Exhibit 99.2

Merrill Lynch & Co., Inc.     Attachment I
     
Preliminary Unaudited Earnings Summary
For the Three Months Ended Percent Inc / (Dec)
(in millions, except per share amounts)

Jun. 27,
2008

Mar. 28,
2008

Jun. 29
2007

2Q08 vs.
1Q08

2Q08 vs.
2Q07

 
Revenues
Principal transactions $ (4,083 ) $ (2,418 ) $ 3,556 N/M

%

N/M

%

Commissions 1,811 1,889 1,787 (4 ) 1
Managed accounts and other fee-based revenues 1,399 1,455 1,349 (4 ) 4
Investment banking 1,158 917 1,528 26 (24 )
Earnings from equity method investments 111 431 375 (74 ) (70 )

Other (1)

  (1,875 )   (1,449 )   387   N/M N/M
Subtotal (1,479 ) 825 8,982 N/M N/M
 
Interest and dividend revenues 7,535 11,861 14,447 (36 ) (48 )
Less interest expense   8,172     9,752     13,970   (16 ) (42 )
Net interest (loss)/profit   (637 )   2,109     477   N/M N/M
 
Revenues, net of interest expense   (2,116 )   2,934     9,459   N/M N/M
 
Non-interest expenses
Compensation and benefits 3,491 4,196 4,731 (17 ) (26 )
Communications and technology 566 555 482 2 17
Brokerage, clearing, and exchange fees 370 387 346 (4 ) 7
Occupancy and related depreciation 328 309 273 6 20
Professional fees 263 242 245 9 7
Advertising and market development 166 176 200 (6 ) (17 )
Office supplies and postage 55 57 56 (4 ) (2 )
Other 311 313 300 (1 ) 4
Restructuring charge   445     -     -   N/M N/M
 
Total non-interest expenses   5,995     6,235     6,633   (4 ) (10 )
 
Pre-tax (loss)/earnings from continuing operations (8,111 ) (3,301 ) 2,826 N/M N/M
 
Income tax (benefit)/expense   (3,477 )   (1,332 )   816   N/M N/M
 
Net (loss)/earnings from continuing operations   (4,634 )   (1,969 )   2,010   N/M N/M
 
Discontinued operations:
Pre-tax (loss)/earnings from discontinued operations (32 ) (25 ) 197 N/M N/M
Income tax (benefit)/expense   (12 )   (32 )   68   N/M N/M
Net (loss)/earnings from discontinued operations   (20 )   7     129   N/M N/M
 
Net (loss)/earnings $ (4,654 ) $ (1,962 ) $ 2,139   N/M N/M
 
Preferred stock dividends $ 237   $ 174   $ 72   36 229
 
Net (loss)/earnings applicable to common stockholders $ (4,891 ) $ (2,136 ) $ 2,067   N/M N/M
 
Basic (loss)/earnings per common share from continuing operations (4.95 ) (2.20 ) 2.32 N/M N/M
Basic (loss)/earnings per common share from discontinued operations   (0.02 )   0.01     0.16   N/M N/M
Basic (loss)/earnings per common share $ (4.97 ) $ (2.19 ) $ 2.48 N/M N/M
 
Diluted (loss)/earnings per common share from continuing operations (4.95 ) (2.20 ) 2.10 N/M N/M
Diluted (loss)/earnings per common share from discontinued operations   (0.02 )   0.01     0.14   N/M N/M
Diluted (loss)/earnings per common share $ (4.97 ) $ (2.19 ) $ 2.24 N/M N/M
 
Average shares used in computing earnings per common share
Basic 984.1 974.1 833.8 1 18
Diluted 984.1 974.1 923.3 1 7
 
Annualized return on average common equity from continuing operations
N/M N/M 21.0 %
Annualized return on average common equity N/M N/M 22.4 %
 
N/M = Not Meaningful
Note: Certain prior period amounts have been reclassified to conform to the current period presentation.
(1) Includes gains and losses on investment securities, private equity investments, loans and other miscellaneous items.
Merrill Lynch & Co., Inc.   Attachment II
   
Preliminary Unaudited Earnings Summary
For the Six Months Ended
(in millions, except per share amounts)

