PRIVATE CLIENT GROUP: INTERNATIONAL

Global Wealth Management

As global wealth continues to expand, individuals with complex financial needs require innovative solutions that recognize no national borders. Today, preeminence requires providing investors and their families with world-class advice, products and services - whenever, wherever and however they need them.

CAPTURING NEWLY CREATED WEALTH
The International Private Client Group, which serves non-U.S. individual clients, is one of the world's leading wealth management and advisory organizations, offering sophisticated investors insightful advice, customized solutions and responsive service.

Today, there are more than seven million high-net-worth investors worldwide - two-thirds of whom reside outside the United States. And new wealth is being created at an unprecedented rate: Over one million people became millionaires in 1999 alone. As the need for wealth management grows, we are well positioned - with more than 4,000 Financial Consultants in over 30 countries and the powerful resources of our global businesses - to offer them the personalized, consultative financial advice and services they require.

With our business well balanced among Europe, the Middle East, Latin America, Asia Pacific, Canada and Japan - where client relationships grew by 50% in 2000 - our expertise in local markets is complemented by unparalleled cross-border capabilities. This year, we succeeded in growing revenues by 24% - with net new client assets of $31 billion, including more than $8 billion in Canada - as new and longstanding clients worldwide entrusted more of their wealth to us.

ALIGNING GLOBAL RESOURCES TO MEET INDIVIDUAL NEEDS
Building on the work begun in 1999, this past year we refined our client segmentation strategy to more effectively orchestrate our global resources to meet clients' wealth management needs at the highest level.

High-net-worth individuals with over $1 million in investable assets are the cornerstone of our business. For these clients, our Financial Consultants provide customized advice and solutions from the finest range of investment, credit and generational planning services.

Recognizing the highly specialized requirements of our wealthiest clients and their families, we created Private Wealth Services - dedicated exclusively to delivering institutional-quality financial solutions tailored to the unique needs of these investors. Specially trained FC teams work in concert with our global specialists to provide an exceptional level of personal attention and advice.

A platform of choice rounds out our client segmentation strategy for affluent investors. Those who seek financial advice will have access to registered representatives through our newly established Merrill Lynch Investor Services groups. For those who prefer to manage their own investments, we formed a groundbreaking joint venture with HSBC to create the first global, online investment services company. Merrill Lynch HSBC was launched in Canada and Australia in December 2000, along with the research phase of our service offering in the U.K. Over the next five years this service will be rolled out globally.

SEIZING GLOBAL OPPORTUNITIES
Assets held by high-net-worth investors are projected to grow to $45 trillion by 2004, creating enormous opportunities for our future growth. With our strategy, our resources and our expertise, we are poised to become the preeminent leader in global wealth management.