associated with our acquisition, investment and alliance strategy; our ability to continue to generate funds and/or manage our indebtedness to allow us to continue to invest in our business; industry and customer consolidation; decreases in trading and clearing activity; the imposition of a transaction tax on futures and options on futures transactions; and the seasonality of the futures business. More detailed information about factors that may affect our performance may be found in our filings with the Securities and Exchange Commission, including our most recent Quarterly Report on Form 10-Q, which is available in the Investor Relations section of the CME Group Web site. We undertake no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise.

                       CME Group Inc. and Subsidiaries
                         Consolidated Balance Sheets
                           (dollars in thousands)

                                                 June 30,      December 31,
  ASSETS                                            2008              2007
  Current Assets:
       Cash and cash equivalents              $1,067,644          $845,312
       Collateral from securities
        lending                                        -         2,862,026
       Marketable securities, including
        pledged securities                       138,484           203,308
       Accounts receivable, net of
        allowance                                237,346           187,487
       Other current assets                       85,858            55,900
       Cash performance bonds and
        security deposits                        971,560           833,022
  Total current assets                         2,500,892         4,987,055
  Property, net of accumulated
   depreciation and amortization                 389,828           377,452
  Intangible assets - trading products         7,987,000         7,987,000
  Intangible assets - other, net of
   accumulated amortization                    1,804,467         1,796,789
  Goodwill                                     5,108,034         5,049,211
  Other assets                                   772,411           108,690
  Total Assets                               $18,562,632       $20,306,197

  LIABILITIES AND SHAREHOLDERS' EQUITY
  Current Liabilities:
       Accounts payable                          $63,198           $58,965
       Payable under securities
        lending agreements                             -         2,862,026
       Short-term debt                           164,938           164,435
       Other current liabilities                 147,074           157,615
       Cash performance bonds and
        security deposits                        971,560           833,022
  Total current liabilities                    1,346,770         4,076,063
  Deferred tax liabilities                     3,809,926         3,848,240
  Other liabilities                               77,567            76,257
  Total Liabilities                            5,234,263         8,000,560
  Shareholders' equity                        13,328,369        12,305,637
  Total Liabilities and
   Shareholders' Equity                      $18,562,632       $20,306,197



                       CME Group Inc. and Subsidiaries
                      Consolidated Statements of Income
                   (in thousands, except per share amounts)

                                      Quarter Ended      Six Months Ended
                                         June 30,             June 30,
                                      2008      2007      2008       2007
  Revenues
       Clearing and transaction
        fees                        $458,492  $252,722   $983,559  $510,963
       Quotation data fees            59,872    24,326    116,637    49,342
       Processing services            18,552    37,560     36,034    72,319
       Access and communication
        fees                          10,761     7,712     21,300    15,375
       Other                          15,511     6,689     30,768    13,341
       Total Revenues                563,188   329,009  1,188,298   661,340

  Expenses
       Compensation and benefits      73,588    56,729    146,877   113,129
       Communications                 12,850     8,850     27,622    17,929
       Technology support services    18,118     8,645     35,112    17,537
       Professional fees and
        outside services              16,074    12,110     30,825    21,282
       Amortization of purchased
        intangibles                   17,901       322     34,111       628
       Depreciation and
        amortization                  34,467    20,106     68,782    39,789
       Occupancy and building
        operations                    17,211     9,361     33,944    18,188
       Licensing and other fee
        agreements                    12,049     6,794     25,539    13,829
       Restructuring                     236         -      2,016         -
       Other                          17,234    13,848     41,349    26,178
       Total Expenses                219,728   136,765    446,177   268,489

  Operating Income                   343,460   192,244    742,121   392,851

  Non-Operating Income and Expense
       Investment income              12,049    19,395     23,423    36,700
       Gains (losses) on derivative
        investments                  (13,065)        -    (15,262)        -
       Securities lending interest
        income                             -    35,520     23,644    68,410
       Securities lending interest
        expense                            -   (34,331)   (18,219)  (66,756)
       Interest expense               (1,240)      (24)    (3,344)      (24)
       Guarantee of exercise right
        privileges                    (3,624)        -      4,773         -
       Equity in losses of
        unconsolidated subsidiaries   (3,941)   (3,371)    (7,870)   (6,391)
       Other non-operating expense       (75)        -     (8,465)        -
       Total Non-Operating            (9,896)   17,189     (1,320)   31,939

  Income Before Income Taxes         333,564   209,433    740,801   424,790

  Income tax provision              (132,382)  (83,558)  (256,071) (168,887)
  Net Income                        $201,182  $125,875   $484,730  $255,903

  Earnings per Common Share:
       Basic                           $3.69     $3.61      $8.96     $7.34
       Diluted                         $3.67     $3.57      $8.91     $7.26

