ML HOLDERS
Tuesday March 7, 1:56 pm Eastern Time
Company Press Release
New Merrill Lynch HOLDRS Create Investments With Focus On Internet Sub-Sectors
More Than 10 Million Shares of Internet B2B HOLDRS, Internet Infrastructure HOLDRS, and Internet Architecture HOLDRS Worth Over $1 Billion Are Issued
NEW YORK--(BUSINESS WIRE)--March 7, 2000-- Following on the popularity of its Internet HOLDRS (HHH), Merrill Lynch has launched three new HOLDRS that identify and deliver investment opportunities in three distinct Internet industry sub-sectors: business-to-business, infrastructure and architecture.
In total, 3.5 million Internet B2B HOLDRS (BHH), 4.9 million Internet Infrastructure HOLDRS (IIH), and 2.7 million Internet Architecture HOLDRS (IAH) began trading recently on the American Stock Exchange with a combined market capitalization of more than $1 billion.
``While individual Internet stocks tend to be highly volatile, baskets of stocks owned through HOLDRS provide a diversified way for investors to maintain exposure to this rapidly growing economic sector,' said Steve Bodurtha, Head of Merrill Lynch's Customized Investments Group. ``The Internet industry has quickly expanded to include more than the business-to-consumer companies represented in our original Internet HOLDRS (HHH). The three new HOLDRS allow investors to broaden their exposure to the full range of Internet investment opportunities.'
HOLDRS give investors undivided beneficial ownership in the stock of specified companies in a particular sector, industry or group. Unlike other diversified investments, HOLDRS put investors in control of their assets. An investor may cancel their HOLDRS and take possession of the underlying stocks for a fee of no more than $0.10 per HOLDR. This process is not a taxable event and will provide investors with investing and trading flexibility. HOLDRS also enable investors to implement a true buy and hold investment strategy.
Shares of Internet HOLDRS began trading in September 1999. Today, approximately 7 million shares of Internet HOLDRS are outstanding and represent an aggregate market value in excess of $1 billion. The eight HOLDRS currently available represent more than $11 billion.
``The growth of the original Internet HOLDRS and the demand for the three new Internet offerings illustrate that investors have embraced the flexible, low-cost, tax-efficient features of HOLDRS,' added Mr. Bodurtha.
In July 1998, Merrill Lynch launched its first HOLDRS product, Telebras HOLDRS (NYSE:TBH - news), with an initial market capitalization of about $4.68 billion. Telebras HOLDRS represent investors' interests in 12 separate American Depositary Receipts. Since its inception, TBH has traded on average almost 1.7 million shares per day.
In addition to Telebras HOLDRS and the four Internet-focused HOLDRS, Merrill Lynch has also introduced Telecom HOLDRS (TTH), Pharmaceutical HOLDRS (PPH) and Biotech HOLDRS (BBH). In February 2000, 9.9 million shares of Telecom HOLDRS and 6.8 million shares of Pharmaceutical HOLDRS began trading and, in November 1999, 4.5 million shares of Biotech HOLDRS began trading.
An investor may obtain HOLDRS by purchasing them in the secondary market -- just like any other stock or by depositing with the Trustee the required share amounts of the 20 underlying stocks and paying an issuance fee of up to $0.10 per HOLDR to the Trustee. Internet B2B HOLDRS, Internet Infrastructure HOLDRS, and Internet Architecture HOLDRS, can only be traded, issued and cancelled in round lots of 100 HOLDRS.
The specific share amounts underlying each round lot of 100 HOLDRS are set forth in the charts below. These share amounts should not vary except for changes due to corporate events such as stock splits or reverse splits on the underlying securities or reconstitution events.
Internet B2B HOLDRS (BHH)
Name & Symbol No. Of Name & Symbol No. Of
Shares Shares
Internet Capital 15 Retek Inc. (RETK) 3
Group, Inc. (ICGE)
Ariba, Inc. (ARBA) 7 Sterling Commerce, Inc. (SE) 6
Commerce One, Inc. (CMRC) 6 Proxicom, Inc. (PXCM) 4
FreeMarkets, Inc. (FMKT) 3 Silknet Software, Inc.(SILK) 1
VerticalNet, Inc. (VERT) 3 PurchasePro.com, Inc.(PPRO) 2
Scient Corporation (SCNT) 5 SciQuest.com, Inc.(SQST) 3
CareInsite, Inc. (CARI) 6 QRS Corporation (QRSI) 1
Ventro Corporation (VNTR) 2 Harbinger Corporation(HRBC) 3
Agile Software 2 Pegasus Systems, Inc.(PEGS) 2
Corporation (AGIL)
CheckFree Holdings 4 ImageX.com, Inc. (IMGX) 1
Corporation (CKFR)
Internet Infrastructure HOLDRS (IIH)
Name & Symbol No. Of Name & Symbol No. Of
Shares Shares
Exodus 6 Vitria Technology, Inc.(VITR) 2
Communications, Inc. (EXDS)
Akamai 3 InterNAP Network Services 5
Technologies, Inc. (AKAM) Corporation (INAP)
VeriSign, Inc. (VRSN) 4 Digital Island, Inc. (ISLD) 2
InfoSpace.com Inc. (INSP) 4 Network Solutions, Inc.(NSOL) 1
BroadVision, Inc. (BVSN) 3 Kana Communications, Inc. 2
(KANA)
Vignette Corporation (VIGN) 2 Alteon WebSystems, Inc. 2
(ATON)
Inktomi Corp. (INKT) 4 Usinternetworking, Inc. 2
(USIX)
BEA Systems, Inc. (BEAS) 5 E.piphany, Inc. (EPNY) 1
RealNetworks, Inc. (RNWK) 6 NaviSite, Inc. (NAVI) 1
Portal Software, Inc. (PRSF) 6 Software.com, Inc. (SWCM) 2
Internet Architecture HOLDRS (IAH)
Name & Symbol No. Of Name & Symbol No. Of
Shares Shares
Cisco Systems, Inc. (CSCO) 13 Foundry Networks, Inc. 1
(FDRY)
International Business 13 Gateway, Inc. (GTW) 2
Machines Corp. (IBM)
Hewlett-Packard Co. (HWP) 7 Network Appliance, Inc.(NTAP) 1
Sun Microsystems, Inc. (SUNW) 12 Apple Computer, Inc. (AAPL) 1
EMC Corp. (EMC) 8 Cobalt Networks, Inc.(COBT) 1
Dell Computer 19 Seagate Technology, Inc. 2
Corporation (DELL) (SEG)
Compaq Computer Corporation 13 Extreme Networks, Inc.(EXTR) 1
(CPQ)
Sycamore Networks, 2 CIENA Corporation (CIEN) 1
Inc. (SCMR)
Juniper Networks, Inc. (JNPR) 1 Unisys Corp. (UIS) 2
3Com Corporation (COMS) 3 Adaptec, Inc. (ADPT) 1
Merrill Lynch is one of the world's leading financial management and advisory companies with offices in 43 countries and total client assets exceeding $1.7 trillion. As an investment bank, it is the top global underwriter and market maker of debt and equity securities and a leading strategic advisor to corporations, governments, institutions, and individuals worldwide. Through its Asset Management Group, the company is one of the world's largest managers of financial assets, which total approximately $557 billion.
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