EXHIBIT 99.1

Exhibit 99.1

Merrill Lynch Reports Record Net Earnings and Diluted EPS for Third
Quarter and Year-to-Date 2006

Third Quarter Net Earnings of $3.17 Per Diluted Share;

EPS of $2.00 Excluding Net Merger Gain, up 43% from 2005

Authorizes an Additional $5 Billion in Stock Buybacks


NEW YORK--(BUSINESS WIRE)--Oct. 17, 2006--Merrill Lynch (NYSE:MER)
today reported record net earnings and earnings per diluted share for
both the third quarter and first nine months of 2006, as net revenues
increased over the prior-year periods in all three business segments.

Net earnings for the third quarter of 2006 were $3.0 billion, or
$3.17 per diluted share, as total net revenues increased significantly
from both the third quarter of 2005 and the second quarter of 2006, to
$9.9 billion. The annualized return on common equity for the quarter
was 35.3%. Those figures all include significant net benefits from the
closing of the merger between Merrill Lynch Investment Managers (MLIM)
and BlackRock (NYSE:BLK).

The net impact from closing the BlackRock merger included a
one-time pre-tax gain of $2.0 billion and related non-interest
expenses of $202 million, for a total after-tax net benefit of $1.1
billion, or $1.17 per diluted share. Excluding the net benefits from


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the BlackRock merger, third quarter 2006 net earnings were $1.9
billion, and net earnings per diluted share of $2.00 were higher than
any previous quarter for Merrill Lynch and up 43% from the 2005 third
quarter and up 23% from the 2006 second quarter. Third quarter net
earnings and earnings per share included a tax benefit which reduced
the effective tax rate. Adjusted to exclude the net benefits from the
merger, pre-tax earnings of $2.4 billion were higher than in any
previous quarter, up 22% from the prior-year quarter and up 1% from
the second quarter of 2006, as net revenues of $7.9 billion increased
19% from the year-ago period and decreased 3% sequentially. On the
same basis, the pre-tax profit margin for the 2006 third quarter was
29.8%, up approximately a point from both the prior-year period and
the second quarter, and the annualized return on common equity was
22.5%, up 5.3 and 3.9 percentage points, respectively from the
year-ago and second quarters, and the highest Merrill Lynch has
generated since the first quarter of 2000. Reconciliations of
quarterly results to those adjusted to exclude the net impact of the
BlackRock merger appear on Attachment III to this release.

At the end of the third quarter, book value per share was $40.52,
up 17% from the end of third quarter of 2005 and 9% from the second
quarter of 2006.

"This was a very good quarter," said Stan O'Neal, chairman and
chief executive officer of Merrill Lynch. "All three of our business
segments delivered solid year-over-year revenue and earnings growth in
a business environment that was more challenging than the first half
of the year. We also realized a major strategic milestone at the end
of the quarter in the completion of the merger of MLIM with BlackRock,
which will enable us to enhance our participation in asset management
through our ownership of just under half of a better-positioned
company with stronger growth prospects."

"The BlackRock transaction also resulted in a substantial
financial gain for Merrill Lynch and will enable us to more
efficiently deploy our capital as we continue to build out our
capabilities and pursue growth," Mr. O'Neal said. "We remain focused
on making high-quality investments globally in people, infrastructure
and capabilities that will enable us to better serve clients and
capitalize on the secular growth opportunities we see across our
businesses."


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Net revenues for the first nine months of 2006 were a record $26.0
billion, up 35% from the first nine months of 2005. Year-to-date net
earnings were a record $5.2 billion, up 38% from the 2005 period,
while earnings per diluted share were a record $5.19, up 38%.
Year-to-date pre-tax earnings of $7.1 billion increased 36% from 2005,
and the return on average common equity was 19.7%. Those results all
include the impact of both the net benefits from the BlackRock merger
and the one-time compensation expenses incurred in the first quarter
of 2006.

