Merrill Lynch & Co., Inc.
		Ÿ        3-to-1 return if the Basket decreases, subject to a cap of 16% - 20%   Ÿ        A maturity of approximately 14 months   Ÿ        1-to-1 loss up to the public offering price per unit if the Basket increases above a 10% buffer.   Ÿ        Not listed on any securities exchange   Ÿ        No periodic payment of interest

The Notes will have the terms specified in this preliminary term sheet as supplemented by the documents indicated herein under “Additional Note Terms” (together the “Note Prospectus”). Investing in the Notes involves a number of risks. See “ Risk Factors” on page TS-5 of this term sheet and beginning on page PS-4 of product supplement ARNB-1.

Neither the Securities and Exchange Commission nor any state securities commission has approved or disapproved of these securities or determined if this Note Prospectus is truthful or complete. Any representation to the contrary is a criminal offense.

*Depending on the date the Notes are priced for initial sale to the public (the “Pricing Date”), which may be in August or September, the settlement date may occur in August or September and the maturity date may occur in October or November. Any reference in this term sheet to the month in which the settlement date or maturity date will occur is subject to change as specified above.

Merrill Lynch & Co.

August     , 2007

		Linked to the Mortgage Finance Basket Due October     , 2008

Summary

The Accelerated Return Bear Market Notes Linked to the Mortgage Finance Basket due October     , 2008 (the “Notes”) are senior, unsecured debt securities of Merrill Lynch & Co., Inc. that provide a leveraged return for investors, subject to a cap, if the value of a basket consisting of eighteen common stocks (the “Basket Component Stocks” and together, the “Basket”) of companies engaged in the mortgage finance industry (the “Underlying Companies”) decreases moderately from the Starting Value of the Basket, determined on the Pricing Date to the Ending Value of the Basket determined on valuation dates shortly prior to the Maturity Date of the Notes. Investors must be willing to forego interest payments on the Notes and willing to accept a repayment that may be less, and potentially significantly less, than the original public offering price of the Notes if the value of the Basket decreases.

		Linked to the Mortgage Finance Basket Due October     , 2008

Hypothetical Payout Profile

		This graph reflects the hypothetical returns on the Notes, assuming a Capped Value of 18%, the midpoint of the range of 16% and 20%. The red line reflects the hypothetical returns on the Notes, while the blue line reflects the hypothetical return of an investment in the Basket, excluding dividends.   This graph has been prepared for purposes of illustration only. Your actual return will depend on the actual Ending Value, Capped Value and the term of your investment.

Hypothetical Payments at Maturity

Examples

Set forth below are four examples of payment at maturity calculations, assuming a Starting Value of 100 and a Capped Value of $11.80, the midpoint of the range of $11.60 and $12.00.

Example 1—The hypothetical Ending Value is 130% of the Starting Value:

Starting Value: 100

Hypothetical Ending Value: 130

Hypothetical Threshold Value: 110

Payment at maturity (per unit) = $8.00

Example 2—The hypothetical Ending Value is 105% of the Starting Value (less than the Threshold Value):

Starting Value: 100

Hypothetical Ending Value: 105

Hypothetical Threshold Value: 110

Payment at maturity (per unit) = $8.00

Example 3—The hypothetical Ending Value is 97% of the Starting Value:

Starting Value: 100

Hypothetical Ending Value: 97

Payment at maturity (per unit) = $10.90

Example 4—The hypothetical Ending Value is 70% of the Starting Value:

Starting Value: 100

Hypothetical Ending Value: 70

Payment at maturity (per unit) = $11.80 (Payment at maturity cannot be greater than the Capped Value)

		Linked to the Mortgage Finance Basket Due October     , 2008

The following table illustrates, for a Starting Value of 100 and a range of hypothetical Ending Values of the Basket:

The table below assumes a Capped Value of $11.80, the midpoint of the range of $11.60 and $12.00.

The above figures are for purposes of illustration only. The actual amount received by you and the resulting total and pretax annualized rates of return will depend on the actual Ending Value, Capped Value and term of your investment.

		Linked to the Mortgage Finance Basket Due October     , 2008

Risk Factors

An investment in the Notes involves significant risks. The following is a list of certain of the risks involved in investing in the Notes. You should carefully review the more detailed explanation of risks relating to the Notes in the “Risk Factors” sections included in the product supplement and MTN prospectus supplement identified below under “Additional Note Terms”. We also urge you to consult your investment, legal, tax, accounting and other advisers before you invest in the Notes.

