BlackRock Launches Lifecycle Prepared Portfolios.

Institutional Approaches Bring New Value to Evolving World of Defined Contribution

NEW YORK -- BlackRock, Inc. (NYSE:BLK) today announced the introduction of its Lifecycle Prepared Portfolios, a series of nine individual portfolios with target maturity dates ranging from 2010 through 2050, designed specifically for defined contribution (DC) plans and the long-term retirement goals of plan participants.

"The Pension Protection Act of 2006 introduced some of the most significant reforms to both defined benefit and defined contribution pension plans in decades," said Barbara G. Novick, Vice Chairman and Head of Account Management at BlackRock. "As DC plans continue to emerge as the retirement vehicle of choice, it's imperative that plan sponsors and investment managers apply the same level of disciplined asset management techniques that have historically been used for DB plans."

BlackRock's Lifecycle Prepared Portfolio series offers a complete, institutional-quality, long-term investment solution to the retirement goals of individual investors. Once an investor's retirement date has been determined - and the appropriate Prepared Portfolio has been selected - the risk/return trajectory (or "glidepath") of the fund will set future portfolio asset allocations, with risk moderating as the investor approaches retirement.

"The Act is rapidly driving DC plan sponsors to some critical decision points," said Douglas L. DuMond, Managing Director and Head of the U.S. Defined Contribution business at BlackRock. "Perhaps most important, automatic enrollment and automatic contribution increase features are quickly becoming mainstream, as corporate plan sponsors seek to address the legislation's mandate to build broader employee enrollment and participation in their DC plans. Given the need as well to enhance the potential retirement value of the DC offering, we expect that many plan sponsors will almost certainly forego stable value and money market funds as the default investments for plan participants in favor of managed accounts, balanced funds, target risk and target date funds, considering the potential for higher long-term returns these funds offer.

"There is no shortage of investment management firms rightfully sharpening their focus on this increasingly important segment of the retirement market. Plan sponsors are faced with the daunting task of identifying the qualified default investment options best suited for employee populations, and then selecting the managers that have the most credible investment approaches.

"BlackRock's Lifecycle Prepared Portfolios combine thoughtful glidepath construction and a highly-focused investment process designed to offer investors the benefits of the investment insights of a global investment firm."

Unique Glidepath Construction and Active Asset Allocation 

In developing the asset allocation glidepath for the Lifecycle Prepared Portfolios, BlackRock has struck what the firm views as an effective balance between the long-term goal of achieving projected replacement income at retirement and a shorter-term concern for the risk incurred by investors during their time in the plan. The BlackRock glidepath provides a balanced solution that equates to "moderate" overall risk, balancing long-term and shorter-term performance and volatility considerations.

The construction of an appropriate glidepath is an important contributor to the success of a target date fund. Of equal importance is having a disciplined portfolio implementation process that can add investment value while assuring consistency with the glidepath through time. For the BlackRock Lifecycle Prepared Portfolios, this means ongoing and disciplined portfolio risk monitoring, which includes accurate characterization of underlying fund risk as well as the aggregate risk of the overall portfolio.

The BlackRock Lifecycle Prepared Portfolios benefit from two levels of decision making: (1) individual equity and fixed income strategy and underlying fund selection, and (2) intermediate-term, tactical asset allocation decisions based on the firm's outlook and valuations of the equity and fixed income markets. BlackRock will qualitatively and quantitatively assess the broad range of mutual funds it offers across its equity and fixed income portfolio management groups.

"Importantly, the glidepath for the Lifecycle Prepared Portfolios features two distinguishing characteristics," said DuMond.

"First, BlackRock has designed the accumulation phase glidepath of each portfolio so that a 10th percentile portfolio return - that is, a relatively large, negative portfolio return occurring on average only once every 10 years - should not, according to BlackRock's backtesting, impact the investor's accumulated wealth at their retirement date by more than 10%.

"Second, the Portfolios permit a plus or minus 10% asset allocation band around the glidepath weightings between equity and fixed income. We view the glidepath as the investment policy or risk budget, similar to what DB plans maintain. Most DB plan sponsors or trustees look at their investment policy annually, as opposed to establishing a set and forget policy. We will do the same with the glidepath.

