Quick Facts

(1) Reported financial results are in accordance with generally accepted accounting principles (GAAP). For further information, including Notes to Consolidated Financial Statements, please see SEC Form 10-K filed February 26, 2007.

(2) Reported results for 1Q06 include $1.8 billion, or $1.2 billion after taxes, for the one-time, non-cash acceleration of compensation expenses arising from modifications to the retirement eligibility requirement of existing stock-based employee compensation awards and the adoption of the Statement of Financial Accounting Standards No. 123 (as revised in 2004); (together "one-time compensation expenses"). Management believes that while the results excluding the one-time compensation expenses are considered "non-GAAP" measures, they depict the operating performance of the company more clearly and enable more appropriate period-to-period comparisons. Details of the one-time compensation expenses were outlined in Merrill Lynch's April 3, 2006 Form 8-K, and reconciliations of results both including and excluding the one-time compensation expenses appear on Attachments II and III to Merrill Lynch's first quarter 2006 earnings announcement dated April 18, 2006.

(3) Reported results for certain periods include the impact of September 11-related net recoveries and expenses and other charges and benefits. Management also examines results excluding those items, which are Merrill Lynch's operating basis results. Operating basis results should not be considered an alternative to results as determined in accordance with generally accepted accounting principles ("GAAP") in the United States, but rather as non-GAAP measures considered relevant by management in comparing current year results with prior year results. Management believes these measures are valuable tools for investors to judge the quality of Merrill Lynch's financial performance as they allow investors to more readily gauge earnings and identify trends. Items which would be excluded from operating results in the periods above include the following after-tax amounts: in 1Q04, $1 million of net benefits from restructuring and other charges ($2 million pre-tax); 2Q04, $10 million of net benefits from restructuring and other charges ($11 million pre-tax); and in full year 2004, $11 million of net benefits from restructuring and other charges ($13 million pre-tax).

(4) Annualized for quarterly periods.

(5) Excludes 100, 200 and 100 full-time employees on salary continuation severance at year-end 2006, 2005 and 2004, respectively.

(6) Excludes 300 full-time employees on salary continuation severance at the end of 2Q07.

(7) Excludes 2,400 MLIM employees that moved over to BlackRock at the end of 3Q06.

(8) MLIM's Assets Under Management were transferred to BlackRock upon completion of the merger and are no longer included in Merrill Lynch's Consolidated Assets Under Management.

(9) Estimated.