Exhibit 99.1

Merrill Lynch Reports Second Quarter Net Earnings of $1.1 Billion, up
 10% from 2003; $1.06 Per Diluted Share; Record First Half Earnings;
             Extends Share Buyback by Another $2 Billion

    NEW YORK--July 13, 2004--Merrill Lynch (NYSE:MER) today reported
second quarter net earnings of $1.1 billion, up 10% from $977 million
in the 2003 second quarter. Earnings per diluted share were $1.06,
compared with $1.00 for the year-ago quarter. The growth in net
earnings was driven by Global Private Client and Merrill Lynch
Investment Managers, partially offset by lower earnings in Global
Markets and Investment Banking. Second quarter net revenues were $5.3
billion, up slightly from the second quarter of 2003. The pre-tax
profit margin was 26.4%, up nearly one percentage point from 25.6% in
the year-ago quarter.


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    First half net earnings were $2.3 billion, 44% higher than the
first six months of 2003, on net revenues that grew 13%, to $11.4
billion. These are record first half earnings for Merrill Lynch. The
first half pre-tax profit margin of 27.1% was nearly five percentage
points higher than the 22.4% achieved in the first half of 2003. First
half annualized return on equity was 15.7%, up from 13.0% in the
prior-year period.
    "We navigated well through a progressively more challenging
business environment during the second quarter," said Stan O'Neal,
chairman and chief executive officer. "The balance and strength of the
Merrill Lynch franchise was evident as we increased our earnings from
the strong year-ago quarter. These results demonstrate that our focus
on diversification, discipline and profitability has created a company
that can consistently deliver solid earnings.
    "We are confident we can achieve further growth and are continuing
to invest in key opportunities across our businesses. While the market
environment has become more challenging near-term, our franchise is
well-positioned to deliver superior service to our clients and strong
financial performance in various operating environments."

    Business Segment Review:

    Prior Year September 11-Related Net Recovery

    The September 11-related net recovery in the 2003 second quarter
included a partial pre-tax insurance reimbursement of $75 million,
offset by September 11-related costs of $14 million. The insurance
reimbursement represented a partial business interruption settlement
for GMI and was recorded as a reduction of expenses in that segment.
The costs were related to ongoing refurbishment of the World Financial
Center and were recorded in the Corporate segment.


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    Global Markets and Investment Banking (GMI)

    GMI performed well during the quarter despite a progressively more
challenging business environment in the second quarter of 2004. A
sharp decline in capital markets activity levels and volatility in
June, amid rising interest rates and geopolitical uncertainties,
affected largely the Global Markets area of the business segment.
Investment Banking continued to post higher quarterly net revenues and
improved its market position in the 2004 first half.

    --  GMI's second quarter pre-tax earnings were $1.0 billion, down
        7% from the year-ago quarter, driven by net revenues that
        decreased 7%, to $2.7 billion, lower expenses and the absence
        of the September 11-related recoveries. GMI's second quarter
        pre-tax profit margin was 37.2%, up more than two and a half
        points from the prior-year second quarter, excluding the
        September 11-related recoveries in that quarter, and from the
        first quarter of 2004.

    --  Global Markets net revenues decreased 16% from the 2003 second
        quarter and 22% from the 2004 first quarter, driven by lower
        net trading revenues in both debt and equity markets. The
        decline in debt markets net revenues, compared with both the
        first and prior year quarters, was driven primarily by lower
        revenues in interest rate trading as well as credit products,
        partially offset by increased revenues in the global principal
        investing and secured financing business. Equity markets net
        revenues decreased from the prior-year quarter and
        sequentially due to lower cash and equity-linked trading
        revenues, partially offset by higher revenues in equity
        financing and services, which are areas where Merrill Lynch
        has and will continue to invest.

    --  Investment Banking showed strength in the period with net
        revenues increasing 31% from the year-ago quarter and up
        slightly from the first quarter. Compared with the second
        quarter of 2003, both debt and equity origination and merger
        and acquisition advisory revenues grew with increased market
        and client activity.

    --  GMI's year-to-date pre-tax earnings were $2.1 billion, up 16%
        from the prior year period, on net revenues that rose 11%, to
        $5.9 billion. The year-to-date pre-tax profit margin was
        35.7%, compared with 34.0% in the first half of 2003.

    Global Private Client (GPC)

    GPC's diverse franchise and deep client relationships enabled this
business to achieve a strong year-over-year increase in revenues and
pre-tax earnings, despite the progressively slowing market environment
in the second quarter. GPC increased its Financial Advisor force for
the fourth consecutive quarter, underscoring management's confidence
in the long-term growth prospects for advice-based wealth management
services.


