News Release

NYMEX Holdings Reports Record Second Quarter Operating Revenues

Thu Jul 31 2008

NEW YORK, July 31 /PRNewswire-FirstCall/ -- NYMEX Holdings, Inc. (NYSE: NMX), parent company of the New York Mercantile Exchange, Inc. (NYMEX), today reported that total operating revenues for the second quarter ended June 30, 2008 rose 29% to a record $210.8 million compared to $163.6 million for the second quarter 2007. Net income for the second quarter 2008 increased 126% to $94.3 million compared to $41.7 million for the second quarter 2007. Diluted earnings per share for the second quarter 2008 were $0.99, based on 94.9 million shares outstanding, compared to $0.44, based on 94.8 million shares outstanding, for the second quarter 2007.

The second quarter 2008 results include $1.7 million of merger- related expenses, of which approximately $1.0 million are considered non-deductible for income tax purposes and consist primarily of professional fees, incurred in connection with NYMEX's proposed merger with CME Group Inc. (CME). Included in the second quarter of 2008 is a one-time net gain on long term investments ("one time net gain") of $30.6 million, consisting of approximately $33.8 million investment gain on Montreal Exchange, and impairment loss of $3.2 million on its investment in Optionable Inc. In May 2008, Toronto Stock Exchange completed its merger with Montreal Exchange in which the Company received cash and shares of Toronto Stock Exchange. Also in the current quarter, the Company evaluated its investment in Optionable Inc. and determined that the remaining value has been impaired and thus recorded a pretax charge to earnings. Excluding these merger-related expenses as well as the one-time net gain, net income for the quarter ending June 30, 2008 was $78.6 million or $0.83 per diluted share compared to $56.4 million or $0.60 per diluted share for the second quarter of 2007, on a non-GAAP basis.

The Board of Directors approved a regular quarterly dividend of 10 cents per share to shareholders of record as of August 15, 2008, payable on September 15, 2008.

For the six months ended June 30, 2008, NYMEX reported record total operating revenues of $419.7 million, a 28% increase from $327.8 million for the first half of 2007. Net income rose 69% to $165.5 million, versus $98.0 million in the first half of 2007. Diluted earnings per share for the 2008 first half was $1.74 versus $1.03 per diluted share in the 2007 period, based on 95.0 million and 94.8 million shares outstanding, respectively. Excluding merger related expenses of $9.6 million, and the one-time net gain, net income increased 40% to $157.2 million compared to $112.6 million in the comparable period of 2007, and diluted earnings per share was $1.66 compared to $1.19, for the six months ended June 30, 2008 and 2007, respectively.

NYMEX Chairman Richard Schaeffer said, "We continue to see strong demand from market participants for credit risk mitigation, price discovery and risk management, which contributes to our strong volumes and continued growth. Our strong second quarter performance is the result of volume growth, strength in average rate per contract fees, and the discipline we are applying to managing our expenses. We are constantly working to improve our competitive position, through new product launches, The Green Exchange venture, and our initiative with LCH.Clearnet where we will offer the marketplace enhanced capital efficiencies, distribution and industry leading trading and clearing platforms."

Mr. Schaeffer continued, "The proposed combination between NYMEX and CME will allow us to take our business and growth to a much higher level, and create value for our customers, members and shareholders."

NYMEX President and Chief Executive Officer James E. Newsome stated, "The second quarter continued to show growth in trading and clearing volumes, as evidenced in our strong average daily volume as well as records in natural gas, crude oil and total electronic volume. We continue to make significant progress to our launch of our new and distinct slate of OTC and futures products for clearing through LCH.Clearnet. We are also excited by the addition of new founding members in The Green Exchange venture. Finally, our Dubai Mercantile Exchange joint venture continues to innovate and offer new products to better serve market participants in managing their risk. We are pleased with our consistent strong performance and look forward to expanding our leadership in providing risk management solutions to the marketplace."

Second Quarter Results

Clearing and transaction fees rose 31% for the second quarter 2008 to $180.4 million compared to $137.4 million for the year ago period. Market data fees increased 15% for the second quarter 2008, to $26.9 million versus $23.4 million for the second quarter 2007.