Jun. 27,
2008

Jun. 29
2007

Percent
Inc / (Dec)

 
Revenues
Principal transactions $ (6,501 ) $ 6,290 N/M

%

Commissions 3,700 3,500 6
Managed accounts and other fee-based revenues 2,854 2,633 8
Investment banking 2,075 3,038 (32 )
Earnings from equity method investments 542 684 (21 )

Other (1)

  (3,324 )   1,228   N/M
Subtotal (654 ) 17,373 N/M
 
Interest and dividend revenues 19,396 27,168 (29 )
Less interest expense   17,924     25,479   (30 )
Net interest profit   1,472     1,689   (13 )
 
Revenues, net of interest expense   818     19,062   (96 )
 
Non-interest expenses
Compensation and benefits 7,687 9,585 (20 )
Communications and technology 1,121 961 17
Brokerage, clearing, and exchange fees 757 656 15
Occupancy and related depreciation 637 538 18
Professional fees 505 471 7
Advertising and market development 342 355 (4 )
Office supplies and postage 112 115 (3 )
Other 624 654 (5 )
Restructuring charge   445     -   N/M
 
Total non-interest expenses   12,230     13,335   (8 )
 
Pre-tax (loss)/earnings from continuing operations (11,412 ) 5,727 N/M
 
Income tax (benefit)/expense   (4,809 )   1,687   N/M
 
Net (loss)/earnings from continuing operations   (6,603 )   4,040   N/M
 
Discontinued operations:
Pre-tax (loss)/earnings from discontinued operations (57 ) 391 N/M
Income tax (benefit)/expense   (44 )   134   N/M
Net (loss)/earnings from discontinued operations   (13 )   257   N/M
 
Net (loss)/earnings $ (6,616 ) $ 4,297   N/M
 
Preferred stock dividends $ 411   $ 124   231
 
Net (loss)/earnings applicable to common stockholders $ (7,027 ) $ 4,173   N/M
 
Basic (loss)/earnings per common share from continuing operations (7.17 ) 4.67 N/M
Basic (loss)/earnings per common share from discontinued operations   (0.01 )   0.31   N/M
Basic (loss)/earnings per common share $ (7.18 ) $ 4.98 N/M
 
Diluted (loss)/earnings per common share from continuing operations (7.17 ) 4.22 N/M
Diluted (loss)/earnings per common share from discontinued operations   (0.01 )   0.28   N/M
Diluted (loss)/earnings per common share $ (7.18 ) $ 4.50 N/M
 
Average shares used in computing earnings per common share
Basic 978.5 837.6 17
Diluted 978.5 926.8 6
 
Annualized return on average common equity from continuing operations
N/M 21.4 %
Annualized return on average common equity N/M 22.8 %
             
N/M = Not Meaningful
Note: Certain prior period amounts have been reclassified to conform to the current period presentation.
(1) Includes gains and losses on investment securities, private equity investments, loans and other miscellaneous items.
Merrill Lynch & Co., Inc.   Attachment III
             
 
Preliminary Segment Data (unaudited)
For the Three Months Ended

Percent Inc / (Dec)

For the Six Months Ended
Jun. 27, Mar. 28, Jun. 29, 2Q08 vs. 2Q08 vs. Jun. 27, Jun. 29,

Percent

(dollars in millions) 2008 2008 2007 1Q08 2Q07 2008 2007 Inc / (Dec)
 
Global Markets & Investment Banking
Global Markets
FICC $ (8,068 ) $ (3,378 ) $ 2,421 N/M

%

N/M

%

$ (11,446 ) $ 5,046 N/M

%

Equity Markets   1,727     1,883     2,148   (8 ) (20 )   3,610     4,534   (20 )
Total Global Markets net revenues (6,341 ) (1,495 ) 4,569 N/M N/M (7,836 ) 9,580 N/M
Investment Banking (1)
Origination:
Debt 367 231 471 59 (22 ) 598 1,057 (43 )

Equity

338 199 547 70 (38 ) 537 910 (41 )
Strategic Advisory Services   317     375     397   (15 ) (20 )   692     796   (13 )
Total Investment Banking net revenues   1,022     805     1,415   27 (28 )   1,827     2,763   (34 )
Total net revenues   (5,319 )   (690 )   5,984   N/M N/M   (6,009 )   12,343   N/M
 