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    --  GPC's second quarter pre-tax earnings of $444 million were up
        39% from the year-ago quarter as net revenues increased 13%,
        to $2.4 billion. Compared with the second quarter of last
        year, GPC significantly increased its fee-based and recurring
        revenues, driven by higher asset values and net inflows into
        annuitized products. Commission revenues also increased
        meaningfully over the same period. GPC's pre-tax profit margin
        was 18.5%, up over three percentage points from the 2003
        second quarter. These results included an increase in credit
        provisions for small business lending and higher litigation
        costs. Compared with the 2004 first quarter, GPC's pre-tax
        earnings declined by 13% due primarily to lower
        transaction-based revenues and the provisions described above.

    --  Through competitive recruitment and new trainee hiring, GPC's
        Financial Advisor force grew by nearly 300, to 14,000
        globally. Year-to-date turnover of FA's, including
        top-producing FA's, remained at low levels.

    --  Total assets in GPC accounts increased 10% from the year-ago
        quarter, to $1.3 trillion. Net inflows into annuitized
        products, including net new money and funds transferred into
        annuitized products from existing accounts, were $8 billion
        during the quarter, bringing the year-to-date total to $22
        billion.

    --  GPC continues to expand its range of innovative products for
        clients, launching the new Merrill+(SM) VISA(R) credit card
        nationwide during the second quarter. Additionally, GPC's
        strong line-up of products and services was recognized by
        SmartMoney magazine which once again ranked Merrill Lynch #1
        "full-service broker" in its annual survey.

    --  For the first half of 2004, GPC's pre-tax earnings were $954
        million, up 68% from the year-ago period, on net revenues that
        rose 16%, to $4.9 billion. GPC's year-to-date pre-tax profit
        margin was 19.5%, up over six percentage points from the
        year-ago period.

    Merrill Lynch Investment Managers (MLIM)

    MLIM continued its strong earnings performance, posting its fifth
consecutive year-over-year improvement in quarterly earnings, and its
second strongest quarter in the past two years. MLIM is leveraging its
consistently strong investment performance and expanding the
distribution of its products while maintaining a disciplined,
efficient cost structure.

    --  MLIM's second quarter pre-tax earnings were $110 million, up
        77% from $62 million in the second quarter of 2003. Net
        revenues increased 18%, to $389 million, driven primarily by
        increased asset values and improvement in the mix of assets
        under management. The pre-tax profit margin was 28.3%, up
        nearly ten percentage points from 18.8% in the year-ago
        period.

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    --  MLIM's relative investment performance continues to exceed
        management's goals, with more than 70% of global assets under
        management ahead of their respective benchmarks or medians for
        the one-, three- and five-year periods ended May 2004.

    --  Assets under management totaled $488 billion at the end of the
        second quarter. The sequential decline was due principally to
        net outflows from U.S. institutional cash products as
        short-term interest rates rose, which more than offset net
        inflows to equity products.

    --  MLIM's first half pre-tax earnings were $221 million, more
        than double the prior-year period results, on net revenues
        that grew 20%, to $801 million. The year-to-date pre-tax
        profit margin was 27.6%, compared to 15.1% in the first half
        of 2003.

    Second Quarter Income Statement Review:

    Revenues

    Net revenues were $5.3 billion, up slightly from the year-ago
quarter.
    Asset management and portfolio service fees were $1.4 billion, up
18% from the 2003 second quarter. This increase includes higher
portfolio servicing fees, a large portion of which are calculated on
beginning-of-period asset values, as well as increased investment and
fund management fees.
    Commission revenues were $1.2 billion, up 14% from the second
quarter of 2003, due principally to higher mutual fund commissions.
    Principal transactions revenues were $630 million, 44% lower than
the year-ago quarter, reflecting significantly lower debt and equity
trading revenues, as many institutional investors chose to remain on
the sidelines amid uncertain markets for debt and equity trading.
Global Markets net revenues are better analyzed on an aggregate basis
by business; refer to Attachment III for further detail on GMI net
revenues.
    Net interest profit was $1.1 billion, up 9% from the 2003 second
quarter, in part reflecting increased secured lending activity,
partially offset by increased credit provisions in GPC small business
lending.


