Law Firm Kaplan Fox Announces Class Action Lawsuit Against Merrill Lynch's Internet Architecture HOLDRS Trust

Business Wire, June 24, 2002

Business Editors & Legal Writers

Kaplan Fox Seeks To Recover Losses For Investors Who Purchased

Merrill Lynch's Internet Architecture HOLDRS Trust

Kaplan Fox (kaplanfox.com) has filed a class action against Merrill Lynch & Co., Inc., ("Merrill Lynch" or the "Company") and certain of its officers and directors, in the United States District Court for the Southern District of New York on behalf of all persons or entities who purchased or otherwise acquired Merrill Lynch's Internet Architecture HOLDRS Trust (the "IAH Trust") (AMEX: IAH) between February 10, 2000 and April 8, 2002, inclusive (the "Class Period").

The complaint alleges that Merrill Lynch and certain of its officers and directors violated the federal securities laws. The complaint alleges, among other things that during the Class Period defendants issued a series of false and misleading statements to the market about the IAH Trust, which is comprised of 20 specified companies involved in the "internet architecture" business. These companies were selected because they were involved in the key aspects of the Internet: supplying hardware and software to keep internet companies operational and profitable. Taking advantage of the profitable Internet wave, Merrill Lynch created multiple trusts that were composed of underlying securities of companies in the technology sector. Research analysts at Merrill Lynch issued inflated rating and biased reports for the companies whose stocks comprised the trusts and for additional Internet stocks. In so doing, defendants created a false demand for the securities that comprised the trusts, including the Internet Architecture HOLDRS, which in turn inflated the price of the trusts as well. Merrill Lynch engaged in such conduct despite knowing that the valuation of the Internet companies cold not be sustained, and that eventually fall in value. As a result, investors were damaged, by purchasing Internet Architecture HOLDRS Trust at artificially inflated levels during the Class Period.

Plaintiff seeks to recover damages on behalf of the Class and is represented by Kaplan Fox & Kilsheimer LLP. Our firm, with offices in New York, San Francisco, Chicago and New Jersey, has many years of experience prosecuting investor class actions and actions involving financial fraud. For more information about Kaplan Fox & Kilsheimer LLP, you may visit our website at www.kaplanfox.com

If you are a member of the Class, you may move the court no later than July 9, 2002 to serve as a lead plaintiff for the Class. In order to serve as a lead plaintiff, you must meet certain legal requirements.

If you have any questions about this Notice, the action, your rights, or your interests, please e-mail us at mail@kaplanfox.com or contact:

Frederic S. Fox, Esq.               Laurence D. King, Esq.
Jonathan K. Levine, Esq.            Kaplan Fox & Kilsheimer LLP
Donald R. Hall, Esq.                601 Montgomery Street
Kaplan Fox & Kilsheimer LLP         San Francisco, CA 94111
805 Third Avenue, 22nd Floor        (415) 772-4700
New York, NY 10022                  Fax: (415) 772-4707
(800) 290-1952                      E-mail address: mail@kaplanfox.com
(212) 687-1980
Fax: (212) 687-7714
E-mail address: mail@kaplanfox.com