Non-interest expenses before restructuring charge 2,929 3,357 4,047 (13 ) (28 ) 6,286 8,199 (23 )
 
Restructuring charge 311 - - N/M N/M 311 - N/M
 
Pre-tax (loss) / earnings from continuing operations (8,559 ) (4,047 ) 1,937 N/M N/M (12,606 ) 4,144 N/M
 
Pre-tax (loss) / earnings from continuing operations, before restructuring charge (8,248 ) (4,047 ) 1,937 N/M N/M (12,295 ) 4,144 N/M
 
Pre-tax profit margin N/M N/M 32.4 % N/M 33.6 %
 
Pre-tax profit margin, before restructuring charge     N/M       N/M       32.4 %             N/M       33.6 %    
 
Global Wealth Management
Global Private Client
Fee-based revenues $ 1,591 $ 1,625 $ 1,544 (2 ) 3 $ 3,216 $ 3,017 7
Transactional and origination revenues 897 926 1,015 (3 ) (12 ) 1,823 1,926 (5 )
Net interest profit and related hedges(2) 604 638 577 (5 ) 5 1,242 1,169 6
Other revenues   74     111     113   (33 ) (35 )   185     210   (12 )
Total Global Private Client net revenues   3,166     3,300     3,249   (4 ) (3 )   6,466     6,322   2
Global Investment Management net revenues   193     299     305   (35 ) (37 )   492     566   (13 )
Total net revenues   3,359     3,599     3,554   (7 ) (5 )   6,958     6,888   1
 
Non-interest expenses before restructuring charge 2,621 2,879 2,575 (9 ) 2 5,500 5,125 7
 
Restructuring charge 134 - - N/M N/M 134 - N/M
 
Pre-tax (loss) / earnings from continuing operations 604 720 979 (16 ) (38 ) 1,324 1,763 (25 )
 
Pre-tax (loss) / earnings from continuing operations, before restructuring charge 738 720 979 3 (25 ) 1,458 1,763 (17 )
 
Pre-tax profit margin 18.0 % 20.0 % 27.5 % 19.0 % 25.6 %
 
Pre-tax profit margin, before restructuring charge     22.0 %     20.0 %     27.5 %             21.0 %     25.6 %    
 
Corporate
Total net revenues $ (156 ) $ 25 $ (79 ) N/M N/M $ (131 ) $ (169 ) 22
 
Non-interest expenses before restructuring charge - (1 ) $ 11 N/M N/M (1 ) $ 11 N/M
 
Restructuring charge - - - N/M N/M - - N/M
 
Pre-tax (loss) / earnings from continuing operations     (156 )     26       (90 )   N/M     73       (130 )     (180 )   28  
 
Total
Total net revenues $ (2,116 ) $ 2,934 $ 9,459 N/M N/M $ 818 $ 19,062 (96 )
 
Non-interest expenses before restructuring charge 5,550 6,235 6,633 (11 ) (16 ) 11,785 13,335 (12 )
 
Restructuring charge 445 - - N/M N/M 445 - N/M
 
Pre-tax (loss) / earnings from continuing operations (8,111 ) (3,301 ) 2,826 N/M N/M (11,412 ) 5,727 N/M
 
 
Pre-tax profit margin     N/M       N/M       29.9 %             N/M       30.0 %    
 
 
Note: Certain prior period amounts have been reclassified to conform to the current period presentation.
(1) A portion of Origination revenue is recorded in Global Wealth Management.
(2) Includes interest component of non-qualifying derivatives which are included in Other Revenues in Attachment I and II.
Merrill Lynch & Co., Inc.   Attachment IV
         
 
Consolidated Quarterly Earnings (unaudited) (in millions, except per share amounts)
 
