Stull, Stull & Brody Announces Class Action against Merrill Lynch & Co., Merrill Lynch Pierce Fenner & Smith Incorporated and Merrill Lynch Investment Managers L.P

Business Wire, June 1, 2004

Business Editors/Legal Writers

NEW YORK--(BUSINESS WIRE)--June 1, 2004

Notice is hereby given that a class action lawsuit was filed on June 1, 2004, in the United States District Court for the Southern District of New York, on behalf of all persons who purchased or otherwise acquired shares or other ownership units of any of the mutual funds carrying the "Merrill Lynch" brand name (the "MLIM Funds") through Merrill Lynch, Pierce, Fenner & Smith Incorporated ("MLPF&S") acting as broker between May 20, 1999 and May 19, 2004 (the "Class Period") and who were damaged thereby, seeking to pursue remedies under the Securities Exchange Act of 1934.

If you with to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Stull, Stull & Brody (Aaron Brody, Esq.) toll free at 1-800-337-4983 or 1-212-687-7230, or via e-mail at SSBNY@aol.com.

The following MLIM Funds (Nasdaq symbols are also listed) are subject to this lawsuit:

ML Aggregate bond Index Fund (Sym: MDABX, MAABX)
ML Balanced Capital Fund, Inc. (Sym: MDCPX, MBCPX, MCCPX)
ML Basic Value Fund, Inc. (Sym: MDBAX, MBBAX, MCBAX)
ML Bond Fund, Inc - Core Bond Portfolio (Sym: MDHQX, MBHQX, MCHQX)
ML Bond Fund, Inc. - High Income Portfolio (Sym: MDHIX, BHIX, MCHIX,
MAHIX)
ML Bond Fund, Inc. - Intermediate Term (Sym: MDCTX, MBCTX, MCCTX,
MACTX)
ML California Insured Municipal Bond Fund (Sym: MDCMX, MBCMX, MCCMX,
MACMX)
ML Developing Capital Markets Fund, Inc. (Sym: MDDCX, MBDCX, MCDCX,
MADCX)
ML Disciplined Equity Fund, Inc. (Sym: MDDGX, MBDGX, MCDGX, MADGX)
ML Dragon Fund, Inc. (Sym: MDDRX, MBDRX, MCDRX, MADRX)
ML Equity Dividend Fund (Sym: MDDX, MBDVX, MCDVX, MADVX)
ML EuroFund (Sym: MDEFX, MBEFX, MCEFX, MAEFX)
ML Florida Municipal Bond Fund (Sym: MDFMX, MBFMX, MAFMX)
ML Focus Twenty Fund, Inc. (Sym: MDFOX, MBFOX, MCFOX, MAFOX)
ML Focus Value Fund, Inc. (Sym: MDPNX, MBPNX, MCPNX, MAPNX)
ML Fundamental Growth Fund, Inc. (Sym: MDFGX, MBFGX, MCFGX, MAFGX)
ML Global Allocation Fund, Inc. (Sym: MDLOX, MBLOX, MCLOX, MALOX)
ML Global Balanced Fund, Inc. (Sym: MDGNX, MBGNX, MCGNX, MAGNX)
ML Global Financial Services Fund, Inc. (Sym: MDFNX, MBFNX, MCFNX,
MAFNX)
ML Global Growth Fund, Inc. (Sym: MDGGX, MBGGX, MCGGX, MAGGX)
ML Global SmallCap Fund, Inc. (Sym: MDGCX, MBGCX, MCGCX, MAGCX)
ML Global Technology Fund, Inc. (Sym: MDGTX, MBGTX, MCGTX, MAGTX)
ML Global Value Fund, Inc. (Sym: MDVLX, MBVLX, MCVLX, MAVLX)
ML Healthcare Fund, Inc. (Sym: MDHCX, MBHCX, MCHCX, MAHCX)
ML International Equity Fund (Sym: MDIEX, MBIEX, MCIEX, MAIEX)
ML International Fund (Sym: MDILX, MBILX, MCILX, MAILX)
ML International Index Fund (Sym: MAIIX)
ML International Value fund (Sym: MDIVX, MBIVX, MCIVX, MAIVX)
ML Internet Strategies Fund (Sym: MANTX,MBNTX, MCNTX, MDNTX)
ML Large Cap Core Fund (Sym: MDLRX, MBLRX, MCLRX, MALRX)
ML Large Cap Growth Fund (Sym: MDLHX, MBLHX, MCLHX, MALHX)
ML Large Cap Value Fund (Sym: MDLVX, MBLVX, MCLVX, MALVX)