Average daily volume was 1.812 million contracts during the second quarter 2008, a 30% increase compared to 1.396 million for the second quarter of 2007. NYMEX electronic trading volume on CME Globex averaged 865,149 contracts per day and represented a 42% increase over second quarter 2007 electronic trading volume. NYMEX floor-traded energy futures and options averaged 221,868 contracts a day for the second quarter of 2008, versus 256,635 contracts per day for the same period of 2007. COMEX electronic trading volume on CME Globex averaged 172,450 contracts per day, an increase of 70% over second quarter 2007 electronic trading volume. COMEX metals open outcry average daily volume was 38,755 contracts for the second quarter of 2008, versus 41,559 contracts for the same period of 2007. Average daily volume on NYMEX ClearPort was 417,601 contracts in the second quarter of 2008, as compared to 308,627 contracts in the same period of 2007. The remaining average daily volume of 96,059 per day consisted of other transactions which includes position transfers and exchanges.

Total operating expenses for the second quarter of 2008 were $71.5 million. Excluding direct transaction costs of $26.9 million, and merger-related expenses of $1.7 million, total operating expenses were $42.9 million for the second quarter of 2008, compared to $41.8 million for the same period in 2007. Operating expenses for the second quarter of 2008 included $1.8 million of expense from the initiative with LCH.Clearnet, and $0.8 million from The Green Exchange venture.

Income before provision for income taxes was $170.2 million for the second quarter 2008, compared to $74.0 million for the second quarter 2007. Pre-tax margin, defined as income before provision for income taxes divided by operating revenues, investment income and interest income from securities lending (net of interest expense/fees from securities lending and direct transaction costs), was 91% in the second quarter 2008, compared to 51% in second quarter 2007. Excluding merger-related expenses and the one-time net gain, pre-tax margin was 75% for the second quarter of 2008, as compared to 68% for the second quarter of 2007.

Six Month Results

Clearing and transaction fees rose 30% for the six months ended June 30, 2008 to $359.5 million, compared to $275.6 million for the year ago period. Market data fees were $53.1 million for the six month period, versus $46.5 million for the six months of 2007, an increase of 14%.

Average daily volume for the first six months of 2008 was 1.841 million contracts, a 27% increase over the first six months of 2007, compared with 1.454 million for the year ago period. NYMEX electronic volume on CME Globex was an average of 840,338 contracts per day and represented a 39% increase over the six month period of 2007 electronic volume. NYMEX floor-traded energy futures and options averaged 229,200 contracts a day for the first six months of 2008. COMEX electronic volume on CME Globex averaged 188,285 contracts per day, an increase of 96% over the first six months of 2007 electronic volume. COMEX metals open outcry average daily volume was 43,183 contracts a day for the first half of 2008. Average daily volume on NYMEX ClearPort increased 29% in the first half of 2008 to 439,533 contracts, compared to 340,470 contracts in the comparable period of 2007. The remaining average daily volume of 100,226 trades per day consisted of other transactions which includes position transfers and exchanges.

Total operating expenses for the first half of 2008 were $147.5 million. Excluding direct transaction costs of $55.0 million, and merger-related expenses of $9.6 million, total operating expenses were $82.9 million for the first six months of 2008. This represents a 4% decrease from $86.2 million for the same period in 2007, driven primarily by the Company's cost cutting initiatives.

Income before provision for income taxes was $304.6 million for the first six months of 2008, compared to $173.7 million for the same period of 2007. Pretax margin, defined as income before provision for income taxes divided by operating revenues, investment income and interest income from securities lending (net of interest expense/fees from securities lending and direct transaction costs), was 81% in the first half of 2008 compared to 59% for the same period of 2007. Excluding the merger-related expenses and one-time net gain, pretax margin was 76% as compared to 68% for the first half of 2007.