2Q07 3Q07 4Q07 1Q08 2Q08
Revenues
Principal transactions $ 3,556 $ (5,761 ) $ (12,596 ) $ (2,418 ) $ (4,083 )
Commissions
Listed and over-the-counter securities 1,195 1,279 1,294 1,319 1,221
Mutual funds 541 522 570 532 539
Other   51   59     60     38     51  
Total 1,787 1,860 1,924 1,889 1,811
Managed accounts and other fee-based revenues
Portfolio service fees 860 904 902 892 852
Asset management fees 152 150 179 206 198
Account fees 115 117 120 117 116
Other fees   222   221     239     240     233  
Total 1,349 1,392 1,440 1,455 1,399
Investment banking
Underwriting 1,130 895 717 543 841
Strategic advisory   398   382     550     374     317  
Total 1,528 1,277 1,267 917 1,158
Earnings from equity method investments 375 412 531 431 111
Other (1)   387   (1,114 )   (2,304 )   (1,449 )   (1,875 )
Subtotal 8,982 (1,934 ) (9,738 ) 825 (1,479 )
Interest and dividend revenues 14,447 15,636 14,170 11,861 7,535
Less interest expense   13,970   13,322     12,624     9,752     8,172  
Net interest profit 477 2,314 1,546 2,109 (637 )
 
         
Revenues, net of interest expense   9,459   380     (8,192 )   2,934     (2,116 )
 
Non-Interest Expenses
Compensation and benefits 4,731 1,979 4,339 4,196 3,491
Communications and technology 482 499 597 555 566
Brokerage, clearing, and exchange fees 346 364 395 387 370
Occupancy and related depreciation 273 295 306 309 328
Professional fees 245 245 311 242 263
Advertising and market development 200 181 249 176 166
Office supplies and postage 56 54 64 57 55
Other 300 401 467 313 311
Restructuring charge   -   -     -     -     445  
Total Non-Interest Expenses   6,633   4,018     6,728     6,235     5,995  
 
Pre-tax earnings/(loss) from continuing operations 2,826 (3,638 ) (14,920 ) (3,301 ) (8,111 )
Income tax expense/(benefit)   816   (1,258 )   (4,623 )   (1,332 )   (3,477 )
 
Net earnings/(loss) from continuing operations 2,010 (2,380 ) (10,297 ) (1,969 ) (4,634 )
 
Discontinued operations:
Pre-tax earnings/(loss) from discontinued operations 197 211 795 (25 ) (32 )
Income tax expense/(benefit)   68   72     331     (32 )   (12 )
Net (loss)/earnings from discontinued operations   129   139     464     7     (20 )
 
Net earnings/(loss) $ 2,139 $ (2,241 ) $ (9,833 ) $ (1,962 ) $ (4,654 )
 
                       
Per Common Share Data
2Q07 3Q07 4Q07 1Q08 2Q08
 
Earnings/(loss) from continuing operations - Basic $ 2.32 $ (2.99 ) $ (12.57 ) $ (2.20 ) $ (4.95 )
Earnings/(loss) from continuing operations - Diluted 2.10 (2.99 ) (12.57 ) (2.20 ) (4.95 )
Dividends paid 0.35 0.35 0.35 0.35 0.35
Book value 43.55 39.60 29.34 25.93 21.43 est.
                       
 
Note: Certain prior period amounts have been reclassified to conform to the current period presentation.
(1) Includes gains and losses on investment securities, private equity investments, loans and other miscellaneous items.
Merrill Lynch & Co., Inc.       Attachment V
   
 
Supplemental Data (unaudited) (dollars in billions)
 
2Q07 3Q07 4Q07 1Q08 2Q08
Client Assets
U.S. $ 1,550 $ 1,601 $ 1,586 $ 1,479 $ 1,447
Non - U.S.   153   161   165   158   158  
Total Client Assets 1,703 1,762 1,751 1,637 1,605
 
Assets in Annuitized-Revenue Products 662 691 655 607 630
                       
 
Net New Money
All Client Accounts (1) $ 9 $ 26 $ 30 $ 4 $ (5 )
 
Annuitized-Revenue Products (1) (2) 12 10 - 9 8
                       
 
Balance Sheet Information: (3)
Short-term Borrowings $ 20.1 $ 27.1 $ 24.9 $ 21.6 $

19.1

Deposits 82.8 95.0 104.0 104.8

100.5

Long-term Borrowings 226.0 264.9 261.0 259.5 270.4
Junior Subordinated Notes (related to trust preferred securities) 4.4 5.2 5.2 5.2 5.2
 
