Emphasizes Firm's Commitment to India's Future Growth

NEW YORK, December 7 : Merrill Lynch (NYSE: MER) today announced that it will increase its 40 percent ownership interest in DSP Merrill Lynch by up to an additional 50 percent, to 90 percent, for approximately $500 million. The increased ownership by Merrill Lynch will enable the firm to continue to build its important presence as one of the leading securities firms in India. Hemendra Kothari will continue as Chairman of DSP Merrill Lynch, and will take on added responsibility as a Vice Chairman of Merrill Lynch International supporting Merrill Lynch's growth plans internationally and assisting Indian companies in their global endeavors. He will also become a member of the Merrill Lynch Asia Pacific Executive Management Committee. Merrill Lynch's relationship with DSP began in the 1980's and grew into a joint venture in 1995. The business will continue to operate under the DSP Merrill Lynch name.

"We have tremendous confidence in Hemendra Kothari and the talented team at DSP Merrill Lynch," said Stan O'Neal, Chairman and CEO of Merrill Lynch. "As a result of this change we will be able to accelerate our plans for growth in this robust market. I am also very pleased that Hemendra has agreed to take on these additional responsibilities."

"Merrill Lynch has been an excellent partner for DSP over the last 20 years and I could not have been more fortunate to have them as a partner," said Hemendra Kothari. "Its global distribution network, product capabilities, client franchise, infrastructure, and highly regarded brand provide an exceptional platform to service our clients."

The deal is expected to close in the first half of 2006 and is subject to various regulatory approvals.

As part of the transaction, DSPML Fund Managers, a wholly-owned asset management subsidiary of DSPML, will continue to be operated as a joint venture jointly owned by DSPML which will own 40 percent, and Hemendra Kothari and related entities, who will own 60 percent.

Merrill Lynch will make an offer for the publicly traded shares of DSPML and will make an application for delisting from the Bombay Stock Exchange.

DSP Merrill Lynch Limited (DSPML) is one of India's leading investment banking and wealth management companies. DSP and Merrill Lynch have had a joint venture relationship since 1995 from a long-standing relationship between DSP Financial Consultants Limited, and Merrill Lynch. DSPML was ranked in 2005 by Financeasia magazine as India's "Best Investment Bank" and "Best Equity House." Euromoney named DSPML India's "Best M&A House" and "Best Private Bank," while Asiamoney voted the firm India's number one house in "Overall Country Research", "Execution", "Sales Service" and "SalesTrading."

Merrill Lynch is one of the world's leading wealth management, capital markets and advisory companies, with offices in 36 countries and territories and total client assets of approximately $1.7 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. Through Merrill Lynch Investment Managers, the company is one of the world's largest managers of financial assets. Firm wide, assets under management total $524 billion. For more information on Merrill Lynch, please visit www.ml.com.