Investor Conference Call / Webcast Details

NYMEX will hold a conference call to discuss 2008 second quarter results today, July 31, 2008 at 8:00 AM Eastern Time. Those wishing to participate in the conference call can dial (800) 798-2864 (U.S. and Canada) or (617) 614- 6206 (International), using the confirmation code 63226328. A live audio webcast of the call will also be available on the Investor Relations section of the NYMEX website at http://investor.nymex.com/. An archived version of the conference call will also be available within approximately 90 minutes of the conclusion of the call.

About NYMEX Holdings, Inc.

NYMEX Holdings, Inc. (NYSE: NMX) is the parent company of the New York Mercantile Exchange, Inc., the world's largest physical commodities exchange, offering futures and options trading in energy and metals contracts and clearing services for more than 400 off-exchange contracts. Through a hybrid model of open outcry floor trading and electronic trading on CME Globex® and NYMEX ClearPort®, NYMEX offers crude oil, petroleum products, natural gas, coal, electricity, gold, silver, copper, aluminum, platinum group metals, emissions, and soft commodities contracts for trading and clearing virtually 24 hours each day. Further information about NYMEX Holdings, Inc. and the New York Mercantile Exchange, Inc. is available on the NYMEX website at http://www.nymex.com/.

Forward Looking and Cautionary Statements

This press release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act, with respect to our future performance, operating results, strategy, and other future events. Such statements generally include words such as could, can, anticipate, believe, expect, seek, pursue, and similar words and terms, in connection with any discussion of future results. Forward-looking statements involve a number of assumptions, risks, and uncertainties, any of which may cause actual results to differ materially from the anticipated, estimated, or projected results referenced in forward-looking statements. In particular, the forward-looking statements of NYMEX Holdings, Inc., and its subsidiaries are subject to the following risks and uncertainties: the success and timing of new futures contracts and products; changes in political, economic, or industry conditions; the unfavorable resolution of material legal proceedings; the impact and timing of technological changes and the adequacy of intellectual property protection; the impact of legislative and regulatory actions, including without limitation, actions by the Commodity Futures Trading Commission; and terrorist activities and international hostilities, which may affect the general economy as well as oil and other commodity markets. We assume no obligation to update or supplement our forward-looking statements.

                             (Tables Follow)



                    NYMEX HOLDINGS, INC. AND SUBSIDIARIES
           CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
                    (in thousands, except for share data)

                               Three Months Ended        Six Months Ended
                                     June 30,                June 30,
  Operating Revenues             2008        2007        2008         2007
      Clearing and
       transaction fees       $180,400    $137,390    $359,451     $275,567
      Market data fees          26,913      23,363      53,126       46,500
      Other, net                 3,495       2,844       7,106        5,756
        Total operating
         revenues              210,808     163,597     419,683      327,823

  Operating Expenses
      Direct transaction
       costs                    26,886      24,318      54,969       48,420
      Salaries and employee
       benefits                 19,887      20,482      39,863       41,520
      Occupancy and
       equipment                 5,893       5,604      11,653       11,547
      Depreciation and
       amortization, net of
       deferred credit
       amortization              3,571       3,614       7,029        7,145
      General and
       administrative            4,583       4,945       9,204        9,642
      Professional services      5,079       3,922       8,205        8,108
      Telecommunications         1,428       1,417       2,678        2,840
      Marketing                  2,013       1,626       3,363        3,559
  (1) Other expenses             2,124         182      10,487        1,843
        Total operating
         expenses               71,464      66,110     147,451      134,624

      Operating income         139,344      97,487     272,232      193,199

  Non-Operating Income
   and Expenses
      Investment income          3,222       6,133       6,836       12,840
      Interest income from
       securities lending        4,829      31,087      12,597       60,493
      Interest expense/fees
       from securities
       lending                  (4,233)    (30,136)    (10,281)     (59,025)
      Interest expense          (1,587)     (1,612)     (3,173)      (3,224)
  (2) Gain (loss) from
       unconsolidated
       investments              28,616     (28,944)     26,406      (30,587)
        Total non-operating
         income and expenses    30,847     (23,472)     32,385      (19,503)