Stockholders' Equity: (3)
Preferred Stockholders' Equity 4.6 4.8 4.4 11.0 13.7
Common Stockholders' Equity   37.6   33.8   27.5   25.5   21.1  
Total Stockholders' Equity 42.2 38.6 31.9 36.5 34.8
                       
 
Full-Time Employees (4) 61,900 64,200 64,200 63,100 60,000
 
Financial Advisors 16,200 16,610 16,740 16,660 16,690
                       
 
Common shares outstanding (in millions):
Weighted-average - basic 833.8 821.6 825.0 974.1 984.1
Weighted-average - diluted 923.3 821.6 825.0 974.1 984.1
  Period-end     862.6     855.4     939.1     985.1     985.4  
 
Note: Certain prior period amounts have been reclassified to conform to the current period presentation.
 
(1) Net new money excludes flows associated with the Institutional Advisory Division which serves certain small- and middle-market companies, as well as net inflows at BlackRock from distribution channels other than Merrill Lynch.
 
(2) Includes both net new client assets into annuitized-revenue products, as well as existing client assets transferred into annuitized-revenue products.
 
(3) Balance Sheet Information and Stockholders' Equity are estimated for 2Q08.
 
(4) Excludes 300 full-time employees on salary continuation severance at the end of 2Q07, 400 at the end of 3Q07, 700 at the end of 4Q07, 900 at the end of 1Q08 and 2,800 at the end of 2Q08.
Merrill Lynch & Co., Inc.   Attachment VI
       
 
 
(Unaudited) (dollars in millions)
 
Net

exposures as

of Mar. 28,

2008

  Net gains/(losses) reported in income (1)   Other net changes in net exposures (2)   Net

exposures as

of Jun. 27,

2008

  Percent Inc/(Dec)
U.S. ABS CDO net exposures and losses:
U.S. super senior ABS CDO net exposures and losses:
High-grade $ 4,121 $ (2,933 ) $ 1,266 $ 2,454
Mezzanine 2,249 (515 ) (89 ) 1,645
CDO-squared   187     (11 )     (43 )     133
Total super senior ABS CDO net exposures and losses 6,557 (3,459 ) 1,134 4,232
Secondary trading   114     (33 )     146       227
Total (3)(4) $ 6,671   $ (3,492 )   $ 1,280     $ 4,459 (33 )%
 
(1) Amounts exclude credit valuation adjustments of negative $1.4 billion for the 2008 second quarter ($6.2 billion life-to-date) related to financial guarantor exposures on U.S. super senior ABS CDOs. See table below regarding financial guarantor exposures.
(2) Primarily consists of hedge ineffectiveness, transactions executed, and amortization during the period.
(3) Hedges are affected by a variety of factors that impact the degree of their effectiveness. These factors may include differences in attachment point, timing of cash flows, control rights, litigation, the creditworthiness of the counterparty, limited recourse to counterparties and other basis risks.
(4)

For total U.S. super senior ABS CDOs, long exposures (including associated net gains and losses reported in income and other net changes in net exposures) were $19.9 billion and $26.3 billion at June 27, 2008 and March 28, 2008, respectively. Short exposures (including associated net gains and losses reported in income and other net changes in net exposures) were $15.6 billion and $19.8 billion at June 27, 2008 and March 28, 2008, respectively. Short exposures primarily consist of purchases of credit default swap protection from various third parties, including monoline financial guarantors, insurers and other market participants.

  Financial Guarantors Exposure on U.S. Super Senior ABS CDOs as of June 27, 2008
Notional of

CDS (1)

  Notional of CDS, net of gains prior to credit valuation adjustments (2)   Mark-to-market gains prior

to credit valuation adjustments (3)

  Credit

valuation adjustments (4)

  Mark-to-market value of CDS
Credit default swaps (CDS) with financial guarantors:        
By counterparty credit quality:(5)
AAA $ - $ - $ - $ - $ -
AA (6,726 ) (4,667 ) 2,059 (721 ) 1,338
A (1,598 )

(334

)

1,264

(758 )

506

BBB (3,741 )

(1,170

)

2,571

(1,542 )

1,029

Non-investment grade or unrated   (6,632 )     (3,428 )     3,204     (3,204 )     -
Total $ (18,697 )   $ (9,599 )   $ 9,098   $ (6,225 )   $ 2,873
 
(1)

The gross notional amount of CDS purchased as protection for U.S. super senior ABS CDOs was $18.7 billion and $18.8 billion at June 27, 2008, and March 28, 2008, respectively. This decline was due to amortization of the underlying reference entities on the CDS. Amounts do not include exposure with financial guarantors for other asset classes.