Risk Factor Specific to the Basket

The stocks included in the Basket are concentrated in one industry

All of the Underlying Companies that issue the Basket Component Stocks are concentrated in the mortgage finance industry. As a result, the stocks that will determine the performance of the Notes are concentrated in one industry. Although an investment in the Notes will not give holders any ownership or other direct interests in the Basket Component Stocks, the return on an investment in the Notes will be subject to many of the risks associated with direct equity investments in the mortgage finance industry.

Investor Considerations

		Linked to the Mortgage Finance Basket Due October     , 2008

Other Provisions

We may deliver the Notes against payment therefor in New York, New York on a date that is in excess of three business days following the Pricing Date. Under Rule 15c6-1 of the Securities Exchange Act of 1934, trades in the secondary market generally are required to settle in three business days, unless the parties to any such trade expressly agree otherwise. Accordingly, if the initial settlement on the Notes occurs more than three business days from the Pricing Date, purchasers who wish to trade Notes more than three business days prior to the original issue date will be required to specify alternative settlement arrangements to prevent a failed settlement.

“Closing Market Price” means:

If a Basket Component Stock (or any other security for which a Closing Market Price must be determined for purposes of the Notes) is listed or admitted for trading on a national securities exchange in the United States registered under the Exchange Act (“registered national securities exchange”), is included in the OTC Bulletin Board Service (“OTC Bulletin Board”) operated by the National Association of Securities Dealers, Inc. (the “NASD”), or is quoted on a United States quotation medium or inter-dealer quotation system (e.g., the Pink Sheets), then the Closing Market Price for any date of determination on any Basket Business Day means for one Basket Component Stock (or any other security for which a Closing Market Price must be determined for purposes of the Notes):

If a Basket Component Stock (or any other security for which a Closing Market Price must be determined for purposes of the Notes) is not listed on a registered national securities exchange or is not included in the OTC Bulletin Board or is not quoted on any other United States quotation medium or inter-dealer system, then the Closing Market Price for any date of determination on any Basket Business Day means for one Basket Component Stock (or any other security for which a Closing Market Price must be determined for purposes of the Notes) the U.S. dollar equivalent of the last reported sale price (as determined by the Calculation Agent in its reasonable judgment) on that day on a foreign securities exchange on which that security is listed or admitted to trading with the greatest volume of trading for the calendar month preceding that Basket Business Day as determined by the Calculation Agent; provided that if the last reported sale price is for a transaction which occurred more than four hours prior to the close of that foreign exchange, then the Closing Market Price will mean the U.S. dollar equivalent (as determined by the calculation agent in its reasonable judgment) of the average of the last available bid and offer price on that foreign exchange.

If a Basket Component Stock (or any other security for which a Closing Market Price must be determined for purposes of the Notes) is not listed on a registered national securities exchange, is not included in the OTC Bulletin Board, is not quoted on any other United States quotation medium or inter-dealer quotation system, is not listed or admitted to trading on any foreign securities exchange or if the last reported sale price or bid and offer is not obtainable, then the Closing Market Price will mean the average of the last available purchase and sale prices in the market of the three dealers which have the highest volume of transactions in that security in the immediately preceding calendar month as determined by the Calculation Agent based on information that is reasonably available to it.

If the Exchange Property, as defined below under “—Reorganization Events” in this term sheet, includes securities other than the Basket Component Stocks, then the above definition will be revised to include each of those securities in the same manner as the Basket Component Stocks are considered in determining whether a Market Disruption Event exists.

The occurrence of a Market Disruption Event could affect the calculation of the Ending Value.

Multiplier Adjustments

Each Multiplier is subject to adjustment by the Calculation Agent as described in this section.

No adjustments to a Multiplier will be required unless the Multiplier adjustment would require a change of at least 0.1% in the Multiplier then in effect. The Multiplier resulting from any of the adjustments specified below will be rounded to the eighth decimal place with five one-billionths being rounded upward. The Calculation Agent will not be required to make any adjustments to a Multiplier after the close of business on the fourth Business Day immediately prior to the maturity date.

No adjustments to a Multiplier will be required other than those specified below. However, the Calculation Agent may, at its sole discretion, make additional adjustments to a Multiplier to reflect changes occurring in relation to the Basket Component Stocks or any other security received in a reorganization event in other circumstances where the Calculation Agent determines that it is appropriate to reflect those changes to ensure an equitable result. The required adjustments specified below do not cover all events that could affect the Closing Market Price of the Basket Component Stocks, including, without limitation, a partial tender or exchange offer for the Basket Component Stocks.