      Income before
       provision for income
       taxes                   170,191      74,015     304,617      173,696
      Provision for income
       taxes                    75,879      32,270     139,120       75,731

      Net income               $94,312     $41,745    $165,497      $97,965

  Earnings per Share
      Basic                      $0.99       $0.44       $1.75        $1.04
      Diluted                    $0.99       $0.44       $1.74        $1.03

  Weighted Average Number
   of Common Shares
   Outstanding
      Basic                 94,791,000  94,450,000  94,786,000   94,450,000
      Diluted               94,947,000  94,798,000  94,981,000   94,784,000

  (1) Included in other expenses during the three and six months ended June
      30, 2008 are $1.7 million and $9.6 million, respectively, of
      merger-related expenses incurred in connection with the proposed
      merger with CME Group Inc.

  (2) Included in gain (losses) from unconsolidated investments during the
      three and six months ended June 30, 2008 is a gain of $33.8 million
      related to the merger of Montreal Exchange and Toronto Stock Exchange,
      and the remaining loss of $3.2 of its investment in Optionable, Inc.,
      compared to the prior year periods which included an impairment loss
      in Optionable Inc. of $26.0 million.



                  NYMEX HOLDINGS, INC. AND SUBSIDIARIES
                  CONDENSED CONSOLIDATED BALANCE SHEETS
                              (in thousands)

                                               (Unaudited)
                                                 June 30,       December 31,
                         Assets                    2008            2007
  Cash and cash equivalents                       $2,411          $3,296
  Collateral from securities
   lending program                               560,653         842,444
  Marketable securities, at market
   value                                         633,202         461,142
  Clearing and transaction fees
   receivable, net of allowance for
   member credits                                 63,119          38,443
  Prepaid expenses                                 8,962           8,786
  Margin deposits and guaranty
   funds                                          70,516         170,192
  Other current assets                            32,290          34,097
      Total current assets                     1,371,153       1,558,400

  Property and equipment, net                    173,707         176,471
  Goodwill and indefinite-lived
   intangible asset                              307,125         307,125
  Long-term investments                          117,414         178,036
  Other assets                                     7,115           7,121
      Total assets                            $1,976,514      $2,227,153

           Liabilities and Stockholders' Equity
  Accounts payable and accrued liabilities       $18,188         $15,723
  Accrued salaries and related liabilities        13,155          17,107
  Payable under securities lending program       571,009         847,581
  Margin deposits and guaranty funds              70,516         170,192
  Income tax payable                               7,217           2,704
  Other current liabilities                       38,337          31,122
      Total current liabilities                  718,422       1,084,429

  Grant for building construction
   deferred credit                               102,949         104,021
  Long-term debt                                  77,464          77,464
  Retirement obligation                           11,884          12,038
  Other liabilities                               21,636          23,646
      Total liabilities                          932,355       1,301,598

      Total stockholders' equity               1,044,159         925,555
      Total liabilities and
        stockholders' equity                  $1,976,514      $2,227,153



                         Non-GAAP Reconciliation

  The Company evaluates its financial performance using various measures.
  One measure is to exclude one-time gains and losses from its results to
  arrive at a pro forma earnings per share amount.  Pro forma earnings per
  share is a non-GAAP (generally accepted accounting principles) performance
  measure, however, the Company believes that it is useful to assist
  investors in gaining an understanding of the trends and operating results
  of the Company's business.  Pro forma earnings per share should be viewed
  in addition to, and not in lieu of, the Company's reported results under
  U.S. GAAP.

