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This page provides the answers to class members' most frequently asked questions.

The information provided is in summary form and is not intended as a complete explanation of your rights. For full and complete information, you are directed to review carefully the Notice of Pendency of Class Action and Proposed Settlement and Stipulation and Agreement of Settlement.


Am I being sued?
What is this litigation about?
What is a Class Action?
Why is there a settlement?
How many people are there in this class action?
Do I have to pay anything?
What should I do?
How much will I get?
How can I contact the Class Counsel?
Should I get my own lawyer?
What is the Settlement Fairness Hearing?
Do I have to attend the Settlement Hearing?
Where can I get more information?
Top Q: Am I being sued?
A: No, you are not.
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Top Q: What is this litigation about?
A:
Beginning in July 2001 and continuing through 2003, a number of complaints were filed which named some or all of Defendants Merrill Lynch & Co., Inc. (ML & Co.), Merrill Lynch, Pierce, Fenner & Smith, B2B HOLDRs/SM Trust, Internet Architecture HOLDRs/SM Trust (hereinafter collectively “Merrill Lynch Defendants”) and several natural persons, including but not limited to, Henry M. Blodget (collectively “Defendants”). These complaints alleged, among other things, that research reports issued by MLPF&S on numerous Internet companies falsely recommended that investors buy the underlying securities which caused injury to the plaintiffs. For additional details about this litigation, including details about the settlement, please refer to the Notice of Pendency of Class Action and Proposed Settlement.
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Top Q: What is a Class Action?
A:
In a class action, one or more people called class representatives sue on behalf of people who have similar claims. All these people are a class or class members. The defendants, who are being sued, include Merrill Lynch & Company and other individuals. For a complete set of defendants please refer the Notice of Pendency of Class Action and Proposed Settlement. The court will resolve the common issues for everyone in the class. The lawyers representing the class are called “class counsel".
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Top Q: Why is there a settlement?
A:
The principal reason for the Settlement is the benefit to be provided to the Class now. This benefit must be compared to the risk that no recovery might be achieved after a contested trial and likely appeals, possibly years into the future.
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Top Q: How many people are there in this class action?
  A: Class counsel believes that thousands of people are members of the class.
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Top Q: Do I have to pay anything?
A:
No, you do not have to pay anything.
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Top Q: What should I do?
A:
We cannot offer any advice as to what you should do. That said, you have five options:

First, to qualify for a payment, you must submit a valid Proof of Claim and Release form. A Proof of Claim and Release form is being circulated with the Notice of Pendency of Class Action and Proposed Settlement. You may also get a Proof of Claim and Release form here. Read the instructions carefully, fill out the form, include all the documents the form asks for, sign it, and mail it postmarked no later than August 31, 2007. There are spaces listed for every company included in this Settlement. You may include shares for all of the listed companies that you purchased on the same claim form.

Second, you can exclude yourself from the Class with respect to the Settlement. Pursuant to the Notice of Pendency of Class Action and Proposed Settlement, class members are allowed to request exclusion, in writing, postmarked on or before June 18, 2007. Persons who exclude themselves will NOT receive any share of the Settlement proceeds and will not be bound by the Settlement. Detailed directions on how to exclude yourself from the Settlement are contained on page 13 of the Notice of Pendency of Class Action and Proposed Settlement.

Third, you may object and write to the court about why you do not agree with the Settlement or any part of it. Objections must be received by June 18, 2007. Persons who exclude themselves from the Class are not affected by the settlements and may not object to the Settlement. Detailed directions on how to object to the settlement - and to make an appearance at the Settlement Fairness Hearing - are contained on page 15 of the Notice of Pendency of Class Action and Proposed Settlement.

Persons who object to the Settlement must still submit a Proof of Claim and Release form in order to receive any share of the Settlements’ proceeds in the event the Court approves the Settlement. Submitting a Proof of Claim and Release does not waive any objection that you file. Submitting an objection does not does not exclude you from the Class.

