The action alleges that the defendants engaged in an unlawful course of conduct designed to improperly financially advantage themselves to class members’ detriment. The defendants, in contravention of their disclosure obligations, fiduciary responsibilities and National Association of Securities Dealers rules, allegedly failed to properly disclose that they systematically applied incentives and demerits to compel brokerage mid-level managers to maximize sales of mutual funds carrying the Merrill Lynch brand name. In turn, these regional directors, directors and resident managers allegedly brought intense pressure to bear on the financial advisors under their supervision to steer clients away from mutual funds owned or managed by other entities. By investing in the Merrill Lynch funds, class members 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.

If you purchased Merrill Lynch funds under these circumstances during the applicable period, you may request appointment by the court as a lead plaintiff if you do so by July 19, 2004. A lead 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 your claim is typical of the claims of other class members, and that you will adequately represent the class. Under certain circumstances, one or more class members may together serve as lead plaintiffs. Your ability to share in any recovery is not affected by the decision whether or not to serve as a lead plaintiff. You may retain any counsel of your choice to serve as you in this action, or you may choose to do nothing, and remain in the class as a silent member.