  Weighted Average Number of Common
   Shares:
       Basic                          54,500    34,882     54,125    34,867
       Diluted                        54,752    35,242     54,390    35,236



                       CME Group Inc. and Subsidiaries
             Pro Forma Non-GAAP Consolidated Statements of Income
                   (in thousands, except per share amounts)

                                     Quarter Ended       Six Months Ended
                                        June 30,             June 30,
                                     2008      2007      2008       2007
  Revenues
       Clearing and transaction
        fees                       $458,492  $422,276   $983,559   $832,170
       Quotation data fees           59,872    48,502    116,637     98,600
       Processing services           18,552    14,100     36,034     27,063
       Access and communication
        fees                         10,761     9,334     21,300     18,634
       Other                         15,511    15,761     30,768     31,778
       Total Revenues               563,188   509,973  1,188,298  1,008,245

  Expenses
       Compensation and benefits     73,588    76,319    146,877    154,415
       Communications                12,850    12,512     27,622     25,458
       Technology support services   18,118    16,340     35,112     33,137
       Professional fees and
        outside services             14,266    12,592     26,573     23,361
       Amortization of purchased
        intangibles                  17,901    17,114     34,111     34,239
       Depreciation and
        amortization                 30,296    31,957     60,611     63,100
       Occupancy and building
        operations                   17,211    14,162     33,944     28,182
       Licensing and other fee
        agreements                   12,049    10,030     25,539     20,433
       Other                         16,719    19,641     36,573     38,191
       Total Expenses               212,998   210,667    426,962    420,516

  Operating Income                  350,190   299,306    761,336    587,729

  Non-Operating Income and Expense
       Investment income             12,115    26,397     23,489     50,079
       Gains (losses) on
        derivative investments            -         -          -          -
       Securities lending interest
        income                            -    35,520     23,644     68,410
       Securities lending interest
        expense                           -   (34,331)   (18,219)   (66,756)
       Interest expense              (1,240)      (46)    (3,344)      (261)
       Equity in losses of
        unconsolidated
        subsidiaries                 (3,941)   (3,638)    (7,870)    (7,077)
       Total Non-Operating            6,934    23,902     17,700     44,395

  Income Before Income Taxes        357,124   323,208    779,036    632,124

  Income tax provision             (141,733) (129,283)  (271,238)  (252,849)
  Net Income                       $215,391  $193,925   $507,798   $379,275

  Earnings per Diluted Common
   Share                              $3.93     $3.52      $9.34      $6.89

  Weighted Average Number of
   Diluted Common Shares*            54,752    55,088     54,390     55,078

  Note:  Pro Forma Non-GAAP results exclude merger-related costs.  The pro
  forma results for 2007 reflect both the operating results for CME and CBOT
  as if they were combined.  See CME Group Inc. Reconciliation of GAAP to
  Pro Forma Non-GAAP Measures for detail on the adjustments made to reach
  the pro forma results.  The first quarter 2008 pro forma results are shown
  as excluding the impact of the company's FX hedge related to the
  BM&FBOVESPA SA investment.

  * Weighted average number of diluted common shares includes CBOT
    sharecount for the entire period reported.



                       CME Group Inc. and Subsidiaries
            Reconciliation of GAAP to Pro Forma Non-GAAP Measures
                                (in thousands)

                                   Quarter Ended        Six Months Ended
                                      June 30,              June 30,
                                   2008      2007       2008        2007
  GAAP Results
  Revenues                       $563,188  $329,009  $1,188,298    $661,340
  Expenses                        219,728   136,765     446,177     268,489
  Operating income                343,460   192,244     742,121     392,851

  Non-operating income and
   expense                         (9,896)   17,189      (1,320)     31,939
  Income before income taxes      333,564   209,433     740,801     424,790
  Income tax provision           (132,382)  (83,558)   (256,071)   (168,887)
       Net Income                $201,182  $125,875    $484,730    $255,903


  Pro Forma Adjustments
  Revenues:
  CBOT pre-merger revenue              $-  $204,424          $-    $392,161
  Common clearing service
   elimination (1)                      -   (23,460)          -     (45,256)
  Total Pro Forma Revenue
   Adjustment                           -   180,964           -     346,905

  Expenses:
  CBOT pre-merger expense               -   109,830           -     208,049
  Common clearing service
   elimination (1)                      -   (23,460)          -     (45,256)
  Amortization of intangibles
   (2)                                  -    16,357           -      32,714
  Other (3)                        (6,730)  (28,825)    (19,215)    (43,480)
  Total Pro Forma Expense
   Adjustment                      (6,730)   73,902     (19,215)    152,027