(2) The notional of the total CDS, net of gains prior to credit valuation adjustments, was $9.6 billion and $10.9 billion at June 27, 2008 and March 28, 2008, respectively.
(3) Represents life-to-date mark-to-market gains prior to credit valuation adjustments. Balance was $9.1 billion and $7.8 billion as of June 27, 2008 and March 28, 2008, respectively.
(4) Represents life-to-date credit valuation adjustments. Balance was $6.2 billion and $4.8 billion as of June 27, 2008 and March 28, 2008, respectively.
(5)

Represents S&P credit rating bands as of June 27, 2008.

Merrill Lynch & Co., Inc.  

Attachment VII

       
 
 
(Unaudited)

(dollars in millions)

 
Net

exposures as

of Mar. 28,

2008

  Net gains/(losses) reported in income   Other net changes in net

exposures (1)

  Net

exposures as

of Jun. 27,

2008

  Percent Inc/(Dec)
Residential Mortgage-Related

(excluding U.S. Banks investment securities portfolio):

 
U.S. Prime (2) $ 30,750   $ 67     $ 2,901     $ 33,718 10 %
 
Other Residential:
U.S. Sub-prime 1,435 (544 ) 121 1,012 (29 )%
U.S. Alt-A 3,172 (549 ) (1,081 ) 1,542 (51 )%
Non-U.S.   8,769     (229 )     (1,092 )     7,448 (15 )%
Total Other Residential (3) $ 13,376   $ (1,322 )   $ (2,052 )   $ 10,002 (25 )%
 
(1) Represents purchases, sales, hedges, paydowns, changes in loan commitments and related funding.
(2) As of June 27, 2008, net exposures include approximately $29 billion of prime loans originated with GWM clients (of which $13 billion were originated by First Republic Bank).
(3) Includes warehouse lending, whole loans, residuals and residential mortgage-backed securities.
  Net

exposures as

of Mar. 28,

2008

  Net gains/(losses) reported in income (1)   Unrealized

gains/(losses) included in OCI (pre-tax) (2)

  Other net changes in net exposures (3)   Net

exposures as

of Jun. 27,

2008

  Percent Inc/(Dec)
U.S. Banks Investment Securities Portfolio:          

Sub-prime residential mortgage-backed securities

$ 3,327 $ (91 ) $ (212 ) $ (123 ) $ 2,901

Alt-A residential mortgage-backed securities

5,330 (1,378 ) 601 (215 ) 4,338
Commercial mortgage-backed securities 5,088 13 270 5 5,376
Prime residential mortgage-backed securities 3,580 (211 ) 82 (337 ) 3,114
Non-residential asset-backed securities 988 (7 ) 2 (152 ) 831
Non-residential CDOs 770 (1 ) (20 ) (4 ) 745
Agency residential asset-backed securities 532 2 - (29 ) 505
Other   229     -       2       (5 )     226
Total $ 19,844   $ (1,673 )   $ 725     $ (860 )   $ 18,036 (9 )%
 

(1)

Includes the impairment in the value of certain securities deemed to be other than temporary.

(2)

Represents the reclassification of approximately $1.7 billion in pre-tax losses out of other comprehensive (loss)/income ("OCI"), partially offset by an additional $979

million pre-tax loss recorded in OCI. The cumulative, pre-tax balance in OCI related to this portfolio was approximately negative $4.7 billion as of June 27, 2008.

(3)

Primarily represents principal paydowns and sales.