ML Latin America Fund, Inc. (Sym: MDLTX, MBLTX, MCLTX, MALTX)
ML Low Duration Fund (Sym: MDDUX, MBDUX, MCDUX, MADUX)
ML Mid Cap Value Fund (Sym: MDRFX, MBRFX, MCRFX, MARFX)
ML Municipal Bond Fund, Inc. - Insured (Sym: MDMIX, MBMIX, MCMIX,
MAMIX)
ML Municipal Bond Fund, Inc. - Limited Maturity (Sym: MDLMX, MBLMX,
MCLMX, MALMX)
ML Municipal Bond Fund, Inc. - National (Sym: MDNLX, MBNLX, MCNLX,
MANLX)
ML Municipal Intermediate Term Fund (Sym: MDMTX, MBMTX, MCMTX, MAMTX)
ML Resources Trust - (Sym: MDGRX, MBGRX, MCGRX, MAGRX)
ML New Jersey Municipal Bond Fund (Sym: MDNJX, MBNJX, MCNJX, MANJX)
ML New York Municipal Bond Fund (Sym: MDNKX, MBNKX, MCNKX, MANKX)
ML Pacific Fund, Inc. (Sym: MDPCX, MBPCX, MCPCX, MAPCX)
ML Pan-European Growth Fund (Sym: MDPEX, MBPEX, MCPEX, MAPEX)
ML Pennsylvania Municipal Bond Fund (Sym: MDPYX, MBPYX, MCPYX, MAPYX)
ML S&P 500 Index Fund MDSRX (Sym: MASRX, MDUGX)
ML Short Term U.S. Government Fund, Inc. (Sym: MDAJX, MBUGX, MBAJX,
MCUGX, MCAJX)
ML Small Cap Growth Fund (Sym: MRUSX, MBSWX, MCSWX, MASWX)
ML Small Cap Index Fund (Sym: MDSKX, MASKX)
ML Small Cap Value Fund, Inc. (Sym: MDSPX, MBSPX, MCSPX, MASPX)
ML Strategy All-Equity Fund (Sym: MDAEX, MBAEX, MCAEX, MAAEX)
ML Strategy Growth and Income Fund (Sym: MDTGX, MBTGX, MCTGX, MATGX)
ML Strategy Long-Term Growth Fund (Sym: MDYLX, MBYLX, MCYLX, MAYLX)
ML U.S. Government Mortgage Fund (Sym: MDFSX, MBGSX, MCFSX, MAFSX)
ML U.S. High Yield Fund, inc. (Sym: MDCHX, MBCHX, MCCHX, MACHX)
ML Utilities and Telecommunications Fund (Sym: MDGUX, MBGUX, MCGUX,
MAGUX)
ML World Income Fund, Inc. (Sym: MDWIX, MBWIX, MCWIX, MAWIX)

The Complaint charges defendants Merrill Lynch & Co. ("ML&Co."), Merrill Lynch Pierce Fenner & Smith Incorporated ("MLPF&S") and Merrill Lynch Investment Managers L.P. ("MLIM LP") with engaging in an unlawful and deceitful course of conduct designed to improperly financially advantage defendants to the detriment of plaintiffs and other members of the Class. As part and parcel of defendants' unlawful conduct, defendants, in contravention of their disclosure obligations, fiduciary responsibilities and National Association of Securities Dealers ("NASD") Rules, failed to properly disclose that defendants systematically applied incentives and demerits to induce and compel MLPF&S's mid-level managers to maximize sales of mutual funds carrying the MLIM brand name. In turn, these mid-level managers - Regional Directors, Directors and Resident Managers - brought intense pressure to bear on the Financial Advisors under their supervision to steer the Financial Advisors' clients away from mutual funds owned and managed by other entities and into MLIM Funds. By investing in the MLIM Funds, plaintiffs and other members of the Class received a return on their investment that was substantially less than the return on investment that they would have received had they invested the same dollars in a comparable fund. MLPF&S's undisclosed plan and scheme has operated as a wrongful and deceptive exploitation of the misplaced trust of its clients.