Cohen, Milstein, Hausfeld & Toll, P.L.L.C. Announces Class Action Lawsuit Against Merrill Lynch

Business Wire, July 9, 2002

Business Editors, Legal Writers

Cohen, Milstein, Hausfeld & Toll, P.L.L.C. Client Sues Merrill

Lynch On Behalf of Persons Who Purchased Merrill Lynch Common Stock

and Other Securities Between July 3, 1999 and April 8, 2002

On July 2, 2002, an investor represented by the law firm of Cohen, Milstein, Hausfeld & Toll, P.L.L.C. (www.cmht.com) filed a class action suit against Merrill Lynch & Co., Inc. (NYSE:MER) ("Merrill Lynch"), Merrill Lynch, Pierce, Fenner & Smith Inc. and Henry Blodget (collectively, the "Defendants") in the United States District Court for the Southern District of New York, Civil Action No. 02 Civ. 5097, on behalf of all persons or entities who purchased Merrill Lynch securities between July 3, 1999, through April 8, 2002, (the "Class Period").

The complaint alleges that the Defendants violated sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and SEC Rule 10b-5, by employing improper business practices which artificially inflated the prices of Merrill Lynch common stock and other securities during the Class Period. More specifically, the complaint alleges that Defendants' improper business practices included issuing a series of false, inflated and/or biased securities analyst research reports concerning the common stocks of several Internet companies for whom Merrill Lynch provided or sought to provide investment banking services, in complete derogation of the "Chinese Wall" that was supposed to separate the firm's research analysis from its investment bankers; failing to adhere to the published securities ratings criteria Merrill Lynch distributed to its clients and other investors; and publicly recommending certain Internet stocks to investors in their research reports despite private misgivings and negative opinions about those stock as reflected in internal e-mails and communications. The complaint further alleges that Defendants manipulated their securities research as part of a larger scheme whereby Merrill Lynch wrongfully linked the compensation of Defendant Blodget and other Merrill Lynch securities analysts to the amount of investment banking business the analysts generated. The complaint also alleges that Merrill Lynch issued several misstatements to investors concerning, inter alia, the integrity of the firm's securities research and analyst practices in reports the firm filed with the SEC and in other public statements. A copy of the complaint can be obtained from the clerk's office of the court or Cohen, Milstein, Hausfeld & Toll, P.L.L.C.

Cohen, Milstein, Hausfeld & Toll, P.L.L.C. has significant experience in prosecuting investor class actions and actions involving financial fraud. The firm has offices in Washington, D.C., Seattle and New York and is active in major litigation pending in federal and state courts throughout the nation. You may visit the firm's website at www.cmht.com.

The firm's reputation for excellence has been recognized on repeated occasions by courts which have appointed the firm to lead positions in complex multi-district or consolidated litigation. Cohen, Milstein, Hausfeld & Toll, P.L.L.C. has taken a lead role in numerous important cases on behalf of defrauded investors, and has been responsible for a number of outstanding recoveries which, in the aggregate, total over a billion dollars. In addition to Cohen, Milstein, Hausfeld & Toll, P.L.L.C., two other laws firms, Berger & Montague, P.C. (215/875-3000) and Shapiro Haber & Urmy LLP (617/439-3939), are also serving as counsel for the plaintiff. The persons from Cohen, Milstein, Hausfeld & Toll, P.L.L.C. identified below are available to answer questions regarding this case.

If you purchased Merrill Lynch common stock during the Class Period, you may move for appointment as Lead Plaintiff on or before Aug. 30, 2002.

If you have any questions with regard to this notice or otherwise, please contact:

Steven J. Toll, Esq.

or

Katrina Jurgill

Cohen, Milstein, Hausfeld & Toll, P.L.L.C.

1100 New York Avenue, N.W.

West Tower, Suite 500

Washington, D.C. 20005-3964

Telephone: 888/240-7775 or 202/408-4600

E-mail: stoll@cmht.com or kjurgill@cmht.com