  Net

exposures as

of Mar. 28,

2008

  Net gains/(losses) reported in income   Other net changes in net exposures (1)   Net

exposures as

of Jun. 27,

2008

  Percent Inc/(Dec)
Commercial Real Estate:        
Whole Loans/Conduits $ 9,750 $ 30 $ (1,908 ) $ 7,872
Securities and Derivatives 960 (61 ) (324 ) 575
Real Estate Investments (2)   7,288     (6 )     (828 )     6,454
Total Commercial Real Estate, excluding First Republic Bank $ 17,998   $ (37 )   $ (3,060 )   $ 14,901 (17 )%
 
First Republic Bank $ 2,586   $ 22     $ 62     $ 2,670 3 %
 

(1)

Primarily represents sales, repayments and the cancellation of unfunded commitments.

(2)

The Company makes equity and debt investments in entities whose underlying assets are real estate. The Company consolidates those entities in which we are the primary beneficiary in accordance with FIN No. 46-R, Consolidation of Variable Interest Entities (revised December 2003)—an interpretation of ARB No. 51. The Company does not consider itself to have economic exposure to the total underlying assets in those entities. The amounts presented are the Company’s net investment and therefore exclude the amounts that have been consolidated but for which the Company does not consider itself to have economic exposure.

Merrill Lynch & Co., Inc.        

Attachment VIII

       
 
 
Revenue Reconciliation (Non-GAAP Measures)
(dollars in millions)
 
The following table provides the calculation of Merrill Lynch's net revenues excluding certain adjustments. While these amounts are considered non-GAAP measures, management believes that it is relevant in assessing the quality of our financial performance, identifying trends in our results and providing more meaningful period-to-period comparisons.
 
For the Three Months Ended Percent Inc / (Dec) For the Six Months Ended
Jun. 27, Mar. 28, Jun. 29, 2Q08 vs. 2Q08 vs. Jun. 27, Jun. 29, Percent
2008 2008 2007 1Q08 2Q07 2008 2007 Inc/(Dec)
GMI:
FICC
GAAP revenues, net of interest expense $ (8,068 ) $ (3,378 ) $ 2,421 $ (11,446 ) $ 5,046
Net losses / (gains) as follows:
U.S. ABS CDOs 3,492 1,472 36 4,964 101
Leveraged finance commitments write-downs 348 927 - 1,275 -
Residential mortgage-related exposures 1,255 782 241 2,037 619
U.S. Banks investment securities portfolio 1,673 421 (15 ) 2,094 (42 )
Commercial real estate   15     (53 )   (304 )   (38 )   (695 )
Total net losses / (gains) 6,783 3,549 (42 ) 10,332 (17 )
 
Credit valuation adjustments ("CVA") related to hedges with financial guarantors
2,888 3,031 - 5,919 -
 
Net effect due to change in Merrill Lynch credit spreads on certain long-term debt liabilities
  (98 )   (1,379 )   (8 )   (1,477 )   15  
 
Adjusted revenues, net of interest expense 1,505 1,823 2,371 (17 )% (37 )% 3,328 5,044 (34 )%
 
Equity Markets
GAAP revenues, net of interest expense 1,727 1,883 2,148 3,610 4,534
Net losses / (gains) - - - - -
CVA related to hedges with financial guarantors - - - - -
Effect of Merrill Lynch credit spreads   -     (695 )   (20 )   (695 )   (34 )
Adjusted revenues, net of interest expense 1,727 1,188 2,128 45 % (19 )% 2,915 4,500 (35 )%
 
Investment Banking
GAAP revenues, net of interest expense 1,022 805 1,415 1,827 2,763
Net losses / (gains) - - - - -
CVA related to hedges with financial guarantors - - - - -
Effect of Merrill Lynch credit spreads   -     -     -     -     -  
Adjusted revenues, net of interest expense 1,022 805 1,415 27 % (28 )% 1,827 2,763 (34 )%
 
Total GMI
GAAP revenues, net of interest expense (5,319 ) (690 ) 5,984 (6,009 ) 12,343
Net losses / (gains) 6,783 3,549 (42 ) 10,332 (17 )
CVA related to hedges with financial guarantors 2,888 3,031 - 5,919 -
Effect of Merrill Lynch credit spreads   (98 )   (2,074 )   (28 )   (2,172 )   (19 )
Adjusted revenues, net of interest expense 4,254 3,816 5,914 11 % (28 )% 8,070 12,307 (34 )%
 
