News Release

Proxy Governance and Egan-Jones Recommend CBOT Merge with CME

Mon Jul 02 2007



CBOT/CME Merger Has Support from Four Leading Proxy Advisory Firms

CHICAGO, July 2, 2007 – CBOT Holdings, Inc., holding company for the Chicago Board of Trade (CBOT®) (NYSE: BOT), one of the leading global derivatives exchanges, today announced that two additional proxy advisory firms, Proxy Governance Inc. and Egan-Jones Proxy Services, have recommended that CBOT Holdings stockholders vote FOR the merger agreement with the Chicago Mercantile Exchange Holdings Inc. (NYSE: CME) at the Special Stockholders Meeting scheduled for July 9, 2007.  In making its recommendation, Proxy Governance concluded that:

“…given the complementary nature of CME’s and CBOT’s business models, processes and structures, this deal should provide significant cost savings and allow the combined company to take greater advantage of economies of scale, and mitigate any marginal value left on the table. In the long run, we believe CBOT will be better off with the merger consideration, given the strategic reasons for the transaction.”*

And Egan-Jones said the following:

“Based on our review of publicly available information on strategic, corporate governance, and financial aspects of the proposed transactions, Egan-Jones views the proposed merger agreement as a desirable approach in maximizing stockholder value. The strategic rationale for a combination with CME is stronger than that for one with ICE, the price offered by CME is strong, and the risk of successfully integrating with ICE is higher, making the value of a transaction with ICE based on its current stock price not necessarily indicative of future values, and giving in our view the edge to the transaction with CME.  After careful consideration, we believe that the proposed merger with CME is in the best interests of the Company and its stockholders and the advantages and opportunities outweigh the risks associated with the transaction”*

With these recommendations, all four of the leading proxy advisory firms, Institutional Shareholder Services (ISS), Glass Lewis, Proxy Governance and Egan-Jones, have now recommended that CBOT stockholders support the merger with CME.

The Board of Directors of CBOT Holdings unanimously recommends that stockholders vote “FOR the adoption of the agreement and plan of merger, and the Board of Directors of CBOT unanimously recommends that CBOT members vote “FOR the matters related to the merger as described in the joint proxy statement/prospectus and the supplement.

*Permission to use quotes neither sought nor received.



Maria C. Gemskie

Harlan Loeb
Financial Dynamics


Deborah Koopman

About the CBOT

As one of the leading global derivative exchanges, the Chicago Board of Trade provides a diverse mix of financial, equity and commodity futures and options-on-futures products.  Building on its 159-year history, the CBOT continues to advance into the future using the strength of deep liquidity, market integrity and member-trader expertise.  Using superior trading technology in both electronic and open-auction trading platforms, the CBOT provides premier customer service to risk managers and investors worldwide.  For more information, visit our website at

Important Merger Information

In connection with the proposed merger of CBOT Holdings, Inc. (“CBOT Holdings”) and Chicago Mercantile Exchange Holdings Inc. (“CME”), the parties have filed relevant materials with the Securities Exchange Commission (“SEC”), including a joint proxy statement/prospectus, as supplemented, regarding the proposed transaction. INVESTORS ARE URGED TO READ THE JOINT PROXY STATEMENT/PROSPECTUS REGARDING THE PROPOSED TRANSACTION, AS SUPPLEMENTED, BECAUSE IT CONTAINS IMPORTANT INFORMATION. Investors may obtain a free copy of the joint proxy statement/prospectus, as supplemented, as well as other filings containing information about CBOT Holdings and CME without charge, at the SEC’s website ( Copies of the joint proxy statement/prospectus, as supplemented, can also be obtained without charge by directing a request to CBOT Holdings, Inc., Attention: Investor Relations, at 141 West Jackson, Chicago, Illinois 60604 or calling (312) 435-3500.

CBOT Holdings and its directors and executive officers and other members of management and employees and other CBOT members may be deemed to be participants in the solicitation of proxies from CBOT Holdings stockholders in respect of the proposed transaction. Information regarding CBOT Holdings directors and executive officers is available in CBOT Holdings’ proxy statement for its 2007 annual meeting of stockholders, dated March 29, 2007. Additional information regarding the interests of such potential participants is included in the joint proxy statement/prospectus and the other relevant documents filed with the SEC. This document shall not constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. No offering of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the Securities Act of 1933, as amended.

Forward-Looking Statements

Certain statements in this document and its attachments, if any, may contain forward-looking information regarding CBOT Holdings, CME and the combined company after the completion of the transactions that are intended to be covered by the safe harbor for “forward-looking statements” provided by the Private Securities Litigation Reform Act of 1995. These statements include, but are not limited to, the benefits of the business combination transaction involving CBOT Holdings and CME including future financial and operating results, the combined company’s plans, objectives, expectations and intentions and other statements that are not historical facts. Such statements are based upon the current beliefs and expectations of the management of CBOT Holdings and CME and are subject to significant risks and uncertainties. Actual results may differ from those set forth in the forward-looking statements.

The following factors, among others, could cause actual results to differ from those set forth in the forward-looking statements: the failure of CBOT Holdings stockholders, CBOT members or CME stockholders to approve the transaction; the risk that the businesses will not be integrated successfully; the risk that the cost savings and any other synergies from the transaction may not be fully realized or may take longer to realize than expected; disruption from the transaction making it more difficult to maintain relationships with customers, employees or suppliers; competition and its effect on pricing, spending, third-party relationships and revenues; social and political conditions such as war, political unrest or terrorism; general economic conditions and normal business uncertainty. Additional risks and factors are identified in the joint proxy statement/prospectus, as supplemented, and CBOT Holdings’ other filings with the SEC, including its Report on Form 10-K for the fiscal year ending December 31, 2006 which are available on CBOT Holdings’ website at

You should not place undue reliance on forward-looking statements, which speak only as of the date of this document. Except for any obligation to disclose material information under the Federal securities laws, CBOT undertakes no obligation to release publicly any revisions to any forward-looking statements to reflect events or circumstances after the date of this document.

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