A Look Ahead We've shown we can deliver solid financial results for our shareholders and smart solutions for our clients across various economic environments. We've grown our business and maintained a firmwide focus on effective and efficient use of our balance sheet and capital base. We've also maintained a commitment to managing our cost structure and our businesses overall with a sense of discipline.

In 2005, we will no doubt be confronted with a new set of challenges. Interest rates are expected to continue rising, geopolitical risks remain high and there is uncertainty about earnings growth in many sectors. Our focus will be steadfast on what matters to you — our shareholders, clients and employees.

That means we will continue investing to:

• Improve client service, deepening relationships and executing well.
• Build out our businesses, achieving scale in targeted products and services and allocating more financial and human resources to those areas around the globe that offer the most promise for profitable growth.
• Manage capital efficiently, by deploying it in key opportunities consistent with our strategies in each business and, where appropriate, returning some portion to shareholders when this presents the most attractive near-term option.
• Develop our people, which will require us to continue to take steps to identify and train our professionals and leaders to enhance their effectiveness and capabilities to meet the ever-increasing demands of our clients and the competitive marketplace.

On behalf of my colleagues throughout Merrill Lynch, I thank you for the confidence you have shown in our efforts to realize our full potential. We have tremendous confidence and excitement about our future, and I look forward to reporting to you on another great year in 2005.

Sincerely,