Merrill Lynch Investment Managers' Assets in Diversified Portfolios Reach $10 Billion; Building Off Success of FDP, Merrill Lynch Launches FDP - Multi-Firm.

NEW YORK -- Merrill Lynch Investment Managers (MLIM) announced today that its assets in the Diversified Portfolios (DPs) products cumulatively crossed $10 billion as of July 31. The DPs, which include Wealth Diversified Portfolios (WDP), Funds Diversified Portfolios (FDP) and Global Private Client's (GPC) Consults Diversified Portfolios (CDP) offer Merrill Lynch (NYSE: MER) clients the time-tested investment techniques of institutional investing--diversification, asset allocation and automatic rebalancing--in a single packaged solution.

"MLIM's success within the Diversified Portfolio platforms is a testament to innovative product development and the productive partnership we have built with our Global Private Client colleagues," said Robert Doll, president and chief investment officer of MLIM. "Our participation in the DPs plays a critical role in advancing MLIM's growth plans and reaching $10 billion in assets is an important milestone for our business."

Launched by GPC in April 2002, CDP offers a variety of diversified portfolios of separately managed accounts in a single portfolio. CDP initially featured a range of investment options managed by MLIM and was later expanded to include strategies managed by other asset managers available in GPC's Consults(R) separately managed account platform.

Following the success of CDP, MLIM launched WDP in December 2003 to bring this strategy to high net worth investors. Available through MLIM's Private Investors platform, WDP offers clients private portfolio management with access to a personal portfolio manager. WDP combines all the features of the DP products with the added ability to tailor solutions to investors' individual needs. In May 2004, focusing on the need to provide diversified portfolios to investors at every asset level, MLIM partnered with GPC to launch FDP, a similar product which offers clients pre-selected "baskets" of MLIM open-end mutual funds. The FDP portfolios provide the signature features of the DP products--diversification, asset allocation and automatic rebalancing--plus the benefit of a low investment minimum starting at $15,000.

"The DPs were designed to automate the wealth management process for Financial Advisors, allowing them to deliver a high level of service to clients across market segments," said Jerry Miller, chief operating officer, MLIM Global Proprietary. "Our commitment to continuous innovation and an ongoing dialogue with Financial Advisors and clients make the opportunities for the diversified platform limitless."

Building on the success of the FDP service, Merrill Lynch also announced today the introduction of FDP - Multi-Firm, which provides access to the proven investment capabilities of four leading asset management firms in addition to MLIM: Franklin Templeton Investments, MFS Investment Management, Marisco Capital management and Van Kampen Investments.

The FDP - Multi-Firm portfolios are invested in a range of mutual funds in line with one of four portfolio objectives - U.S. Large Cap Equity, Small Cap Equity, International Equity and Fixed Income. These four portfolios, tied to a client's risk profile and investment objectives, provide a strategic allocation across asset classes to manage risk and return. The portfolios are automatically rebalanced as determined by the client - quarterly, semiannually or annually - to help protect gains and manage risk over time.

Merrill Lynch is one of the world's leading financial management and advisory companies with offices in 36 countries and total client assets of approximately $1.6 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. Firmwide, assets under management total $478 billion. For more information on Merrill Lynch, please visit www.ml.com.

Consults Diversified Portfolios are diversified, discretionary managed strategies available through the Merrill Lynch Consults (R) Service offered by Merrill Lynch, Pierce, Fenner & Smith, Incorporated.

Wealth Diversified Portfolios are diversified, discretionary managed account strategies available from Merrill Lynch Investment Managers, L.P.

For a current prospectus of each of the Merrill Lynch mutual funds in the FDP or FDP Multi-Firm service, which contain more complete information, please contact 1-800-MERRILL. Before investing, clients should consider the investment objectives, risks, charges and expenses of the funds. This and other information may be found in each fund's prospectus. Prospective clients should read the prospectuses carefully before investing. Merrill Lynch funds are distributed through FAM Distributors, Inc., member NASD.