MLPF&S as Calculation Agent will be solely responsible for the determination and calculation of any adjustments to a Multiplier and of any related determinations and calculations with respect to any distributions of stock, other securities or other property or assets, including cash, in connection with any corporate event described below; and its determinations and calculations will be conclusive absent a determination of a manifest error.

		Linked to the Mortgage Finance Basket Due October     , 2008

No adjustments will be made for certain other events, such as offerings of common stock by the relevant Underlying Company for cash or in connection with the occurrence of a partial tender or exchange offer for the Basket Component Stocks by the relevant Underlying Company.

ML&Co. will, within ten Business Days following the occurrence of an event that requires an adjustment to a Multiplier, or, if later, within ten Business Days following the date on which ML&Co. becomes aware of this occurrence, provide written notice to the trustee, which will provide notice to the holders of the Notes of the occurrence of this event and a statement in reasonable detail setting forth the adjusted Multiplier.

Stock splits and reverse stock splits

If a Basket Component Stock is subject to a stock split or reverse stock split, then once any split has become effective, its Multiplier will be adjusted to equal the product of its prior Multiplier and the number of shares which a holder of record of one such Basket Component Stock before the effective date of that stock split or reverse stock split would have owned immediately following the applicable effective date.

Stock dividends

If a Basket Component Stock is subject to a (i) stock dividend, i.e., issuance of additional shares of that Basket Component Stock, that is given ratably to all holders of record of that Basket Component Stock or (ii) distribution of shares of that Basket Component Stock as a result of the triggering of any provision of the corporate charter of the related Underlying Company, then, once the dividend has become effective and the Basket Component Stock is trading ex-dividend, its Multiplier will be adjusted so that its new Multiplier will equal its prior Multiplier plus the product of:

Extraordinary Dividends

There will be no adjustments to a Multiplier to reflect any cash dividends or cash distributions paid with respect to the Basket Component Stocks other than Extraordinary Dividends, as described below, and distributions described under the section entitled “—Reorganization Events” below.

An “Extraordinary Dividend” means, with respect to a cash dividend or other distribution with respect to a Basket Component Stock, a dividend or other distribution which exceeds the immediately preceding non-Extraordinary Dividend on the Basket Component Stock (as adjusted for any subsequent corporate event requiring an adjustment hereunder, such as a stock split or reverse stock split) by an amount equal to at least 10% of the Closing Market Price of the Basket Component Stock on the Basket Business Day preceding the ex-dividend date with respect to the Extraordinary Dividend (the “ex-dividend date”). If an Extraordinary Dividend occurs with respect to a Basket Component Stock, its Multiplier will be adjusted on the ex-dividend date with respect to the Extraordinary Dividend so that the new Multiplier will equal the product of:

The “Extraordinary Dividend Amount” with respect to an Extraordinary Dividend for a Basket Component Stock will equal:

To the extent an Extraordinary Dividend is not paid in cash, the value of the non-cash component will be determined by the Calculation Agent, whose determination will be conclusive. A distribution on a Basket Component Stock described in clause (a), (d) or (e) of the section entitled “—Reorganization Events” below that also constitutes an Extraordinary Dividend will only cause an adjustment pursuant to clause (a), (d) or (e) under the section entitled “—Reorganization Events”. A distribution on a Basket Component Stock described in the section entitled “—Issuance of transferable rights or warrants” that also constitutes an Extraordinary Dividend will only cause an adjustment pursuant to that section.

Issuance of transferable rights or warrants

If an Underlying Company issues transferable rights or warrants to all holders of record of its related Basket Component Stock to subscribe for or purchase that Basket Component Stock, including new or existing rights to purchase the Basket Component Stock pursuant to a shareholder’s rights plan or arrangement, then its Multiplier will be adjusted on the Business Day immediately following the issuance of those transferable rights or warrants so that its new Multiplier will equal its prior Multiplier plus the product of:

The number of shares that can be purchased will be based on the Closing Market Price of a Basket Component Stock on the date its new Multiplier is determined. The cash value of those warrants or rights, if the warrants or rights are traded on a national securities exchange, will equal the closing price of that warrant or right, or, if the warrants or rights are not traded on a national securities exchange, will be determined by the Calculation Agent and will equal the average of the bid prices obtained from three dealers at 3 p.m. on the date the new Multiplier is determined, provided that if only two of those bid prices are available, then the cash value of those warrants or rights will equal the average of those bids and if only one of those bids is available, then the cash value of those warrants or rights will equal that bid.

