Chicago Mercantile Exchange Inc. Announces Election Results That Streamlined Its Board

Shareholders Also Approve Proposal to Extend Stock Transfer Restrictions



Apr 18, 2001, 01:00 ET from Chicago Mercantile Exchange

    CHICAGO, April 18 /PRNewswire/ -- After its annual meeting today, Chicago
 Mercantile Exchange Inc. (CME) announced the results of its first Board
 election as a for-profit company.  As a result, CME completed the first phase
 of a two-step process that will reduce the size of its Board from 39 to 19
 members by April 2002.  Other proposals passed by the requisite margins.
     A proposal to extend the period during which transfer restrictions apply
 to Class A shares was approved by 86.5 percent of the votes cast.  The Board
 recommended extending the transfer restrictions in order to facilitate a
 possible initial public offering of shares of Class A common stock and to
 assist in the development of an orderly market following any public offering.
 The company previously announced that it anticipates that any offering would
 be accomplished through a firm commitment underwriting led by one or more
 nationally recognized investment banks, and that shares of Class A common
 stock would be listed on the New York Stock Exchange or Nasdaq.
 
     The following were elected as "at-large" directors to a two-year term by
 Class A and Class B shareholders:
 
      * John W. Croghan, Partner, Rail-Splitter Fund (elected for the first
         time)
      * Terrence A. Duffy, President, T.D.A. Trading, Inc.
      * Daniel R. Glickman, Partner, Akin, Gump, Strauss, Hauer & Feld;
         previously, U.S. Secretary of Agriculture (elected for the first time)
      * James E. Oliff, Executive Director, International Futures and Options
         Associates; President, FILO Corp.; President, LST Commodities, LLC;
         Vice Chairman, LaSalle Street Trading Group, LLC.
      * John F. Sandner, President and Chief Executive Officer, RB&H Financial
         Services, L.P.; Chairman and Chief Executive Officer, FreeDrive.com
      * Verne O. Sedlacek, President and Chief Operating Officer, John W. Henry
        & Co.; President, Westport Capital Management Corp. and Global Capital
        Management Ltd.
 
     The following were elected as "at-large" directors to a one-year term by
 Class A and Class B shareholders:
      * Robert W. (Buck) Haworth, self-employed floor trader; certified public
         accountant
      * Paul Kimball, Managing Director and Global Head of the Foreign Exchange
         Department, Morgan Stanley Dean Witter
      * William P. Miller II, Senior Vice President and Independent Risk
         Oversight Officer, Commonfund Group; Director, Association for
         Financial Professionals; Director, Investment Risk Institute;
         Chairman, Executive Committee, End-Users of Derivatives Council;
         chartered financial analyst
      * David M. Pryde, Chairman, J.P. Morgan Futures Inc.
      * William R. Shepard, Founder and President, Shepard International, Inc.
 
     The following have been elected to a two-year term by Class B shareholders
 in their respective divisions:
      * Class B-1:  William G. Salatich, Jr., independent floor broker and
        trader
      * Class B-2:  Yra G. Harris, independent floor trader
      * Class B-3:  Gary M. Katler, Senior Vice President, Fimat USA
 
     In other action, CME shareholders ratified the appointment of Arthur
 Andersen LLP as auditors for 2001 and elected five members to each of two
 nominating committees that will select Board candidates for election by Class
 B shareholders next year.
     Chicago Mercantile Exchange Inc. ( www.cme.com ) is an international
 marketplace that brings together buyers and sellers on its trading floors and
 GLOBEX(R)2 around-the-clock electronic trading system.  CME offers futures
 contracts and options on futures primarily in four product areas:  interest
 rates, stock indexes, foreign currencies and agricultural commodities.  All
 over the world, pension funds and investment advisers, portfolio managers,
 corporate treasurers, commercial and investment banks, broker/dealers and
 individuals are among those who trade on CME as an integral part of their
 financial management strategy.  In 2000, more than 231 million contracts with
 an underlying value of more than $155 trillion changed hands at CME.  The
 exchange moves about $1 billion per day in settlement payments, manages
 $30 billion in collateral deposits and administers more than $1 billion of
 letters of credit.  On November 13, 2000, CME finalized its transformation
 into a for-profit, shareholder-owned corporation as it became the first U.S.
 financial exchange to demutualize by converting its membership interests into
 shares of common stock that can trade separately from exchange trading
 privileges.
     The statements contained in this news release are not intended to be, and
 shall not constitute, an offer of any securities of Chicago Mercantile
 Exchange Inc. for sale in any jurisdiction.  Any offer, if and when made, will
 only be made by way of a prospectus contained in a registration statement
 filed with the Securities and Exchange Commission under the Securities Act of
 1933, as amended.
     Annual meeting presentations are available on CME's Web site at
 www.cme.com
 