"Further BlackRock's glidepath allows for the flexibility to exploit broad market opportunities - a feature most glidepaths do not offer. This periodic rebalancing will encompass market movements and valuation, not just rebalancing to the glidepath based on fund cash flows. This a critical attribute of most professionally managed DB plans that we are bringing to the DC market. While there are no guaranteed outcomes, rebalancing can and should include both strategic and tactical elements.

"Lastly BlackRock Solutions, where we provide risk analytics to over $4.5 Trillion in client assets, serves as the engine that drives our portfolio mangers' understanding of portfolio risk."

Important Notes

Asset allocations strategies may entail greater risk than stable value or money market strategies. Asset allocation strategies do not assure profit and do not protect against loss.

Shares of BlackRock Funds are distributed by BlackRock Distributors, Inc. You should consider the investment objectives, risks, charges and expenses of the Funds carefully before investing. The Funds' prospectus contains this and other information about the Funds and is available, along with information on other BlackRock Funds, by calling 800-882-0052 or by accessing the website at www.blackrock.com/funds or from your Financial Advisor. The prospectus should be read carefully before investing.

About BlackRock

BlackRock has been managing defined contribution plan assets since 1992 and is among the largest managers of DC assets in the United States with approximately $70 billion of assets under management.

BlackRock is one of the world's largest publicly traded investment management firms. As of March 31, 2007, assets under management were $1.154 trillion. The firm manages assets on behalf of institutions and individuals worldwide through a variety of equity, fixed income, cash management and alternative investment products. In addition, a growing number of institutional investors use BlackRock Solutions[R] investment system, risk management and financial advisory services. Headquartered in New York City, the firm has approximately 5,000 employees in 18 countries and a major presence in key global markets, including the U.S., Europe, Asia, Australia and the Middle East. For additional information, please visit the Company's website at www.blackrock.com.

Forward-Looking Statements 

This press release, and other statements that BlackRock may make, may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act, with respect to BlackRock's future financial or business performance, strategies or expectations. Forward-looking statements are typically identified by words or phrases such as "trend," "potential," "opportunity," "pipeline," "believe," "comfortable," "expect," "anticipate," "current," "intention," "estimate," "position," "assume," "outlook," "continue," "remain," "maintain," "sustain," "seek," "achieve," and similar expressions, or future or conditional verbs such as "will," "would," "should," "could," "may" or similar expressions.

BlackRock cautions that forward-looking statements are subject to numerous assumptions, risks and uncertainties, which change over time. Forward-looking statements speak only as of the date they are made, and BlackRock assumes no duty to and does not undertake to update forward-looking statements. Actual results could differ materially from those anticipated in forward-looking statements and future results could differ materially from historical performance.

In addition to factors previously disclosed in BlackRock's SEC reports and those identified elsewhere in this communication, the following factors, among others, could cause actual results to differ materially from forward-looking statements or historical performance: (1) the introduction, withdrawal, success and timing of business initiatives and strategies; (2) changes in political, economic or industry conditions, the interest rate environment or financial and capital markets, which could result in changes in demand for products or services or in the value of assets under management; (3) the relative and absolute investment performance of BlackRock's investment products, including its separately managed accounts and the former MLIM business; (4) the impact of increased competition; (5) the impact of capital improvement projects; (6) the impact of future acquisitions or divestitures; (7) the unfavorable resolution of legal proceedings; (8) the extent and timing of any share repurchases; (9) the impact, extent and timing of technological changes and the adequacy of intellectual property protection; (10) the impact of legislative and regulatory actions and reforms and regulatory, supervisory or enforcement actions of government agencies relating to BlackRock, Merrill Lynch or PNC; (11) terrorist activities and international hostilities, which may adversely affect the general economy, domestic and local financial and capital markets, specific industries, and BlackRock; (12) the ability to attract and retain highly talented professionals; (13) fluctuations in foreign currency exchange rates, which may adversely affect the value of advisory fees earned by BlackRock; (14) the impact of changes to tax legislation and, generally, the tax position of the Company; (15) BlackRock's ability to successfully integrate the MLIM business with its existing business; (16) the ability of BlackRock to effectively manage the former MLIM assets along with its historical assets under management; and (17) BlackRock's success in maintaining the distribution of its products.

BlackRock's Annual Reports on Form 10-K and BlackRock's subsequent filings with the SEC, accessible on the SEC's website at http://www.sec.gov and on BlackRock's website at http://www.blackrock.com, discuss these factors in more detail and identify additional factors that can affect forward-looking statements. The information contained on our website is not a part of this press release.