Reorganization Events

		Linked to the Mortgage Finance Basket Due October     , 2008

then the method of determining the amount payable on each Notes will be adjusted as set forth below.

“Exchange Property” will consist of the securities, cash or any other assets distributed to holders of record of the Basket Component Stocks in or as a result of the Reorganization Event, and where Basket Component Stocks continue to be held by the holders receiving such distribution, the Basket Component Stocks.

If the Exchange Property received in a Reorganization Event

In the event Exchange Property consists of securities, those securities will, in turn, be subject to the antidilution adjustments set forth in this pricing supplement.

In the case of a consummated tender or exchange offer or going-private transaction involving Exchange Property of a particular type, Exchange Property will be deemed to include the amount of cash or other property paid by the offeror in the tender or exchange offer with respect to that Exchange Property (in an amount determined on the basis of the rate of exchange in that tender or exchange offer or going-private transaction). In the event of a tender or exchange offer or a going-private transaction with respect to Exchange Property in which an offeree may elect to receive cash or other property, Exchange Property will be deemed to include the kind and amount of cash and other property received by offerees who elect to receive cash.

MLPF&S as Calculation Agent will be solely responsible for determination and calculation of the Exchange Property if a Reorganization Event occurs and the amount due upon early redemption, including the determination of the cash value of any Exchange Property, if necessary, and its determinations and calculations will be conclusive absent a determination of a manifest error.

Alternative Dilution and Reorganization Adjustments

The Calculation Agent may elect at its discretion to not make any of the adjustments to a Multiplier or to the method of determining the amount payable on each Note described above under “—Multiplier Adjustments” and “—Reorganization Events”, but may instead make adjustments in its discretion to a Multiplier or the method of determining the amount payable on each Notes that will reflect the adjustments to the extent practicable made by the Options Clearing Corporation on options contracts on the Basket Component Stocks or any successor common stock. ML&Co. will provide notice of that election to the trustee not more than two Business Days following the date that the Options Clearing Corporation publishes notice of its adjustments relating to the Basket Component Stocks and will detail in that notice the actual adjustment made to that Multiplier or to the method of determining the amount payable on each Notes.

		Linked to the Mortgage Finance Basket Due October     , 2008

The Basket

The Mortgage Finance Basket

The Basket is designed to allow investors to participate in the percentage changes in the prices of the Basket Component Stocks from the Starting Value to the Ending Value of the Notes. The Basket Component Stocks are listed below, and additional detail regarding each Basket Component Stock can be found in Annex A to this term sheet. Each Basket Component Stock will be assigned an initial weighting so that each Basket Component Stock represents a portion of the value of the Basket on the Pricing Date.

The Basket was developed to represent the mortgage finance industry using certain liquidity and maximum weight constraints. The Basket Component Stocks underlying the Basket were selected based on the following criteria:

The Basket Component Stocks were given a weighting determined on July 30, 2007 based on the 3-month average daily trading volume of each Basket Component Stock, with a maximum weight of 15%.

The Underlying Companies have no obligations relating to the Notes or amounts to be paid to you, including any obligation to take the needs of ML&Co. or of holders of the Notes into consideration for any reason. The Underlying Companies will not receive any of the proceeds of the offering of the Notes and are not responsible for, and have not participated in, the offering of the Notes and are not responsible for, and will not participate in, the determination or calculation of the amount receivable by holders of the Notes.

Determination of the Multiplier for each Basket Component Stock

A fixed factor (the “Multiplier”) will be determined for each Basket Component Stock, based upon the weighting of that Basket Component Stock. The Multiplier for each Basket Component Stock will be calculated on the Pricing Date and will equal:

The Multipliers will be calculated in this way so that the value of the Basket equals 100 on the Pricing Date. The Multipliers for each Component Stock are listed under “—Computation of the Basket” below.