  Adjustment to operating income    6,730   107,062      19,215     194,878

  Non-operating income and
   expense:
  CBOT pre-merger non-operating
   income                               -     6,713           -      12,456
  ERP guarantee (4)                 3,624         -      (4,773)          -
  BM&F (5)                         13,206         -      23,793           -
  Total Pro Forma Non-Operating
       Income and Expense
        Adjustment                 16,830     6,713      19,020      12,456
  Adjustment to income before
   income taxes                    23,560   113,775      38,235     207,334
  Adjustment to income tax
   provision                       (9,351)  (45,725)    (15,167)    (83,962)
       Adjustment to net income   $14,209   $68,050     $23,068    $123,372


  Pro Forma Non-GAAP Results
  Revenues                       $563,188  $509,973  $1,188,298  $1,008,245
  Expenses                        212,998   210,667     426,962     420,516
  Operating income                350,910   299,306     761,336     587,729

  Non-operating income and
   expense                          6,934    23,902      17,700      44,395
  Income before income taxes      357,124   323,208     779,036     632,124
  Income tax provision(6)        (141,733) (129,283)   (271,238)   (252,849)
       Net Income                $215,391  $193,925    $507,798    $379,275

  Notes:
  (1)  Eliminate clearing services provided to CBOT prior to the merger.
  (2)  Add amortization of intangible assets recorded in purchase of CBOT.
  (3)  Reverse effect of restructuring, accelerated depreciation,
       integration and legal expenses related to the merger with CBOT.
       Also removes CBOT merger-related transaction costs that were expensed
       and transaction costs related to the acquisition of Credit Market
       Analysis Limited (CMA).
  (4)  Reverse impact of exercise right guarantee associated with
       CBOT merger.
  (5)  Transaction costs related to investment in BM&FBOVESPA SA including
       costs related to changes in the fair value of the company's FX hedge
       associated with that investment.
  (6)  First-quarter 2008 includes tax benefit of $38.6 million due to a
       change in Illinois state tax treatment for apportionment of revenues
       sourced within the state.



                              CME Group Inc.
                      Quarterly Operating Statistics
                 (Pro forma for periods prior to 4Q 2007)

                    2Q 2007    3Q 2007    4Q 2007    1Q 2008    2Q 2008
  Trading Days           64         63         64         61         64



                          Average Daily Volume (ADV)
       (in thousands, average daily volumes combined for entire period)

  Product Line                   2Q 2007  3Q 2007  4Q 2007  1Q 2008  2Q 2008
  Interest rates                  6,670    8,060    6,290    8,251    6,467
  Equity E-mini                   2,127    3,057    2,817    3,628    2,833
  Equity standard-size              180      202      166      201      161
  Foreign exchange                  527      635      561      640      665
  Commodities & alternative
   investments                      818      716      740      949      933
       Total                     10,322   12,670   10,574   13,669   11,060

  Venue
  Open outcry                     2,297    2,652    1,876    2,336    1,836
  Electronic
   (excluding TRAKRS)             7,838    9,806    8,528   11,097    9,054
  Privately negotiated              188      212      169      236      170
       Total                     10,322   12,670   10,574   13,669   11,060



                       Average Rate Per Contract (RPC)
    (in thousands, rate per contract generated from combined average daily
                          volumes for entire period)

  Product Line                   2Q 2007  3Q 2007  4Q 2007  1Q 2008  2Q 2008
  Interest rates                 $0.516   $0.519   $0.530   $0.505   $0.522
  Equity E-mini                   0.700    0.673    0.687    0.684    0.668
  Equity standard-size            1.334    1.451    1.427    1.506    1.453
  Foreign exchange                1.090    0.951    0.985    0.927    0.907
  Commodities & alternative
   investments                    1.034    1.032    1.074    1.119    1.134
       Average RPC (excluding
        TRAKRS)                  $0.639   $0.622   $0.648   $0.630   $0.648

  Venue
  Open outcry                    $0.492   $0.473   $0.517   $0.553   $0.572
  Electronic (excluding TRAKRS)   0.626    0.613    0.629    0.609    0.629
  Privately negotiated            2.948    2.878    3.057    2.345    2.427

  Note:  All volume and rate per contract data prior to 4Q 2007 is based
  upon pro forma results.  All data excludes our non-traditional TRAKRS
  products, for which CME Group receives significantly lower clearing fees
  than other CME Group products.  Additionally, all data excludes Swapstream
  products and CME Group Auction Markets products while the CME Group
  Auction Market products were available prior to July 2007.

  CME-E

SOURCE: CME Group Inc.

CONTACT: Media, Anita Liskey, +1-312-466-4613, or William Parke,
+1-312-930-3467, or Investors, John Peschier, +1-312-930-8491, all of CME
Group Inc., news@cmegroup.com

Web site: http://www.cme.com/

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