Adjusted to exclude the impact of both the BlackRock merger and
the one-time compensation expenses, year-to-date net earnings were
also $5.2 billion, and diluted earnings per share were $5.27, both up
40% from the prior-year period. On the same basis, pre-tax earnings of
$7.1 billion increased 36%, as net revenues rose 25% to $24.0 billion;
the pre-tax profit margin was 29.4%, up 2.4 percentage points; and the
annualized return on average common equity was 20.2%, up 4.5
percentage points. Reconciliations of year-to-date results to those
adjusted to exclude the net impact of the BlackRock merger and the
one-time compensation expenses appear on Attachment IV to this
release.

Business Segment Review:

The nine-month comparisons in the following discussion of business
segment results exclude the impact of the $1.8 billion, pre-tax,
one-time compensation expenses incurred in the first quarter of 2006.
These one-time compensation expenses were recorded in the first
quarter in the business segments as follows: $1.4 billion in Global
Markets and Investment Banking, $281 million in Global Private Client
and $109 million in Merrill Lynch Investment Managers. The impact of
the closing of the BlackRock merger is reflected in the Corporate
segment. A reconciliation of segment results with these amounts
appears on Attachment V to this release.

Global Markets and Investment Banking (GMI)

GMI generated its highest revenues ever for a fiscal third quarter
despite challenging market conditions during much of the period,
demonstrating the cumulative benefits of numerous targeted investments
for revenue diversification and profitable growth globally.

-- GMI's third quarter 2006 net revenues were $4.4 billion, up
21% from the year-ago quarter. Compared with the third quarter
of 2005, net revenues increased in all three major business
lines:


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-- Fixed Income, Currencies and Commodities (formerly Debt
Markets) net revenues increased 26%, and were a quarterly
record, driven primarily by record results in commodities and
an increase from trading credit products, which more than
offset declines from principal investing and trading interest
rate products.

-- Equity Markets net revenues increased 26%, driven by increases
from private equity, cash equity trading, proprietary trading
and equity financing and services.

-- Investment Banking net revenues, at $783 million, were just
above the strong prior-year quarter, as substantially higher
merger and acquisition advisory revenues offset decreases from
debt and equity origination.

-- Pre-tax earnings for GMI were $1.5 billion, up 13% from the
year-ago quarter, driven by the strong revenue growth. The
third quarter 2006 pre-tax profit margin was 33.2%, compared
with 35.4% in the prior-year period, due to expenses
associated with investments for growth across the business, as
well as the absence of a litigation reversal that benefited
the prior-year quarter.

-- On September 5th, Merrill Lynch announced that it had agreed
to acquire the First Franklin mortgage origination and
servicing businesses from National City Corporation for $1.3
billion.

-- GMI's year-to-date net revenues of $13.5 billion increased 30%
from the first nine months of 2005 and were driven by record
revenues in both Global Markets and Investment Banking.
Pre-tax earnings were $4.5 billion, up 29% from the prior year
period. GMI's year-to-date pre-tax profit margin was 33.5%,
compared with 33.8% in the first nine months of 2005.

Global Private Client (GPC)

In the third quarter of 2006, GPC generated solid year-on-year
revenue growth despite a challenging market environment and more
pronounced seasonal factors. This business continued to execute on its
strategy of revenue and product diversification, annuitization and
growth in Financial Advisor (FA) headcount and productivity.

-- GPC's third quarter 2006 net revenues were $2.8 billion, up 5%
from the year-ago quarter, driven primarily by higher
fee-based revenues and net interest profit. Those increases
were partially offset by lower transaction and origination
revenues, reflecting a more typical seasonal slowdown in
client activity than the prior-year period. GPC's third
quarter pre-tax earnings of $611 million were up 4% from the
year-ago quarter, and the pre-tax profit margin was 21.6%,
compared with 21.9% in the prior-year period.