Computation of the Basket

The Calculation Agent will calculate the value of the Basket by summing the products of the Closing Market Price for each Basket Component Stock on the Calculation Days and the Multiplier applicable to each Basket Component Stock. The value of the Basket will vary based on the increase or decrease in the price of each Basket Component Stock. Any increase in the price of a Basket Component Stock (assuming no change in the prices of the other Basket Component Stocks) will result in an increase in the value of the Basket. Conversely, any decrease in the price of a Basket Component Stock (assuming no change in the prices of the other Basket Component Stocks) will result in a decrease in the value of the Basket. If a Reorganization Event occurs, the composition of the Basket may be revised.

If August 2, 2007 were the Pricing Date, for each Basket Component Stock, the symbol, the initial weighting, the initial closing price, the Multiplier and the initial contribution to the Basket value would be as follows:

		Linked to the Mortgage Finance Basket Due October     , 2008

The following graph sets forth the historical performance of the Basket in the period from January 2004 through July 2007, including the hypothetical Multipliers calculated on August 2, 2007. This historical data on the Basket is not necessarily indicative of the future performance of the Basket or what the value of the Notes may be. Any historical upward or downward trend in the value of the Basket during any period set forth below is not an indication that the Basket is more or less likely to increase or decrease at any time over the term of the Notes.

		Linked to the Mortgage Finance Basket Due October     , 2008

ML&Co. is not affiliated with any of the Underlying Companies. The Underlying Companies have no obligations with respect to the Notes. This term sheet relates only to the Notes and does not relate to the Basket Component Stocks or other securities of the Underlying Companies. All disclosures contained in this pricing supplement regarding the Underlying Companies are derived from the publicly available documents described above. Neither ML&Co. nor MLPF&S has participated in the preparation of these documents or made any due diligence inquiry with respect to the Underlying Companies in connection with the offering of the Notes. Neither ML&Co. nor MLPF&S makes any representation that the publicly available documents or any other publicly available information regarding the Underlying Companies are accurate or complete. Furthermore, there can be no assurance that all events occurring prior to the date hereof, including events that would affect the accuracy or completeness of the publicly available documents described above, that would affect the trading price of the Basket Component Stocks have been publicly disclosed. Subsequent disclosure of any events or the disclosure of or failure to disclose material future events concerning the Underlying Companies could affect the value of the this Basket Component Stocks to be received on the maturity date of the Notes and therefore the trading prices of the Notes. Neither ML&Co. nor any of its affiliates make any representation to any purchaser of the Notes as to the performance of the this Basket Component Stocks.

ML&Co. or its affiliates may presently or from time to time engage in business, directly or indirectly, with the Underlying Companies including extending loans to, or making equity investments in, the Underlying Companies or providing investment banking or advisory services to the Underlying Companies, including merger and acquisition advisory services. In the course of that business, ML&Co. or its affiliates may acquire non-public information with respect to the Underlying Companies and, in addition, one or more affiliates of ML&Co. may publish research reports with respect to the Underlying Companies. Any prospective purchaser of the Notes should undertake an independent investigation of the Underlying Companies as in its judgment is appropriate to make an informed decision with respect to an investment in the Notes.

		Linked to the Mortgage Finance Basket Due October     , 2008

Certain U.S. Federal Income Taxation Considerations

Set forth below is a summary of certain U.S. federal income tax considerations relating to an investment in the Notes. The following summary is not complete and is qualified in its entirety by the discussion under the section entitled “United States Federal Income Taxation” in the accompanying product supplement ARNB-1 and MTN prospectus supplement, which you should carefully review prior to investing in the Notes.

General.   There are no statutory provisions, regulations, published rulings or judicial decisions addressing or involving the characterization and treatment, for United States federal income tax purposes, of the Notes or securities with terms substantially the same as the Notes. Accordingly, the proper United States federal income tax characterization and treatment of the Notes is uncertain. Pursuant to the terms of the Notes, ML&Co. and every holder of a Note agree (in the absence of an administrative determination, judicial ruling or other authoritative guidance to the contrary) to characterize and treat a Note for all tax purposes as a pre-paid cash-settled forward contract linked to the value of the Basket. Due to the absence of authorities that directly address instruments that are similar to the Notes, significant aspects of the United States federal income tax consequences of an investment in the Notes are not certain, and no assurance can be given that the Internal Revenue Service (the “IRS”) or the courts will agree with the characterization and tax treatment described above. Accordingly, prospective purchasers are urged to consult their own tax advisors regarding the United States federal income tax consequences of an investment in the Notes (including alternative characterizations and tax treatments of the Notes) and with respect to any tax consequences arising under the laws of any state, local or foreign taxing jurisdiction.