GWM
GAAP revenues, net of interest expense 3,359 3,599 3,554 6,958 6,888
Net losses / (gains) - - - - -
CVA related to hedges with financial guarantors - - - - -
Effect of Merrill Lynch credit spreads   7     (29 )   -     (22 )   -  
Adjusted revenues, net of interest expense 3,366 3,570 3,554 (6 )% (5 )% 6,936 6,888 1 %
 
Corporate
GAAP revenues, net of interest expense (156 ) 25 (79 ) (131 ) (169 )
Net losses / (gains) - - - - -
CVA related to hedges with financial guarantors - - - - -
Effect of Merrill Lynch credit spreads   -     -     -     -     -  
Adjusted revenues, net of interest expense (156 ) 25 (79 ) N/M N/M (131 ) (169 ) N/M
 
Total
GAAP revenues, net of interest expense (2,116 ) 2,934 9,459 818 19,062
Net losses / (gains) 6,783 3,549 (42 ) 10,332 (17 )
CVA related to hedges with financial guarantors 2,888 3,031 - 5,919 -
Effect of Merrill Lynch credit spreads   (91 )   (2,103 )   (28 )   (2,194 )   (19 )
Adjusted revenues, net of interest expense $ 7,464   $ 7,411   $ 9,389   1 % (21 )% $ 14,875   $ 19,026   (22 )%
                                   
N/M = Not Meaningful
Merrill Lynch & Co., Inc.     Attachment IX
 
 
 
Book Value and Equity Capital Reconciliation (Non-GAAP Measures)
(dollars in billions except per share amounts, shares in millions)
 
 
Book Value Per Common Share (estimate)
 
During the first quarter of 2008, Merrill Lynch issued 66,000 shares of 9% mandatory convertible preferred stock for an aggregate purchase price of $6.6 billion to the Korea Investment Corporation, Kuwait Investment Authority and Mizuho Corporate Bank. The following table provides the calculation of Merrill Lynch's equity book value per share to investors adjusted for this offering on an "if-converted" basis. While this adjusted amount is considered a non-GAAP measure, management believes it is a useful presentation of the capital position of the firm, as the mandatory convertible preferred securities must convert to common shares by October 15, 2010.
 
 

Adjustment for

Convertible Preferred

on an "if-converted" Basis

Adjusted on an
As of

at $52.40 (1)

"if-converted"
Jun. 27, 2008

Per Share

Basis
 
 
Common Stockholders' Equity $ 21.1 $ 6.6 $ 27.7
Preferred Stock   13.7   (6.6 )   7.1
Total Stockholders' Equity $ 34.8 $ - $ 34.8
 
Common Shares Outstanding 985.4 126.0 1,111.3
 
Book Value Per Common Share $ 21.43   N/A
 
Adjusted Book Value Per Common Share (2)   N/A $ 24.94
 
 
             
 
Equity Capital (estimate)
 
The following table provides the calculation of Merrill Lynch's total equity capital, which includes total stockholders' equity and trust preferred securities. Merrill Lynch defines equity capital more broadly than stockholders' equity under U.S. GAAP, as the firm includes other capital instruments with equity-like characteristics such as trust preferred securities that have long-dated maturities or are perpetual.
 
As of
Jun. 27, 2008
 
Total Stockholders' Equity $ 34.8
Add Trust Preferred Securities   4.7
Total Equity Capital $ 39.5
 
             

(1) $52.40 is the "Reference Stock Price" or minimum conversion price at maturity. The maximum conversion price at maturity is $61.30. See the press release dated January 15th, 2008 and term sheet on the investor relations website at www.ir.ml.com for further information about the terms of these securities.

(2) Adjusted book value per common share is calculated by dividing: (A) common stockholders' equity after giving effect for conversion of convertible preferred on an "if-converted" basis at $52.40 per share by (B) common shares outstanding adjusted for such conversion.

CONTACT:
Merrill Lynch
Media Relations:
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jessica_oppenheim@ml.com
or
Investor Relations:
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investor_relations@ml.com