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    Investment banking revenues were $764 million, 9% higher than the
year-ago quarter. These revenues included underwriting revenues of
$622 million, up 10% from the year-ago quarter, primarily driven by
increased debt origination revenues. Strategic advisory revenues were
$142 million, 7% higher than the year-ago quarter, as merger and
acquisition activity increased.
    Other revenues were $308 million, up $29 million from the 2003
second quarter due principally to increased revenue from investments,
partially offset by lower realized gains on the sales of mortgages.

    Expenses

    On a year-to-date basis, compensation and benefits expenses were
49.5% of net revenues, down from 52.7% in the first half of 2003.
Compensation and benefits expenses were $2.6 billion, or 48.8% of net
revenues for the second quarter of 2004, compared to 52.2% in the
year-ago quarter.
    Overall, non-compensation expenses were $1.3 billion. Excluding
the impact of the net recovery related to September 11 in 2003,
non-compensation expenses were up 6% from the 2003 second quarter, but
down 3% from the 2004 first quarter.
    Details of the significant changes in non-compensation expenses
from the second quarter of 2003 are as follows:

    --  occupancy and related depreciation was $202 million, a decline
        of 9%;

    --  brokerage, clearing, and exchange fees were $214 million, up
        27% due in part to the acquisition of a clearing business;

    --  professional fees increased 16%, to $163 million, due
        principally to increased legal, consulting and recruitment
        fees;

    --  advertising and market development expenses were $132 million,
        up 17% due primarily to increased travel and promotional costs
        related to increased business activity; and

    --  other expenses were $195 million, up 7% due primarily to
        higher litigation provisions.


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    Merrill Lynch's year-to-date effective tax rate was 24.6%
reflecting the business mix and tax settlements in the second quarter.

    Staffing

    Merrill Lynch's full-time employees totaled 49,300 at the end of
the second quarter of 2004, a net increase of 1,100 during the
quarter. This increase primarily reflects the acquisitions completed
during the quarter as well as the continued hiring of Financial
Advisors.

    Stock Repurchase Plan

    As part of its active management of equity capital, Merrill Lynch
repurchased 21.8 million shares of its common stock during the second
quarter at an average price of $56.19 per share. Through the end of
the second quarter, Merrill Lynch had repurchased 30.0 million shares
at an average price of $57.57, utilizing $1.7 billion of the $2
billion originally authorized. The Board of Directors has today
authorized the repurchase of an additional $2 billion of Merrill
Lynch's outstanding common shares.

    Ahmass Fakahany, executive vice president and chief financial
officer, will host a conference call today at 10:00 a.m. EDT to
discuss the company's 2004 second quarter results. The conference call
can be accessed via a live audio webcast available through the
Investor Relations website at www.ir.ml.com or by dialing (888)
810-0245 (U.S. callers) or (706) 634-0180 (non-U.S. callers).
On-demand replay of the webcast will be available from approximately
1:00 p.m. EDT today at the same web address.


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    Merrill Lynch is one of the world's leading financial management
and advisory companies with offices in 35 countries and total client
assets of approximately $1.5 trillion. As an investment bank, it is a
leading global underwriter of debt and equity securities and strategic
advisor to corporations, governments, institutions, and individuals
worldwide. Through Merrill Lynch Investment Managers, the company is
one of the world's largest managers of financial assets, with assets
under management of $488 billion. For more information on Merrill
Lynch, please visit www.ml.com.

    Merrill Lynch may make or publish forward-looking statements about
management expectations, strategic objectives, business prospects,
anticipated expense levels and financial results, anticipated results
of litigation and regulatory proceedings, and other similar matters. A
variety of factors, many of which are beyond Merrill Lynch's control,
affect the operations, performance, business strategy and results of
Merrill Lynch and could cause actual results and experiences to differ
materially from the expectations and objectives expressed in these
statements. These factors include, but are not limited to, financial
market volatility, actions and initiatives by current and potential
competitors, the effect of current and future legislation or
regulation, and certain other additional factors described in Merrill
Lynch's 2003 Annual Report on Form 10-K and subsequent reports on Form
10-Q and Form 8-K, which are available on the Merrill Lynch Investor
Relations website at www.ir.ml.com and at the SEC's website,
www.sec.gov.

    Accordingly, readers are cautioned not to place undue reliance on
forward-looking statements, which speak only as of the date on which
they are made. Merrill Lynch does not undertake to update such
statements to reflect the impact of circumstances or events that arise
after the date these statements were made. Readers should, however,
consult any further disclosures Merrill Lynch may make in its reports
filed with the SEC.


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