Exhibit 99.1

Merrill Lynch & Co., Inc.

Reconciliation of Non-GAAP Measures

Merrill Lynch adopted Statement of Financial Accounting Standards No. 123 (as revised in 2004) for stock-based employee compensation during the first quarter of 2006. Additionally, as a result of a comprehensive review of the retirement provisions in its stock-based compensation plans, Merrill Lynch also modified the retirement eligibility requirements of existing stock awards in order to facilitate transition to more stringent retirement eligibility requirements for future stock awards. These modifications and the adoption of the new accounting standard required Merrill Lynch to accelerate the recognition of compensation expenses for affected stock awards, resulting in the “one-time compensation expenses.” These changes represent timing differences and are not economic in substance.

During the third quarter of 2006, Merrill Lynch completed the merger of its Merrill Lynch Investment Managers business with BlackRock, Inc. Merrill Lynch recognized a gain associated with this merger along with other non-recurring expenses, collectively “Impact of BlackRock Merger”.

Management believes that while the results excluding these one-time compensation expenses and the impact of the BlackRock merger are considered non-GAAP measures, they depict the operating performance of the company more clearly and enable more appropriate period-to-period comparisons.

Earnings Summary

		For the Year Ended December 29, 2006 (1)
		Excluding One-time
		Compensation				Impact of One-time
		Expenses & Impact of				Compensation				Impact of
(in millions, except per share amounts)		BlackRock Merger				Expenses				BlackRock Merger				GAAP Basis
Revenues, net of interest expense		$	31,812			$	—			$	1,969			$	33,781
Non-interest expenses
Compensation and benefits			14,964				1,759				144				16,867
Non-compensation expenses			7,046				—				58				7,104
Total non-interest expenses			22,010				1,759				202				23,971
Pre-tax earnings from continuing operations			9,802				(1,759	)			1,767				9,810
Income tax expense			2,633				(582	)			662				2,713
Net earnings from continuing operations		$	7,169			$	(1,177	)		$	1,105			$	7,097
Pre-tax earnings from discontinued operations		$	616			$	—			$	—			$	616
Income tax expense			214				—				—				214
Net earnings from discontinued operations		$	402			$	—			$	—			$	402
Net earnings		$	7,571			$	(1,177	)		$	1,105			$	7,499
Preferred stock dividends		$	188			$	—			$	—			$	188
Net earnings applicable to common stockholders		$	7,383			$	(1,177	)		$	1,105			$	7,311
Basic earnings per common share from continuing operations		$	8.06			$	(1.37	)		$	1.27			$	7.96
Basic earnings per common share from discontinued operations			0.46				—				—				0.46
Basic earnings per common share		$	8.52			$	(1.37	)		$	1.27			$	8.42
Diluted earnings per common share from continuing operations		$	7.26			$	(1.23	)		$	1.14			$	7.17
Diluted earnings per common share from discontinued operations			0.42				—				—				0.42
Diluted earnings per common share		$	7.68			$	(1.23	)		$	1.14			$	7.59
Average shares used in computing earnings per common share
Basic			866.7				1.4				—				868.1
Diluted			961.5				1.5				—				963.0

Financial Ratios

		For the Year Ended (1)
		December 29, 2006
		Excluding One-time
		Compensation
		Expenses & Impact of
		BlackRock Merger				GAAP Basis
Ratio of compensation and benefits to net revenues			47.0	%			49.9	%
Ratio of non-compensation and benefits to net revenues			22.1	%			21.0	%
Effective tax rate			26.9	%			27.7	%
Pre-tax profit margin			30.8	%			29.0	%
Average common equity		$	34,354			$	34,354
Impact of one-time compensation expenses and the BlackRock merger			(130	)			—
Average common equity			34,224				34,354
Annualized return on average common equity from continuing operations			20.4	%			20.1	%
Annualized return on average common equity			21.6	%			21.3	%

Segment Data

		For the Year Ended
		Dec. 28,				Dec. 29,				Percent
(dollars in millions)		2007				2006				Inc / (Dec)
Global Markets & Investment Banking
Global Markets
FICC		$	(15,873	)		$	7,552				N/M	%
Equity Markets			8,286				6,730				23
Total Global Markets net revenues			(7,587	)			14,282				N/M
Investment Banking (1)
Origination:
Debt			1,550				1,704				(9	)
Equity			1,629				1,220				34
Strategic Advisory Services			1,740				1,099				58
Total Investment Banking net revenues			4,919				4,023				22
Total net revenues			(2,668	)			18,305				N/M
Pre-tax earnings / (loss) from continuing operations			(16,345	)			5,292				N/M
Impact of one-time compensation expenses			—				1,369				N/M
Pre-tax earnings / (loss) from continuing operations excluding one-time compensation expenses			(16,345	)			6,661				N/M
Pre-tax profit margin			N/M				28.9	%
Pre-tax profit margin excluding one-time compensation expenses			N/M				36.4	%
Global Wealth Management
Global Private Client
Fee-based revenues		$	6,278			$	5,499				14
Transactional and origination revenues			3,887				3,397				14
Net interest profit and related hedges(2)			2,318				2,103				10
Other revenues			416				301				38
Total Global Private Client net revenues			12,899				11,300				14
Global Investment Management net revenues			1,122				541				107
Total net revenues			14,021				11,841				18
Pre-tax earnings from continuing operations			3,630				2,290				59
Impact of one-time compensation expenses			—				281				N/M
Pre-tax earnings from continuing operations excluding one- time compensation expenses			3,630				2,571				41
Pre-tax profit margin			25.9	%			19.3	%
Pre-tax profit margin excluding one-time compensation expenses			25.9	%			21.7	%
Merrill Lynch Investment Managers
Total net revenues		$	—			$	1,900				N/M
Pre-tax earnings from continuing operations			—				637				N/M
Impact of one-time compensation expenses			—				109				N/M
Pre-tax earnings from continuing operations excluding one- time compensation expenses			—				746				N/M
Pre-tax profit margin			—				33.5	%
Pre-tax profit margin excluding one-time compensation expenses			—				39.3	%
Corporate
Total net revenues		$	(103	)		$	1,735				N/M
Impact of BlackRock merger			—				1,969				N/M
Total net revenues excluding the BlackRock merger			(103	)			(234	)			(56	)
Pre-tax earnings / (loss) from continuing operations			(116	)			1,591				N/M
Impact of BlackRock merger			—				(1,767	)			N/M
Pre-tax earnings / (loss) from continuing operations excluding the BlackRock merger			(116	)			(176	)			(34	)
Total
Total net revenues		$	11,250			$	33,781				(67	)
Impact of BlackRock merger			—				1,969				N/M
Total net revenues excluding the BlackRock merger			11,250				31,812				(65	)
Pre-tax earnings / (loss) from continuing operations			(12,831	)			9,810				N/M
Impact of BlackRock merger			—				(1,767	)			N/M
Impact of one-time compensation expenses			—				1,759				N/M
Pre-tax earnings / (loss) from continuing operations excluding BlackRock merger and one-time compensation expenses			(12,831	)			9,802				N/M
Pre-tax profit margin			N/M				29.0	%
Pre-tax profit margin excluding BlackRock merger and one- time compensation expenses			N/M				30.8	%