Fourth, you may go to the Fairness Hearing on July 25, 2007. The Court will hold a hearing to decide whether to approve the proposed Settlement. You may attend and you may ask to speak, but you do not have to. Refer to “What is the Settlement Fairness Hearing?” below.

Lastly, you can do nothing. If you do nothing, you will get no money from this Settlement. If you do nothing, upon the effective date of the settlement, you will release all settled claims against the released parties. You must submit a Proof of Claim and Release form in order to share in the net settlement funds.
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Top Q: How much will I get?
A:
If the court approves the settlement, the proposed Settlement creates a fund in the amount of $125,000,000 in cash (plus a cash amount equivalent to interest which has been accruing since March 30, 2006). If and when such approval becomes final, and the claims administration process has been completed, that fund, after payment of fees and expenses awarded or allowed by the Court, will be divided among all Class Members who send in a valid Proof of Claim and Release form. The amount that any class member will receive will depend on several factors, including, for example, when the class member purchased the securities and when they were sold, the size of the class members’ claim, the number of claims filed, and the total of the losses of all claims filed. Proof of Claim and Release forms must be postmarked on or before August 31, 2007, to be considered valid. Please refer to the Notice for an explanation of how the funds will be allocated (Plan of Allocation) and the amounts that pertain to company’s whose stock you purchased.
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Top Q: How can I contact the Class Counsel?
A:
You may communicate with them by writing to:

KAPLAN FOX & KILSHEIMER LLP
Frederic S. Fox
805 Third Avenue, 22nd Floor
New York, NY 10022
http://www.kaplanfox.com

MURRAY, FRANK & SAILER LLP
Jacqueline Sailer
275 Madison Avenue, 8th Floor
New York, NY 10016
http://www.murrayfrank.com

COHEN, MILSTEIN, HAUSFELD & TOLL, P.L.L.C.
Herbert E. Milstein
Joshua S. Devore
1100 New York Avenue, N.W.
West Tower, Suite 500
Washington, DC 2005
http://www.cmht.com

SHAPIRO HABER & URMY LLP
Edward F. Haber
53 State Street
Boston, Massachusetts 02109
http://www.shulaw.com

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Top Q: Should I get my own lawyer?
A:
You do not have to hire your own lawyer because class counsel is working on behalf of all Class Members. If you want your own lawyer to separately represent your own interests, to object to the Settlement or, if you exclude yourself, to bring a separate action against the defendants, you can hire a lawyer at your own expense.
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Top Q: What is the Settlement Fairness Hearing?
  A:
The purpose of the Settlement Hearing is to determine: (1) whether the proposed settlement consisting of the sum of $125,000,000 in cash, plus a cash amount of equivalent to interest accruing from March 30, 2006, should be approved by the Court as fair, reasonable, and adequate; (3) whether the application by the Co-Chairs for an award of attorneys’ fees and reimbursement of expenses should be approved; and (4) whether the Actions should be dismissed with prejudice. On July 25, 2007, the Honorable Judge Keenan held a Fairness Hearing to consider the fairness, reasonableness and adequacy of the Settlement and the Plan of Allocation and to consider Lead Counsel’s request for attorneys’ fees and reimbursement of expenses. The court heard argument and has taken the matter under submission.
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Top Q: Do I have to attend the Settlement Hearing?
  A: No, you do not.
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Top Q: Where can I get more information?
A:
You can call the Claims Administrator toll free at 1-888-217-2225, or write to:

Merrill Lynch Litigation Settlement
c/o Analytics Incorporated, Claims Administrator
P.O. Box 2004
Chanhassen, Minnesota 55317-2004

For more detailed information concerning the matters involved in this Action, reference is made to the pleadings, to the Stipulation, to the Orders entered by the court and to the other papers filed in the Action, which may be inspected during normal business hours, at the Office of the Clerk of the United States District Court for the Southern District of New York, United States District Courthouse, 500 Pearl Street, New York NY 1007.