Merrill Lynch

Delivering Shareholder Value
Selected Financial Data
Management's Discussion and Analysis Introduction
Business Environment
Consolidated Results of Operations
Business Segments
Global Operations
Non-Interest Expenses
Income Taxes
Balance Sheet
Capital Adequacy and Liquidity
Capital Projects and Expenditures
Risk Management
Non-Investment Grade Holdings and Highly Leveraged Transactions
Litigation and Recent Developments
Management's Discussion of Financial Responsibility
Independent Auditors' Report
Consolidated Statements of Earnings
Consolidated Balance Sheets
Changes in Stockholders' Equity
Comprehensive Income
Cash Flows
Note 1 - Summary of Significant Accounting Policies
Note 2 - Other Significant Events
Note 3 - Trading and Related Activities
Note 4 - Investments
Note 5 - Borrowings
Note 6 - Fair Value Information and Non-Trading Derivatives
Note 7 - Preferred Securities Issued by Subsidiaries
Note 8 - Stockholders’ Equity and Earnings Per Share
Note 9 - Commitments and Contingencies
Note 10 - Employee Benefit Plans
Note 11 - Employee Incentive Plans
Note 12 - Income Taxes
Note 13 - Regulatory Requirements and Dividend Restrictions
Note 14 - Segment and Geographic Information
Supplemental Financial Information (unaudited)


Independent Auditors' Report

To the Board of Directors and Stockholders of Merrill Lynch & Co., Inc.:

We have audited the accompanying consolidated balance sheets of Merrill Lynch & Co., Inc. and subsidiaries ("Merrill Lynch") as of December 29, 2000 and December 31, 1999 and the related consolidated statements of earnings, changes in stockholders’ equity, comprehensive income and cash flows for each of the three years in the period ended December 29, 2000. These financial statements are the responsibility of Merrill Lynch’s management. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, such consolidated financial statements present fairly, in all material respects, the financial position of Merrill Lynch at December 29, 2000 and December 31, 1999, and the results of its operations and its cash flows for each of the three years in the period ended December 29, 2000 in conformity with accounting principles generally accepted in the United States of America.

New York, New York
February 26, 2001