Merrill Lynch Launches Single Security Representing 20 Internet Stocks

Search Blogs that Mention this News Release
Click this link to view linked Bookmarking Services
Click this link to view linked Blogging Services
Merrill Lynch Launches Single Security Representing 20 Internet Stocks
    NEW YORK, Sept. 22 /PRNewswire/ -- Merrill Lynch, Pierce, Fenner & Smith
Incorporated today announced the launch of Internet HOLDRs(SM), an innovative
security representing investors' undivided beneficial ownership interest in
the common stock of 20 specified companies that are involved in various
segments of the Internet industry.  3,766,700 Internet HOLDRs were priced for
initial sale to the public today at an aggregate offering price in excess of
$400,000,000.  Trading of Internet HOLDRs under the symbol "HHH" begins
Thursday, September 23, on the American Stock Exchange.  Newly issued Internet
HOLDRs will be available on a continuous basis.
    "The HOLDRs(SM) investment platform is designed to provide investors with
a flexible, cost-effective way to diversify their investment in a particular
industry through a single, exchange-listed security," said Steve Bodurtha,
First Vice President and Senior Director of Merrill Lynch's Customized
Investments Group.
    Internet HOLDRs are depositary receipts issued by the Internet HOLDRs
Trust, for which The Bank of New York acts as Trustee.  Unlike a mutual fund
or UIT, Internet HOLDRs represent an investor's undivided beneficial ownership
interest in 20 of the largest and most liquid companies in the Internet
industry measured by market capitalization and trading volume.  An investor
may obtain Internet HOLDRs by purchasing them on the American Stock Exchange
or by depositing with the Trustee the required share amounts of the
20 underlying Internet stocks and paying an issuance fee of up to $0.10 per
HOLDR to the Trustee.  Investors also may cancel their HOLDRs by presenting
them to the Trustee and paying a cancellation fee of up to $0.10 per HOLDR to
the Trustee in return for delivery to the investor of the 20 Internet stocks
represented by the HOLDRs.  The issuance and cancellation of HOLDRs is not a
taxable event, and this mechanism will provide investors with investing and
trading flexibility.
    Internet HOLDRs, which can only be traded, issued, and canceled in
round-lots of 100 HOLDRs, are the first registered U.S. security to represent
investors' undivided ownership rights in other U.S. securities.  "In many ways
Internet HOLDRs represent a break-through for investors," said Bodurtha.
"Through HOLDRs, investors will be able to invest in and trade a variety of
companies at costs that are expected to be lower than investing through other
vehicles."
    In July of last year Merrill Lynch launched its first HOLDRs product,
Telebras HOLDRs (NYSE: TBH), with an initial market capitalization of more
than $4.68 billion.  Telebras HOLDRs represent investors' interests in
12 separate American Depositary Receipts.  Since its inception, TBH has traded
on average more than 1.7 million shares per day.
    The specific share amounts underlying each round-lot of 100 Internet
HOLDRs are set forth in the chart below.  The share amounts set forth below
should not change except for changes due to corporate events such as stock
splits or reverse splits on the underlying securities or reconstitution
events.

    Company Name              Ticker Share      Amounts

    America Online Inc.            AOL            21
    Yahoo Inc.                     YHOO           13
    Amazon.com Inc.                AMZN            9
    eBay Inc.                      EBAY            6
    At Home Corp.                  ATHM           17
    Priceline.Com Inc.             PCLN            7
    CMGI Inc.                      CMGI            5
    Inktomi Corporation            INKT            3
    RealNetworks, Inc.             RNWK            4
    Exodus Communications, Inc.    EXDS            4
    E*TRADE Group Inc              EGRP           12
    DoubleClick Inc.               DCLK            2
    Ameritrade Holding Corp.       AMTD            8
    Lycos, Inc.                    LCOS            4
    CNET, Inc.                     CNET            4
    PSINet Inc.                    PSIX            3
    Network Associates, Inc.       NETA            7
    EarthLink Network, Inc.        ELNK            2
    MindSpring Enterprises, Inc.   MSPG            3
    Go2Net, Inc.                   GNET            1

    Merrill Lynch is one of the world's leading financial management and
advisory companies with total client assets of approximately $1.5 trillion.
As an investment bank, it is the top global underwriter and market maker of
debt and equity securities and a leading strategic advisor to corporations,
governments, institutions, and individuals worldwide.  Through Merrill Lynch
Asset Management and Merrill Lynch Mercury Asset Management, wholly owned
subsidies, the company is one of the world's largest managers of financial
assets.
SOURCE Merrill Lynch, Pierce, Fenner & Smith Incorporated
http://www.merrilllynch.com
Company News On-Call:
http://www.prnewswire.com/comp/555800.html or fax,
800-758-5804, ext. 555800
CONTACT:
Erik T. Hendrickson of Merrill Lynch,
212-449-7293, ehendrickson@exchange.ml.com