November 8, 2000
Notice No. 00-385

TO: All New York Mercantile Exchange Members

FROM: Daniel Rappaport, Chairman of the Board

RE: Exchange Sets Target Date for Demutualization


The Exchange today set a target date of November 15 for its demutualization, 
which will make it the first exchange in New York to convert from 
not-for-profit membership structure to a for-profit structure.

On October 24, the Exchange received a favorable private letter ruling from 
the Internal Revenue Service notifying the Exchange that there would be no 
tax consequences to it or any of its members as a result of its 
demutualization. This ruling was the final approval required for the 
demutualization of the Exchange to take effect.  The plan was previously 
approved by the Securities and Exchange Commission, the Commodity Futures 
Trading Commission, and a 97.5% majority of the Exchange members.

The Exchange has moved decisively and rapidly in its pursuit of this 
demutualization and the various requisite regulatory approvals.  This 
approach is indicative of the progressive and innovative manner in which we 
will proceed as a for-profit corporation to reposition the Exchange as a 21st 
century business enterprise that will create and pursue profitable new 
opportunities, react rapidly and decisively in an increasingly competitive 
marketplace, and explore interest by outside investors.

Pending certain legal notifications by November 15, the Exchange, a 
not-for-profit membership corporation under New York law, will be reorganized 
on that date as a for-profit membership corporation under Delaware law and 
will be renamed New York Mercantile Exchange, Inc.  A new stock-holding 
company named NYMEX Holdings, Inc., will be formed to own all of the economic 
interests and most of the voting control in the for-profit membership 
corporation.  Each existing NYMEX Division membership will be converted into 
one share of common stock in NYMEX Holdings, representing equity in the 
overall organization, and one membership in the Exchange representing trading 
privileges.

The common stock and trading privileges will not be separable until a 
majority of stockholders vote to permit separate trading of the common stock 
and trading rights.



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