-- Turnover among Financial Advisors (FAs), particularly
top-producing FAs, remained near historical lows. FA headcount
reached 15,700 at quarter-end, as GPC continued to employ its
disciplined strategy of actively recruiting and training FAs.


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-- Client assets in products that generate annuitized revenues
ended the quarter at $578 billion, up 17% from the end of the
2005 third quarter, and total client assets in GPC accounts
were $1.5 trillion, up 11% from the year-ago quarter. Net
inflows of client assets into annuitized-revenue products were
$7 billion, and total net new money was $14 billion.

-- For the first nine months of 2006, GPC's net revenues
increased 12% to $8.8 billion, driven by growth in nearly
every major revenue category. Pre-tax earnings increased 26%
to $2.0 billion, demonstrating the operating leverage in this
business. GPC's year-to-date pre-tax profit margin was 22.2%,
up 2.4 percentage points from 19.8% in the first nine months
of 2005.

Merrill Lynch Investment Managers (MLIM)

MLIM continued its positive momentum during the period with strong
revenue and pre-tax earnings growth and solid net flows.

-- MLIM's third quarter 2006 net revenues were a record $700
million, up 54% from the 2005 third quarter. The
year-over-year increase in net revenues was driven principally
by higher long-term asset values, robust net inflows and
consolidated investments. Pre-tax earnings were $284 million,
up 75% from the 2005 period, driven by the significantly
higher net revenues and strong operating leverage that was
enhanced by lower spending in certain areas ahead of
integration of the BlackRock merger. MLIM's pre-tax profit
margin for the quarter was 40.6%, up more than five percentage
points from the 2005 period.

-- Firmwide assets under management just prior to the quarter-end
closing of the merger totaled $598 billion, up 14% from a year
ago. Net inflows for the quarter were $1 billion, as inflows
in the EMEA Pacific and Americas retail channels, driven by
equity and liquidity products, were partially offset by
outflows in the EMEA Pacific institutional channel.

-- MLIM's net revenues for the first nine months of 2006
increased 49% over the 2005 period, to $1.9 billion, driven by
strong net sales and asset appreciation. Pre-tax earnings were
up 82% to $746 million, and the year-to-date pre-tax profit
margin was 39.3%.

-- At the end of the third quarter, Merrill Lynch merged MLIM
with BlackRock in exchange for a total of 65 million BlackRock
common and preferred shares in the combined company
representing an economic interest of just under half. Merrill
Lynch will account for its investment in BlackRock under the
equity method, and in future periods, Merrill Lynch's share of
earnings from this investment, net of both expenses and taxes,
will be recorded in revenues on the earnings statement.


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Compensation Expenses

Excluding the one-time compensation expenses in the first quarter
and the net impact of the BlackRock merger, year-to-date compensation
and benefits expenses were 49.0% of net revenues, compared to 49.5%
for the prior-year period.

Non-compensation Expenses

Non-compensation expenses were $1.8 billion for the third quarter
of 2006, up 24% from the third quarter of 2005, and include $58
million in costs associated with the closing of the BlackRock merger.
Excluding the net impact of the BlackRock merger, non-compensation
expenses as a percentage of net revenues were 22.2% in the 2006 third
quarter, in line with the previous comparable periods. Details of the
significant changes in non-compensation expenses from the third
quarter of 2005 are as follows:

-- Communication and technology costs were $485 million, up 20%
due primarily to costs related to technology investments for
growth, and higher market information and communication costs.

-- Brokerage, clearing, and exchange fees were $268 million, up
41% due primarily to higher transaction volumes.

-- Occupancy costs and related depreciation were $259 million, up
10% due principally to higher office rental expenses and
office space added via acquisitions.

-- Professional fees were $224 million, an increase of 29% due to
higher legal, consulting and other professional fees
associated with increased business activity levels.

-- Advertising and market development costs were $164 million, up
19% due primarily to higher travel expenses associated with
increased business activity levels.