 

SOURCE Chicago Mercantile Exchange
    CHICAGO, April 18 /PRNewswire/ -- After its annual meeting today, Chicago
 Mercantile Exchange Inc. (CME) announced the results of its first Board
 election as a for-profit company.  As a result, CME completed the first phase
 of a two-step process that will reduce the size of its Board from 39 to 19
 members by April 2002.  Other proposals passed by the requisite margins.
     A proposal to extend the period during which transfer restrictions apply
 to Class A shares was approved by 86.5 percent of the votes cast.  The Board
 recommended extending the transfer restrictions in order to facilitate a
 possible initial public offering of shares of Class A common stock and to
 assist in the development of an orderly market following any public offering.
 The company previously announced that it anticipates that any offering would
 be accomplished through a firm commitment underwriting led by one or more
 nationally recognized investment banks, and that shares of Class A common
 stock would be listed on the New York Stock Exchange or Nasdaq.
 
     The following were elected as "at-large" directors to a two-year term by
 Class A and Class B shareholders:
 
      * John W. Croghan, Partner, Rail-Splitter Fund (elected for the first
         time)
      * Terrence A. Duffy, President, T.D.A. Trading, Inc.
      * Daniel R. Glickman, Partner, Akin, Gump, Strauss, Hauer & Feld;
         previously, U.S. Secretary of Agriculture (elected for the first time)
      * James E. Oliff, Executive Director, International Futures and Options
         Associates; President, FILO Corp.; President, LST Commodities, LLC;
         Vice Chairman, LaSalle Street Trading Group, LLC.
      * John F. Sandner, President and Chief Executive Officer, RB&H Financial
         Services, L.P.; Chairman and Chief Executive Officer, FreeDrive.com
      * Verne O. Sedlacek, President and Chief Operating Officer, John W. Henry
        & Co.; President, Westport Capital Management Corp. and Global Capital
        Management Ltd.
 
     The following were elected as "at-large" directors to a one-year term by
 Class A and Class B shareholders:
      * Robert W. (Buck) Haworth, self-employed floor trader; certified public
         accountant
      * Paul Kimball, Managing Director and Global Head of the Foreign Exchange
         Department, Morgan Stanley Dean Witter
      * William P. Miller II, Senior Vice President and Independent Risk
         Oversight Officer, Commonfund Group; Director, Association for
         Financial Professionals; Director, Investment Risk Institute;
         Chairman, Executive Committee, End-Users of Derivatives Council;
         chartered financial analyst
      * David M. Pryde, Chairman, J.P. Morgan Futures Inc.
      * William R. Shepard, Founder and President, Shepard International, Inc.
 
     The following have been elected to a two-year term by Class B shareholders
 in their respective divisions:
      * Class B-1:  William G. Salatich, Jr., independent floor broker and
        trader
      * Class B-2:  Yra G. Harris, independent floor trader
      * Class B-3:  Gary M. Katler, Senior Vice President, Fimat USA
 
     In other action, CME shareholders ratified the appointment of Arthur
 Andersen LLP as auditors for 2001 and elected five members to each of two
 nominating committees that will select Board candidates for election by Class
 B shareholders next year.
     Chicago Mercantile Exchange Inc. ( www.cme.com ) is an international
 marketplace that brings together buyers and sellers on its trading floors and
 GLOBEX(R)2 around-the-clock electronic trading system.  CME offers futures
 contracts and options on futures primarily in four product areas:  interest
 rates, stock indexes, foreign currencies and agricultural commodities.  All
 over the world, pension funds and investment advisers, portfolio managers,
 corporate treasurers, commercial and investment banks, broker/dealers and
 individuals are among those who trade on CME as an integral part of their
 financial management strategy.  In 2000, more than 231 million contracts with
 an underlying value of more than $155 trillion changed hands at CME.  The
 exchange moves about $1 billion per day in settlement payments, manages
 $30 billion in collateral deposits and administers more than $1 billion of
 letters of credit.  On November 13, 2000, CME finalized its transformation
 into a for-profit, shareholder-owned corporation as it became the first U.S.
 financial exchange to demutualize by converting its membership interests into
 shares of common stock that can trade separately from exchange trading
 privileges.
     The statements contained in this news release are not intended to be, and
 shall not constitute, an offer of any securities of Chicago Mercantile
 Exchange Inc. for sale in any jurisdiction.  Any offer, if and when made, will
 only be made by way of a prospectus contained in a registration statement
 filed with the Securities and Exchange Commission under the Securities Act of
 1933, as amended.
     Annual meeting presentations are available on CME's Web site at
 www.cme.com
 
 SOURCE  Chicago Mercantile Exchange