BlackRock to Acquire Fund of Funds Business from Quellos Group, LLC, Expanding Alternative Investment Management Capabilities

BlackRock, Inc. (NYSE:BLK) and Quellos Group, LLC today announced
that they have entered into a definitive agreement under which
BlackRock will acquire the fund of funds business of Quellos for up to
$1.7 billion. The combined business will comprise one of the largest
fund of funds platforms in the world, with over $25.4 billion in
assets under management. Products, including hedge, private equity and
real asset fund of funds, as well as specialty and hybrid offerings,
are managed on behalf of institutional and individual investors
worldwide.

Under the terms of the transaction, which has been approved by the
Board of Directors of BlackRock, Quellos Group, LLC will receive at
closing $562 million in cash and $188 million in BlackRock common
stock. In addition, Quellos Group, LLC may receive up to an additional
$970 million in cash and stock over three and a half years contingent
on certain measures. A substantial portion of after-tax cash proceeds
will be reinvested for ten years in products managed by the fund of
funds investment professionals.

"We are extremely excited to welcome the Quellos team to
BlackRock," commented Laurence D. Fink, BlackRock Chairman and CEO.
"We have worked with Quellos for a number of years as a sub-advisor
for their clients. We have long admired the discipline with which they
have built and continue to operate their alternative investment
business.

"Following closing, we will combine our hedge and private equity
fund of funds activities on a unified platform. This will bring
together a strong line-up of complementary products and exceptionally
talented and experienced professionals who share a commitment to
disciplined investment processes using extensive risk management
capabilities. Importantly, the teams also share a client-centric
culture that reflects their passion for investment and operational
excellence.

"In the face of challenging market and business conditions, our
clients around the globe are pursuing a wider array of investments and
strategies, including absolute return products, portable alpha and
liability-driven investing. Fund of funds are being more widely used
in these strategies and the combined expertise of BlackRock and
Quellos will enhance our ability to deliver innovative solutions to
our clients worldwide."

Jeffrey Greenstein, CEO of Quellos has announced his intention to
retire concurrent with the closing. He has agreed to serve as an
advisor to BlackRock to assist in the transition. Bryan White,
Quellos' Chief Investment Officer, will serve as global head of the
combined fund of funds platform, which will be branded under the name
BlackRock Alternative Advisors. There are no changes expected to the
investment strategy or style of existing offerings, each of which will
continue to be managed by members of their existing portfolio
management teams. Additionally, clients will benefit from Quellos'
tailored fund of funds research and client reporting systems, which
complement BlackRock's overall capabilities in global risk management.

The fund of hedge funds business will be integrated and will
benefit from the substantially greater research, technology, risk
management and operational capabilities of the broader business.
Howard Berkowitz will continue to lead investment strategy for
BlackRock's existing fund of hedge funds and will serve as Chairman of
the Investment Strategy Forum for the combined absolute return
business.

The private equity effort will include two very strong teams, each
of which will continue to manage their products in their respective
styles. Specifically, Russ Steenberg will continue to lead BlackRock's
existing private equity fund of funds business, which invests in
primary funds, secondary funds and direct co-investment opportunities
through core fund of funds, direct co-investment programs and other
offerings. Gene McDonald will continue to lead the Quellos private
equity fund of funds team, which manages both private equity and real
asset funds of funds with an emphasis on growth-oriented and venture
capital managers. The teams will benefit from each other's insights
and expertise, as well as the leverage afforded by the resources of
the larger fund of funds platform.

Mr. Greenstein remarked, "As co-founder of Quellos, I am
incredibly proud of the accomplishments of our team and the confidence
our clients have shown in us. Recognizing the future of investment
management, we are convinced that partnering with one of the world's
leading asset managers will afford significant strategic benefits for
our clients and great opportunities for our employees. I look forward
to ensuring a seamless transition for all of our clients and
employees."

Mr. White added, "The decision to join forces with BlackRock was
straightforward: we share a commitment to risk management and
disciplined investment processes, sophisticated investment technology,
a solutions-oriented approach to working with clients, and a culture
of innovation and excellence. We look forward to leveraging our
capabilities and BlackRock's global reach to better serve investors
throughout the world."

As has been previously reported, Quellos has been named in a
number of civil lawsuits in connection with activities related to
certain tax strategies. These businesses, which were always separate
and distinct from Quellos' fund of funds business, were discontinued a
number of years ago. Certain of these activities are the subject of
ongoing governmental investigations and Quellos is continuing to
cooperate with these inquiries. None of these activities will be
acquired and none of the related potential liabilities will be assumed
by BlackRock in this transaction.

BlackRock's acquisition of Quellos' fund of funds business is
expected to close on or about October 1, 2007, pending regulatory
approvals and satisfaction of other customary closing conditions. The
combined business will maintain a significant presence in Seattle,
Washington.

BlackRock was advised by Citi and Skadden Arps. Quellos was
advised by UBS and Paul, Weiss.

