Merrill Lynch & Co. - ------------------------------------------------------------------------------------------------------------------------------------ FINAL Executed Terms: April 26, 2004 Structure: 10 Year Inflation-Linked Notes & Swap to 1M LIBOR Marketing Period: April 21, 2004 - April 30, 2004 Effective Date: May 5, 2004 Maturity Date: May 5, 2014 Principal Amount: $43,000,000 Form of Note: Global MTN CUSIP: 5901M0EE5 Inflation-Linked Note Details Reference Index ("CPI"): US City Average Consumer Price Index for All Urban Consumers, as published monthly by the Bureau of Labor Statistics (BLS) and available on Bloomberg CPURNSA or any successor service. ------------------------------------------------------------------------------------------------------------------------------- Current Index Level : [CPI(t) - CPI(t-12)]/CPI(t-12), where: CPI(t) is the CPI for the third calendar month prior to such Reset Date as published and reported in the second calendar month prior to such Reset Date. CPI(t-12) is the CPI reported twelve calendar months prior to CPI(t). ------------------------------------------------------------------------------------------------------------------------------- Coupon: CPI + 2.05% ------------------------------------------------------------------------------------------------------------------------------- Minimum Coupon: 0.000% ------------------------------------------------------------------------------------------------------------------------------- Coupon Payment Dates: Monthly on the 5th day of each month, subject to no adjustment in accordance with the Following Business Day convention ------------------------------------------------------------------------------------------------------------------------------- Initial Coupon Payment Date: June 5, 2004 ------------------------------------------------------------------------------------------------------------------------------- Initial Coupon: 3.74%(1) ------------------------------------------------------------------------------------------------------------------------------- Reference Index Reset Date: Monthly on the 5th of each month, with an initial Reset Observation Date of March 1, 2004. If any Interest Reset Date is not a Business Day, the applicable Interest Reset Date will be postponed to the next succeeding day that is a Business Day ------------------------------------------------------------------------------------------------------------------------------- Denominations: Minimum of $1,000 ------------------------------------------------------------------------------------------------------------------------------- Day Count: ACT/ACT ------------------------------------------------------------------------------------------------------------------------------- Form of Note: Book entry ------------------------------------------------------------------------------------------------------------------------------- Business Day Convention: New York ------------------------------------------------------------------------------------------------------------------------------- Underwriting Fees: 1.250% ------------------------------------------------------------------------------------------------------------------------------- Net Proceeds: $42,462,500 ------------------------------------------------------------------------------------------------------------------------------- Survivor's Option: Not Applicable ------------------------------------------------------------------------------------------------------------------------------- Calculation Agent: MLCS ------------------------------------------------------------------------------------------------------------------------------- (1) The coupon to be paid on June 1, 2004 will be determined by reference to the February 2004 and February 2003 Reference Index as: (186.2 - 183.1)/183.1 = 1.69% Merrill Lynch & Co. ------------------------------------------------------------------------------------------------------------------------------- This information is for your private information and is for discussion purposes only. We are acting solely in the capacity of an arm's length counterparty and not in the capacity of your financial adviser or fiduciary. We or our affiliates may buy or sell instruments identical or economically related to any instruments mentioned here. We or our affiliates may have an investment banking or other commercial relationship with the issuer of any security or financial instrument mentioned here or related thereto. Generally, all over-the-counter ("OTC") derivative transactions involve the risk of adverse or unanticipated market developments, risk of illiquidity and other risks. Unless specifically stated otherwise, any transaction terms are indicative only and are subject to change and any prices mentioned here are not bids or offers by Merrill Lynch to purchase or sell any securities or financial instruments. All trades are subject to Credit approval. Prior to undertaking any trade, you should discuss with your professional tax or other adviser how such particular trade(s) affect you. This brief statement does not disclose all of the risks and other significant aspects of entering into any particular transaction. Options are not suitable for all investors. Option buyers may lose their entire investment. Option sellers may have an unlimited loss. - ------------------------------------------------------------------------------------------------------------------------------------