Stull, Stull & Brody Announces Class Action Against Merrill Lynch On Behalf Of Purchasers Of Merrill Lynch's Internet Holdrs Depository Receipts

Notice is hereby given that a class action lawsuit was filed on August 19, 2002 in the United States District Court for the Southern District of New York, on behalf of purchasers of Merrill Lynch Internet HOLDRS depository receipts ("Internet HOLDRS") issued by the Merrill Lynch Internet HOLDRS/(SM) Trust (the "Trust") (AMEX:HHH) between September 22, 1999 and April 26, 2002, inclusive (the "Class Period") against defendants Merrill Lynch & Co., Inc. and Merrill Lynch Pierce, Fenner & Smith (together, "Merrill Lynch"), the Trust and signatories of the Registration Statement and Prospectus (together, the "Prospectus") issued on behalf of the Trust.

The complaint alleges that defendants violated Sections 11, 12(a)(2), and 15 of the Securities Act of 1933 by issuing a series of false and misleading statements, and omissions of material fact in the Registration Statement, which included a Prospectus, issued in connection with the initial public offering of the Internet HOLDRS depository receipts. The Internet HOLDRS depository receipts are "basket securities." Each Internet HOLDRS depository receipt represents an undivided beneficial ownership in the Internet companies specified in the Prospectus (the "Underlying Securities"). Thus, the price of the Internet HOLDRS is directly related to and moved with the price of the Underlying Securities. As alleged, the Prospectus was false and misleading and/or failed to disclose certain information concerning the Underlying Securities. Specifically, the complaint alleges that the Prospectus failed to disclose that during the Class Period the stock prices of Internet companies covered by Merrill Lynch, which included many of the Underlying Securities, were artificially inflated as a result of Merrill Lynch's analyst reports and stock ratings that did not set forth the true opinions held by those analysts of the subject Internet companies. Also alleged not to have been disclosed in the Prospectus is that Merrill Lynch's Internet group analysts, often under pressure from the Merrill Lynch's investment bankers, were initiating, continuing and/or manipulating research coverage to maintain and attract investment banking business. The complaint's allegations are based, in part, on information from the investigation of Merrill Lynch and its Internet group analysts conducted by the New York State Attorney General.

If you purchased Internet HOLDRS stock between September 22, 1999 and April 26, 2002, inclusive, you may, no later than September 24, 2002, request the Court appoint you as lead plaintiff.

Alead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as "lead plaintiff." Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain Stull, Stull & Brody, or other counsel of your choice, to serve as your counsel in this action.

If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Tzivia Brody, Esq. at Stull, Stull & Brody by calling toll-free 1-800-337-4983, or by e-mail at SSBNY@aol.com, or by fax at 212/490-2022, or by writing to Stull, Stull & Brody, 6 East 45th Street, New York, NY 10017.