Payment on the Maturity Date. Assuming that the Notes are properly characterized and treated as pre-paid cash-settled forward contracts linked to the value of the Basket, upon the receipt of cash on the maturity date of the Notes, a U.S. Holder (as defined in the accompanying product supplement ARNB-1) will recognize gain or loss. The amount of such gain or loss will be the extent to which the amount of the cash received differs from the U.S. Holder’s tax basis in the Note. A U.S. Holder’s tax basis in a Note generally will equal the amount paid by the U.S. Holder to purchase the Note. It is uncertain whether any such gain or loss would be treated as ordinary income or loss or capital gain or loss. Absent a future clarification in current law (by an administrative determination, judicial ruling or otherwise), where required, ML&Co. intends to report any such gain or loss to the IRS in a manner consistent with the treatment of such gain or loss as capital gain or loss. If such gain or loss is treated as capital gain or loss, then any such gain or loss will be long-term capital gain or loss if the U.S. Holder has held the Note for more than one year as of the maturity date.

Sale or Exchange of the Notes. Assuming that the Notes are properly characterized and treated as pre-paid cash-settled forward contracts linked to the value of the Basket, upon a sale or exchange of a Note prior to the maturity date of the Notes, a U.S. Holder will generally recognize capital gain or loss in an amount equal to the difference between the amount realized on such sale or exchange and such U.S. Holder’s tax basis in the Note so sold or exchanged. Any such capital gain or loss will be long-term capital gain or loss if the U.S. Holder has held the Note for more than one year as of the date of such sale or exchange.

Prospective purchasers of the Notes should consult their own tax advisors concerning the tax consequences, in light of their particular circumstances, under the laws of the United States and any other taxing jurisdiction, of the purchase, ownership and disposition of the Notes. See the discussion under the section entitled “United States Federal Income Taxation” in the accompanying product supplement ARNB-1.

Experts

The consolidated financial statements, the related financial statement schedule, and management’s report on the effectiveness of internal control over financial reporting incorporated in this term sheet by reference from Merrill Lynch & Co., Inc.’s Annual Report on Form 10-K for the year ended December 29, 2006 have been audited by Deloitte & Touche LLP, an independent registered public accounting firm, as stated in their reports, which are incorporated herein by reference (which reports (1) express an unqualified opinion on the consolidated financial statements and the related financial statement schedule and include an explanatory paragraph regarding the change in accounting method in 2006 for share-based payments to conform to Statement of Financial Accounting Standard No. 123 (revised 2004), Share-Based Payment, (2) express an unqualified opinion on management’s assessment regarding the effectiveness of internal control over financial reporting, and (3) express an unqualified opinion on the effectiveness of internal control over financial reporting), and have been so incorporated in reliance upon the reports of such firm given upon their authority as experts in accounting and auditing.

With respect to the unaudited condensed consolidated interim financial information for the three-month periods ended March 30, 2007 and March 31, 2006, and the three-month and six-month periods ended June 29, 2007 and June 30, 2006 which are incorporated herein by reference, Deloitte & Touche LLP, an independent registered public accounting firm, have applied limited procedures in accordance with the standards of the Public Company Accounting Oversight Board (United States) for a review of such information. However, as stated in their reports included in ML&Co.’s Quarterly Reports on Form 10-Q for the quarters ended March 30, 2007 and June 29, 2007 (which reports include an explanatory paragraph regarding the adoption of Statement of Financial Accounting Standards No. 157, “Fair Value Measurement”, Statement of Financial Accounting Standards No. 159, “The Fair Value Option for Financial Assets and Financial Liabilities—Including an amendment of FASB Statement No. 115,” and FASB Interpretation No. 48, “Accounting for Uncertainty in Income Taxes, an Interpretation of FASB Statement No. 109.”) and incorporated by reference herein, they did not audit and they do not express an opinion on that interim financial information. Accordingly, the degree of reliance on their reports on such information should be restricted in light of the limited nature of the review procedures applied. Deloitte & Touche LLP are not subject to the liability provisions of Section 11 of the Securities Act of 1933 for their reports on the unaudited condensed consolidated interim financial information because those reports are not “reports” or a “part” of the registration statement prepared or certified by an accountant within the meaning of Sections 7 and 11 of the Act.