  During the three and six months ended June 30, 2008, the Company recorded
  $1.7 million and $9.6 million, respectively, of merger-related expenses,
  of which approximately $7.7 million are considered non-deductible for
  income tax purposes.  These costs were incurred in connection with the
  Company's proposed merger with CME Group Inc. and are recorded in other
  expenses under the caption "Operating Expenses" on its consolidated
  statements of income.  In addition, during the three and six months ended
  June 30, 2008, the Company realized a net gain on its long-term
  investments of $30.6 million compared to the prior year periods which
  included an impairment loss of $26.0 million.  These gains and losses are
  recorded under the caption "Gain (loss) from Unconsolidated Investments"
  on its consolidated statements of income.  The following is a
  reconciliation of U.S. GAAP results to pro forma results for the periods
  presented:

                                  (in thousands, except share amounts)
                               Three Months Ended        Six Months Ended
                                      June 30,                June 30,
                                  2008        2007        2008        2007
  Net income                    $94,312     $41,745    $165,497     $97,965
    Add: Merger-related
     expenses                     1,666         -         9,591         -
    Less: Gain on long-
     term investment            (33,869)        -       (33,869)        -
    Add: Impairment loss
     on long-term investment      3,228      25,962       3,228      25,962
    Add: Income tax
     expense/(benefit) of
     merger-related expenses,
     gain and loss of long-
     term investments            13,278     (11,319)     12,758     (11,319)

  Pro forma net income          $78,615     $56,388    $157,205    $112,608

  Earnings per common share
   on net income:
    Basic                         $0.99       $0.44       $1.75       $1.04
    Diluted                       $0.99       $0.44       $1.74       $1.03

  Pro forma earnings per
   common share on pro forma
   net income:
    Pro forma basic               $0.83       $0.60       $1.66       $1.19
    Pro forma diluted             $0.83       $0.60       $1.66       $1.19

  Weighted average common
   shares outstanding:
    Basic                    94,791,000  94,450,000  94,786,000  94,450,000
    Diluted                  94,947,000  94,798,000  94,981,000  94,784,000



                     Q2 2008     Q1 2008    Q4 2007     Q3 2007    Q2 2007
  Trading Days            64          61         64          63         63


             Average Daily Volume (round turns, in thousands)

                     Q2 2008     Q1 2008     Q4 2007     Q3 2007     Q2 2007
  NYMEX Floor            222         237         229         229         257
  NYMEX Electronic       865         814         704         687         608

  COMEX Floor             39          48          42          36          42
  COMEX Electronic       172         205         147         114         101

  NYMEX ClearPort        418         463         310         351         309

  Other                   96         104         107          74          79
  Total                1,812       1,871       1,539       1,491       1,396


          Gross Clearing and Transaction Revenue (in thousands)

                     Q2 2008     Q1 2008     Q4 2007     Q3 2007     Q2 2007
  NYMEX Floor        $22,798     $23,040     $21,517     $20,824     $19,966
  NYMEX Electronic    72,198      65,695      54,243      54,285      50,520

  COMEX Floor          4,247       4,787       3,948       3,072       3,249
  COMEX Electronic    18,834      20,373      14,572      10,786       9,791

  NYMEX ClearPort     50,925      53,375      38,217      46,905      44,281

  Other               11,398      11,780      12,433       9,387       9,583
  Total             $180,400    $179,051    $144,930    $145,259    $137,390


                          Net Rates Per Contract

                     Q2 2008     Q1 2008     Q4 2007     Q3 2007     Q2 2007
  NYMEX Floor          $1.60       $1.59       $1.47       $1.45       $1.23
  NYMEX Electronic      1.03        1.05        0.92        0.97        1.02

  COMEX Floor           1.71        1.64        1.46        1.34        1.24
  COMEX Electronic      1.43        1.36        1.26        1.16        1.19

  NYMEX ClearPort       1.57        1.50        1.51        1.67        1.72

  Other                 1.85        1.85        1.81        2.02        1.92
  Total Net RPC         1.32        1.32        1.23        1.28        1.29
        Direct Cost     0.23        0.25        0.24        0.27        0.28
  Gross RPC            $1.56       $1.57       $1.47       $1.55       $1.56

        Note: any differences in above tables are due to rounding

SOURCE: NYMEX Holdings, Inc.

CONTACT: Investors, Keil Decker, +1-212-299-2209, Media, Anu Ahluwalia,
+1-212-299-2439, both of NYMEX Holdings, Inc.

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

Corporate Communications

+1 312 930 3434
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