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June 12, 2007

Intercontinental Exchange Inc. announces that it has entered into an agreement to acquire ChemConnect's commodity trading B2B platform.

ChemConnect is the leading electronic marketplace for the $150 billion U.S. natural gas liquids and chemicals markets.

ChemConnect is utilized by the world's biggest producers and consumers of natural gas liquids (NGL) and chemicals.

ChemConnect has established a 10-year track record in expanding the markets for such products and providing hedging opportunities for its market participants through specialized chemically-related products and services.

ChemConnect's NGL markets include widely-used products such as propane and ethane, while its chemicals business includes commodities such as ethylene, propylene and benzene.

ChemConnect will move its electronic markets to the ICE electronic B2B platform where both ICE and ChemConnect customers will benefit from a more comprehensive product offering in a single marketplace.

NGL prices are correlated with natural gas and crude oil prices, making these products a natural extension to those products currently offered on the ICE platform.

Charles Vice, ICE's Chief Operating Officer said "this strategic and accretive acquisition builds on ICE's commitment to serving the physical OTC energy markets by increasing access and transparency through B2B trading."

Vice added "we are pleased to welcome the ChemConnect team and their diverse customer base. The acquisition of the leading electronic physical NGL and chemicals trading platform is an excellent fit with our leadership in the U.S. physical gas and power markets, as well as our upcoming launch of the Platts Window on ICE for the global physical oil markets in the B2B segment."

Formed twelve years ago by a group of leading energy and chemical industry participants, ChemConnect is based in Houston, Texas.

Overall, ICE expects to move ChemConnect's products and customers to the new B2B platform, as well as transition the ChemConnect data business to ICE Data during the same period.

The all-cash transaction is expected to be completed by the middle of next month.

Terms of the acquisition were not disclosed.

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Source: B2B Portal