		Linked to the Mortgage Finance Basket Due October     , 2008

Additional Note Terms

You should read this preliminary term sheet, together with the documents listed below (collectively, the “Note Prospectus”), which together contain the terms of the Notes and supersede all prior or contemporaneous oral statements as well as any other written materials. You should carefully consider, among other things, the matters set forth under “Risk Factors” in the sections indicated on the cover of this term sheet. The Notes involve risks not associated with conventional debt securities. We urge you to consult your investment, legal, tax, accounting and other advisers before you invest in the Notes.

You may access the following documents on the SEC Website at www.sec.gov as follows (or if such address has changed, by reviewing our filings for the relevant date on the SEC Website):

Our Central Index Key, or CIK, on the SEC Website is 65100. References in this term sheet to “ML&Co.”, “we”, “us” and “our” are to Merrill Lynch & Co., Inc., and references to “MLPF&S” are to Merrill Lynch, Pierce, Fenner & Smith Incorporated.

ML&Co. has filed a registration statement (including a prospectus) with the Securities and Exchange Commission (the “SEC”) for the offering to which this preliminary term sheet relates. Before you invest, you should read the prospectus in that registration statement, and the other documents relating to this offering that ML&Co. has filed with the SEC for more complete information about ML&Co. and this offering. You may get these documents without cost by visiting EDGAR on the SEC Website at www.sec.gov. Alternatively, ML&Co., any agent or any dealer participating in this offering, will arrange to send you the Note Prospectus if you so request by calling toll-free 1-866-500-5408.

		Linked to the Mortgage Finance Basket Due October     , 2008

ANNEX A

This annex contains tables which provide a brief synopsis of the business of each of the stocks included in the Basket as well as the split-adjusted month-end closing market prices in U.S. dollars for each Underlying Stock in each month from January 2002 through July 2007 (or from the first month-end for which that data is available). The historical prices of the stocks included in the Basket are not indicative of the future performance of the Underlying Stocks. The following information, with respect to the business of each company issuing a stock included in the Basket, has been derived from publicly available documents published by that company. Because the common stock of each of those companies is registered under the Securities Exchange Act of 1934, those companies are required to file periodically financial and other information specified by the Securities Exchange Commission (the “SEC”). For more information about those companies, information provided to or filed with the SEC by those companies can be inspected at the SEC’s public reference facilities or accessed through the SEC’s web site at http://www.sec.gov.

ASTORIA FINANCIAL CORPORATION

Astoria Financial Corporation accepts retail deposits from the general public and invests those deposits, together with funds generated from operations, principal repayments on loans and securities and borrowings, primarily in one-to-four family mortgage loans, multi-family mortgage loans, commercial real estate loans and mortgage-backed securities.

CAPITOL FEDERAL FINANCIAL

Capitol Federal Financial accepts retail deposits from the general public and invests those funds primarily in permanent loans secured by first mortgages on owner-occupied, one-to-four family residences. The company also originates consumer loans, loans secured by first mortgages on nonowner-occupied one-to-four family residences, permanent and construction loans secured by one-to-four family residences, commercial real estate loans and multi-family real estate loans.

		Linked to the Mortgage Finance Basket Due October     , 2008

COUNTRYWIDE FINANCIAL CORPORATION

Countrywide Financial Corporation is a holding company which, through its subsidiaries, is engaged in mortgage lending and other real estate finance-related businesses, including mortgage banking, banking and mortgage warehouse lending, dealing in securities and insurance underwriting.

DOWNEY FINANCIAL CORP.

Downey Financial Corp. focuses primarily on banking activities such as accepting funds from the general public and institutions and obtaining borrowings, originating and investing in loans, primarily residential real estate mortgage loans, investment securities and mortgage-backed securities and originating and selling loans to investors in the secondary markets. Downey is also involved in real estate investments.

		Linked to the Mortgage Finance Basket Due October     , 2008

FIRST NIAGARA FINANCIAL GROUP, INC.

First Niagara Financial Group, Inc. provides retail and commercial banking services including residential and commercial real estate loans, commercial business loans and leases, consumer loans, and consumer and commercial deposit products. Additionally, the company offers risk management, wealth management and employee benefit administration services.

HUDSON CITY BANCORP, INC.

Hudson City Bancorp, Inc. is a community, and consumer, oriented retail savings bank offering traditional deposit products, residential real estate mortgage loans and consumer loans. In addition, the company purchases mortgages, mortgage-backed securities, securities issued by the U.S. government and government-sponsored agencies and other investments permitted by applicable laws and regulations.