-- Expenses of consolidated investments totaled $142 million, up
from $91 million due principally to increased minority
interest expenses associated with the related increase in
revenues from consolidated investments.

-- Other expenses were $223 million, up from $192 million, due
primarily to higher litigation provisions which reflected the
absence of a prior-year reversal in GMI.

Income Taxes

Merrill Lynch's effective tax rate was 26.2% for the third
quarter, down from 28.9% in the prior-year quarter, due to a reduction
in the tax provision arising from carryback claims from the years 2001
and 2002 which were previously disclosed in Merrill Lynch's recent
10-Q filings. This benefit was largely offset by the higher tax rate
on the earnings from the closing of the BlackRock merger. The
effective tax rate for the first nine months of 2006 was 27.1%, down
from 28.4% for the first nine months of 2005.


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Share Repurchases

As part of its active management of equity capital, Merrill Lynch
repurchased 18.3 million shares of its common stock for $1.3 billion
during the third quarter. At quarter end, $1.0 billion of authorized
repurchase capacity remained of the $6 billion repurchase program
authorized in February 2006. On October 16th, Merrill Lynch's board of
directors authorized the repurchase of up to an additional $5 billion
of the company's outstanding common shares.

Staffing

Merrill Lynch's full-time employees totaled 55,300 at the end of
the third quarter of 2006, a net decrease of 700 during the quarter,
driven primarily by the closing of the BlackRock merger, in which
2,400 MLIM employees moved over to BlackRock.

Jeff Edwards, senior vice president and chief financial officer,
will host a conference call today at 10:00 a.m. ET to discuss the
company's 2006 third quarter results. The conference call can be
accessed via a live audio webcast available through the Investor
Relations Web site 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. ET today at the
same Web address.

Merrill Lynch is one of the world's leading wealth management,
capital markets and advisory companies with offices in 37 countries
and territories and total client assets of approximately $1.5
trillion. As an investment bank, it is a leading global trader and
underwriter of securities and derivatives across a broad range of
asset classes and serves as a strategic advisor to corporations,
governments, institutions and individuals worldwide. Merrill Lynch
owns just under half of BlackRock, one of the world's largest publicly
traded investment management companies with approximately $1 trillion
in assets under management. For more information on Merrill Lynch,
please visit www.ml.com.


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Merrill Lynch may make forward-looking statements, including, for
example, statements about management expectations, strategic
objectives, growth opportunities, business prospects, investment
banking pipelines, anticipated financial results, the impact of off
balance sheet arrangements, significant contractual obligations,
anticipated results of litigation and regulatory investigations and
proceedings, and other similar matters. These forward-looking
statements are not statements of historical facts and represent only
Merrill Lynch's beliefs regarding future performance, which is
inherently uncertain. There are a variety of factors, many of which
are beyond Merrill Lynch's control, which affect the operations,
performance, business strategy and results and could cause its actual
results and experience to differ materially from the expectations and
objectives expressed in any forward-looking statements. These factors
include, but are not limited to, financial market volatility; actions
and initiatives taken by current and potential competitors; general
economic conditions; the effect of current, pending and future
legislation, regulation, and regulatory actions; and the other
additional factors described in the Risk Factors section of Merrill
Lynch's Annual Report on Form 10-K for the fiscal year ended December
30, 2005 and also disclosed from time to time in its subsequent
reports on Form 10-Q and 8-K, which are available on the Merrill Lynch
Investor Relations Web site at www.ir.ml.com and at the SEC's Web
site, 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
forward-looking statements to reflect the impact of circumstances or
events that arise after the date the forward-looking statements are
made. The reader should, however, consult any further disclosures
Merrill Lynch may make in its future filings of its reports on Form
10-K, Form 10-Q and Form 8-K.

Merrill Lynch may also, from time to time, disclose financial
information on a non-GAAP basis where management believes this
information will be valuable to investors in gauging the quality of
Merrill Lynch's financial performance and identifying trends.


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