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CBOE To Begin Disseminating Two New Indexes Based On The Dow Jones Industrial Average Today: CBOE DJIA Volatility Index and CBOE DJIA BuyWrite Index

Boca Raton, FL and Chicago, IL - March 18, 2005 - The Chicago Board Options Exchange (CBOE) announced that it will begin disseminating today two new indexes based on the Dow Jones Industrial Average (DJIA): the CBOE DJIA Volatility Index (ticker symbol: VXD) and the CBOE DJIA BuyWrite Index (ticker symbol: BXD). Both indexes are new benchmark indexes, created by CBOE under an agreement with Dow Jones & Company, Inc., and are based on prices of Options on the Dow (DJX), traded at CBOE.

The CBOE DJIA Volatility Index (VXD) is designed to reflect investors' consensus view of expected volatility over the next 30 days in the DJIA, and as such, can be used as a benchmark of investor sentiment. VXD tracks the volatility of the widely followed Dow Jones Industrial Average by measuring implied volatility of the near-term DJX options.

VXD values can generally be accessed wherever stock or futures quotes are available, and are easily accessed on the CBOE website at http://www.cboe.com/quotes. CBOE calculates and disseminates VXD values every 15 seconds throughout the trading day under ticker symbol "VXD," providing a real-time measure of volatility in The Dow.

In addition to VXD, CBOE also calculates and disseminates the CBOE S&P 500 Volatility Index, VIX; and the CBOE Nasdaq-100 Volatility Index, VXN.

The new CBOE DJIA BuyWrite Index (BXD) is a benchmark index that measures the performance of a theoretical portfolio that sells DJX call options, against a portfolio of the stocks included in the Dow Jones Industrial Average. A "buy-write," also called a covered call, generally is considered to be an investment strategy in which an investor buys a stock or a basket of stocks, and also sells call options that correspond to the stock or basket of stocks. This strategy can be used to enhance portfolio returns and reduce volatility.

In addition to BXD, CBOE also publishes the CBOE S&P 500 BuyWrite Index, BXM. Created and introduced by CBOE in April, 2002, BXM has become the benchmark for investors and investment professionals seeking a long-term track record of the buy-write strategy.

For more information on methodology, historical data, charts and comparisons for VXD, VIX and VXN, BXD and BXM please visit: http://www.cboe.com/IndexSites.

CBOE, the world's largest options marketplace and the creator of listed options, is regulated by the Securities and Exchange Commission (SEC). For additional information about the CBOE and its products, visit the CBOE website at: http://www.cboe.com/.


CBOE Volatility Index (VIX)