BlackRock Conference Call & Investor Presentation

Laurence Fink and Paul L. Audet, Chief Financial Officer of
BlackRock, will host a teleconference call for investors and analysts
on Tuesday, June 26, 2007, at 9:00 a.m. (Eastern Time) to discuss this
announcement. Members of the public who are interested in
participating in the teleconference should dial, from the United
States, (800) 374-0176, or from outside the United States, (706)
679-4634, shortly before 9:00 a.m. and reference the BlackRock
Conference Call (ID Number 5426970).

The teleconference will be available for replay by 12:00 p.m. on
Tuesday, June 26, 2007, and ending at midnight on Tuesday, July 3,
2007. To access the replay of the teleconference, callers from the
United States should dial (800) 642-1687 and callers from outside the
United States should dial (706) 645-9291 and enter the Conference ID
Number 5426970.

An investor presentation will also be available in the Investor
Relations section of BlackRock's website at www.blackrock.com prior to
the beginning of the teleconference call.

About BlackRock

BlackRock is one of the world's largest publicly traded investment
management firms. As of March 31, 2007, assets under management were
$1.154 trillion. The firm manages assets on behalf of institutions and
individuals worldwide through a variety of equity, fixed income, cash
management and alternative investment products. In addition, a growing
number of institutional investors use BlackRock Solutions(R)
investment system, risk management and financial advisory services.
Headquartered in New York City, the firm has approximately 5,000
employees in 18 countries and a major presence in key global markets,
including the U.S., Europe, Asia, Australia and the Middle BlackRock.
For additional information, please visit the Company's website at
www.BlackRock.com.

About Quellos

Quellos is among the largest fund of funds manager in the world
with over $20 billion of assets managed across a variety of
alternative investment products as of first quarter 2007. Clients
include public and private pension plans, foundations, endowments,
official institutions, financial institutions and high net worth
investors. Quellos was founded in 1994 by Jeffrey Greenstein and Bryan
White, and today consists of more than 290 employees in its Seattle
(WA) headquarters, New York, Durham (NC), London and Hong Kong.

Forward-Looking Statements

This press release, and other statements that BlackRock may make,
may contain forward-looking statements within the meaning of the
Private Securities Litigation Reform Act, with respect to BlackRock's
future financial or business performance, strategies or expectations.
Forward-looking statements are typically identified by words or
phrases such as "trend," "potential," "opportunity," "pipeline,"
"believe," "comfortable," "expect," "anticipate," "current,"
"intention," "estimate," "position," "assume," "outlook," "continue,"
"remain," "maintain," "sustain," "seek," "achieve," and similar
expressions, or future or conditional verbs such as "will," "would,"
"should," "could," "may" or similar expressions.

BlackRock cautions that forward-looking statements are subject to
numerous assumptions, risks and uncertainties, which change over time.
Forward-looking statements speak only as of the date they are made,
and BlackRock assumes no duty to and does not undertake to update
forward-looking statements. Actual results could differ materially
from those anticipated in forward-looking statements and future
results could differ materially from historical performance.

In addition to factors previously disclosed in BlackRock's SEC
reports and those identified elsewhere in this communication, the
following factors, among others, could cause actual results to differ
materially from forward-looking statements or historical performance:
(1) the introduction, withdrawal, success and timing of business
initiatives and strategies; (2) changes in political, economic or
industry conditions, the interest rate environment or financial and
capital markets, which could result in changes in demand for products
or services or in the value of assets under management; (3) the
relative and absolute investment performance of BlackRock's investment
products, including its separately managed accounts and the former
MLIM business; (4) the impact of increased competition; (5) the impact
of capital improvement projects; (6) the impact of future acquisitions
or divestitures; (7) the unfavorable resolution of legal proceedings;
(8) the extent and timing of any share repurchases; (9) the impact,
extent and timing of technological changes and the adequacy of
intellectual property protection; (10) the impact of legislative and
regulatory actions and reforms and regulatory, supervisory or
enforcement actions of government agencies relating to BlackRock,
Merrill Lynch or PNC; (11) terrorist activities and international
hostilities, which may adversely affect the general economy, domestic
and local financial and capital markets, specific industries, and
BlackRock; (12) the ability to attract and retain highly talented
professionals; (13) fluctuations in foreign currency exchange rates,
which may adversely affect the value of advisory fees earned by
BlackRock; (14) the impact of changes to tax legislation and,
generally, the tax position of the Company; (15) BlackRock's ability
to successfully integrate the MLIM business with its existing
business; (16) the ability of BlackRock to effectively manage the
former MLIM assets along with its historical assets under management;
(17) BlackRock's success in maintaining the distribution of its
products and (18) the ability of BlackRock to consummate the
transaction with Quellos and realize the benefits of such transaction.

BlackRock's Annual Reports on Form 10-K and BlackRock's subsequent
filings with the SEC, accessible on the SEC's website at
http://www.sec.gov and on BlackRock's website at
http://www.blackrock.com, discuss these factors in more detail and
identify additional factors that can affect forward-looking
statements. The information contained on our website is not a part of
this press release.