As of July 24, 2009, the Settlement fund has been distributed to all qualified claimants in accordance with the Settlement Distribution Order.

Background:

On March 19, 2007, the court preliminary approved the Settlement and provided for the Notice of Pendency and Proposed Settlement of Class Actions to be mailed and published.  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. On September 5, 2007, the Court issued an order granting final approval of the settlement and granting attorneys’ fees.  The Court also overruled all objections to the Settlement.

Per Order of the Court dated October 14, 2008, Class Members who purchased shares in any of the four HOLDRs Trusts (B2B Internet HOLDRs Trust, Internet Architecture HOLDRs trust, Internet HOLDRs Trust, and Internet Infrastructure HOLDRs Trust) on the day prior to the initial public offering, and therefore the day prior to the Class Period, were notified of an extended deadline of December 15, 2008 to file a Proof of Claim for such purchases.

On April 22, 2009, Lead Plaintiffs filed a Motion for Distribution of Settlement Proceeds before the Honorable John F. Keenan. In that Motion and accompanying affidavit from the claims administrator, Lead Plaintiffs acknowledged that certain claimants had disputed the determination of their claims. On April 30, 2009, Judge Keenan issued an order requesting supplemental information regarding the determinations of the disputed claims. On May 14, 2009, Plaintiffs filed a Supplemental Submission in support of the Motion for Distribution which addressed, in detail, each of the disputed claims.

On June 1, 2009, Judge Keenan signed the Settlement Distribution Order approving the determinations and calculations of the claims administrator and authorizing distribution of the settlement fund pursuant to the terms of the Settlement Agreement. The settlement fund has now been distributed to all complete and valid claims, on a pro rata basis from the proceeds of the Net Settlement Fund, after payment of all administrative fees and expenses. The settlement proceeds may be distributed within 30 to 45 days of the issuance of this Distribution Order.