Merrill Lynch to Acquire Dutch Investment Manager

    Business Editors

    NEW YORK--(BUSINESS WIRE)--April 20, 2005--Merrill Lynch & Co. (NYSE: MER) announced today that its asset management business, Merrill Lynch Investment Managers, (MLIM) has agreed to acquire PPCC bv and PIM bv, the internal investment management units of Royal Philips Electronics (NYSE: PHG), as part of a strategic partnership with the Philips Pension Fund. The transaction includes a seven year contract to manage $16 billion in Philips Pension Fund in the Netherlands. Terms of the transaction were not disclosed.
    "The Netherlands is the second biggest pension market in Europe after the UK. This acquisition makes Merrill Lynch Investment Managers the largest non-domestic active manager in the country and will give potential Dutch clients a true alternative to local managers," said Robert McCann, EVP and vice chairman of the Merrill Lynch Wealth Management Group.
    The acquired units are based in Eindhoven, the Netherlands, with more than 50 employees. The transaction is expected to close in the second quarter. Upon closing, the units will operate under the MLIM name.
    "This transaction gives us a number of strategic benefits including accelerated growth in the Netherlands, a leadership position to conduct similar deals across Europe, and enhanced credibility in the growing area of liability-driven investing," said Robert Doll, president and chief investment officer of Merrill Lynch Investment Managers.
    "We are very pleased to have found long-term strategic owners for our asset management activities. The transaction should enable Philips and PPF to benefit from world-class expertise, and allow us to capitalize on our earlier investments in the business. The transaction will also open new and interesting career opportunities for PPCC's staff," said Jan Hommen, chief financial officer and vice chairman of Royal Philips Electronics.
    Merrill Lynch is one of the world's leading financial management and advisory companies with offices in 36 countries and total client assets of approximately $1.6 trillion. As an investment bank, it is a leading global underwriter of debt and equity securities and 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. Firmwide, assets under management total $479 billion. For more information on Merrill Lynch, please visit www.ml.com.

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CONTACT: Merrill Lynch & Co. Media Relations: Megan Frank, 212-449-7284 Megan_Frank@ml.com

KEYWORD: NEW YORK NETHERLANDS INTERNATIONAL EUROPE INDUSTRY KEYWORD: BANKING MERGERS/ACQ SOURCE: Merrill Lynch & Co.

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