Merrill Lynch Introduces Funds Diversified Portfolios.

Business Editors

NEW YORK--(BUSINESS WIRE)--June 9, 2004

Clients to Benefit from Easy Asset Allocation, Diversification and

Rebalancing in Baskets of Merrill Lynch Mutual Funds

Merrill Lynch (NYSE:MER) today announced the introduction of Funds Diversified Portfolios(SM) (FDP), a new non-discretionary brokerage service offering the benefits of asset allocation, diversification and regular rebalancing across a variety of mutual funds managed by Merrill Lynch Investment Managers (MLIM).

FDP offers clients seven pre-selected "baskets" of MLIM open-end mutual funds diversified across major asset classes - U.S. Large Cap Equity, Small Cap Equity, International and Fixed Income (taxable and tax-exempt). This new service provides several asset allocation solutions tied to various client risk profiles and investment objectives. In addition, FDP will rebalance regularly based on the client's standing instructions to ensure that client risk and investment objectives are maintained across market cycles.

"We have a long-standing dedication to helping clients manage their financial lives in a more efficient and effective way," said Robert Mulholland, co-head of Merrill Lynch's Global Private Client Americas region. "It is in that spirit we are pleased to partner with MLIM for the introduction of this unique new service which, through the guidance of a Merrill Lynch financial advisor, we believe will help further clients' wealth management strategies."

MLIM FDP portfolios are fully invested at all times and include seven to nine separate fund positions (depending on the portfolio) with approximately 1,000 underlying securities among all the funds. Clients will receive a quarterly performance report including information about the asset allocation, fund allocation and combined performance of the funds.

"Institutional investors responsible for billions in pension fund assets have long relied on asset allocation, diversification and rebalancing to manage portfolios to reach specific goals and objectives," said Jerry Miller, chief operating officer of MLIM's global proprietary business. "FDP allows individual investors to apply the same rigorous discipline to their own investments and choose a portfolio that is in line with their goals."

Funds in FDP are rebalanced to the target allocation on a regular schedule of the client's choosing - quarterly, semi-annually, annually or at the instruction of a client. There are no additional fees for this service beyond the normal sales charges.

Merrill Lynch is one of the world's leading financial management and advisory companies, with offices in 35 countries and total client assets of approximately $1.5 trillion. As an investment bank, it is a leading global underwriter of debt and equity securities and strategic advisor to corporations, governments, institutions and individuals worldwide. Through Merrill Lynch Investment Managers, the company is one of the world's largest managers of financial assets, with assets under management of $513 billion. For more information on Merrill Lynch, please visit www.ml.com.

For a current prospectus of each of the Merrill Lynch mutual funds within the FDP portfolios, which contains more complete information, please request a prospectus. Before investing, investors need to consider the investment objectives, risks, and charges and expenses of the funds. This and other information may be found in each fund's prospectus. Read the prospectus carefully before investing. Merrill Lynch mutual funds are distributed through FAM Distributors, Inc., member NASD.