424B3 1 f424_020807-internet.txt MERRILL LYNCH/INTERNET HOLDRS PROSPECTUS SUPPLEMENT REGISTRATION NO. 333-78575 (To Prospectus February 17, 2006) File Pursuant to Rule 424(b)(3) [LOGO: Internet HOLDRS (SM) Trust] 1,000,000,000 Depositary Receipts Internet HOLDRS (SM) Trust This prospectus supplement supplements information contained in the prospectus dated February 17, 2006 relating to the sale of up to 1,000,000,000 depositary receipts by the Internet HOLDRS (SM) Trust. The share amounts specified in the table in the "Highlights of Internet HOLDRS" section of the base prospectus shall be replaced with the following: Primary Share Trading Name of Company Ticker Amounts Market -------------------------------- ------ -------- ------- Amazon.com, Inc. AMZN 18 NASDAQ CMGI Inc. CMGI 10 NASDAQ CNET Networks, Inc. CNET 4 NASDAQ EarthLink, Inc. ELNK 6.23 NASDAQ eBay Inc. EBAY 48 NASDAQ E*TRADE Financial Corporation(1) ETFC 12 NASDAQ McAfee, Inc. MFE 7 NYSE Priceline.com Incorporated PCLN 1.166666 NASDAQ RealNetworks, Inc. RNWK 8 NASDAQ TD Ameritrade HLDG Corp. AMTD 9 NASDAQ Time Warner Inc. TWX 42 NYSE Yahoo! Inc. YHOO 52 NASDAQ (1) Effective December 27, 2006, E*TRADE Financial Corp (NYSE Ticker: "ET"), an underlying constituent of the Internet HOLDRS Trust, changed its listing to NASDAQ and its Ticker to "ETFC." The share amounts listed in the table above reflect all previous stock splits, dividends and business combination transactions. The date of this prospectus supplement is December 31, 2006.