-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, QPUdl9K8XLYcCLGqGrTO5hPnP/E67lVwTnXDUBQWrqDjOqbQByqwMu14JvKQjTGQ Y4E+P+KhWpYIcIi+5f+1oQ== 0000950130-01-000277.txt : 20010123 0000950130-01-000277.hdr.sgml : 20010123 ACCESSION NUMBER: 0000950130-01-000277 CONFORMED SUBMISSION TYPE: 424B4 PUBLIC DOCUMENT COUNT: 1 FILED AS OF DATE: 20010119 FILER: COMPANY DATA: COMPANY CONFORMED NAME: MERRILL LYNCH PIERCE FENNER & SMITH INC CENTRAL INDEX KEY: 0000728612 STANDARD INDUSTRIAL CLASSIFICATION: ASSET-BACKED SECURITIES [6189] STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 424B4 SEC ACT: SEC FILE NUMBER: 333-44286 FILM NUMBER: 1511568 BUSINESS ADDRESS: STREET 1: NORTH TOWER WORLD FINANCIAL CENTER STREET 2: NORTH TOWER WORLD FINANCIAL CENTER 5TH F CITY: NEW YORK STATE: NY ZIP: 10281-1323 BUSINESS PHONE: 2124496202 MAIL ADDRESS: STREET 1: WORLD FINANCIAL CENTER STREET 2: NORTH TOWER 23RD FL CITY: NEW YORK STATE: NY ZIP: 10281-1323 424B4 1 0001.txt FINAL PROSPECTUS RULE NO. 424(b)(4) REGISTRATION NO. 333-44286 PROSPECTUS - ------------------ [LOGO OF HOLDRS] 1,000,000,000 Depositary Receipts Europe 2001 HOLDRS SM Trust The Europe 2001 HOLDRSSM Trust will issue Depositary Receipts called Europe 2001 HOLDRSSM representing your undivided beneficial ownership in the equity securities of a group of 49 specified companies that, as measured in terms of worldwide market capitalization on November 14, 2000, are among the largest European companies whose equity securities are listed for trading on the New York Stock Exchange or the American Stock Exchange or quoted on the Nasdaq National Market. The Bank of New York will be the trustee. You only may acquire, hold or transfer Europe 2001 HOLDRS in a round-lot amount of 100 Europe 2001 HOLDRS or round-lot multiples. Europe 2001 HOLDRS are separate from the underlying deposited equity securities that are represented by the Europe 2001 HOLDRS. For a list of the names and the number of shares of the companies that make up a Europe 2001 HOLDR, see "Highlights of Europe 2001 HOLDRS--The Europe 2001 HOLDRS" starting on page 9. Merrill Lynch, Pierce, Fenner & Smith Incorporated has sold 1,000,000 Europe 2001 HOLDRS in the initial distribution. The trust will issue the additional Europe 2001 HOLDRS on a continuous basis. Investing in Europe 2001 HOLDRS involves significant risks. See "Risk Factors" starting on page 4. The initial public offering price for a round-lot of 100 Europe 2001 HOLDRS will equal the sum of the closing market price on the primary U.S. trading market on January 17, 2001, the pricing date, for each deposited share multiplied by the share amount specified in this prospectus, plus an underwriting fee. Europe 2001 HOLDRS are neither interests in nor obligations of either the initial depositor, Merrill Lynch, Pierce, Fenner & Smith Incorporated, or The Bank of New York, as trustee. Before this issuance, there has been no public market for Europe 2001 HOLDRS. The Europe 2001 HOLDRS have been approved for listing on the American Stock Exchange under the symbol "EKH", subject to official notice of issuance. --------------- Neither the Securities and Exchange Commission nor any state securities commission has approved or disapproved these securities or determined if this prospectus is truthful or complete. Any representation to the contrary is a criminal offense.
Initial Price Underwriting to Public* Fee ------------- ------------ Per Europe 2001 HOLDR.......................... $98.12 2%
-------- * Includes underwriting fee. --------------- Merrill Lynch & Co. Robert W. Baird & Co. A.G. Edwards & Sons, Inc. First Union Securities, Inc. Legg Mason Wood Walker Morgan Keegan & Company, Inc. Incorporated
Raymond James & Associates, Inc. Sutro & Co. Incorporated Tucker Anthony Capital Markets --------------- The date of this prospectus is January 17, 2001. "HOLDRS" and "HOLding Company Depositary ReceiptS" are service marks of Merrill Lynch & Co., Inc. TABLE OF CONTENTS Summary..................................................................... 3 Risk Factors................................................................ 4 Highlights of Europe 2001 HOLDRS............................................ 9 The Trust................................................................... 16 Description of Europe 2001 HOLDRS........................................... 16 Description of The Underlying Securities.................................... 17 Description of The Depositary Trust Agreement............................... 19 Federal Income Tax Consequences............................................. 22 Erisa Considerations........................................................ 25 Plan of Distribution........................................................ 25 Legal Matters............................................................... 26 Where You Can Find More Information......................................... 26
--------------- This prospectus contains information you should consider when making your investment decision. With respect to information about Europe 2001 HOLDRS, you should rely only on the information contained in this prospectus. We have not authorized any other person to provide you with different information. If anyone provides you with different or inconsistent information, you should not rely on it. We are not making an offer to sell Europe 2001 HOLDRS in any jurisdiction where the offer or sale is not permitted. The Europe 2001 HOLDRS are not registered for public sale outside of the United States. Non-U.S. receipt holders should refer to "Federal Income Tax Consequences--Non-U.S. receipt holders" and we recommend that non-U.S. receipt holders consult their tax advisors regarding U.S. withholding and other taxes which may apply to ownership of the Europe 2001 HOLDRS or of the underlying securities through an investment in the Europe 2001 HOLDRS. 2 SUMMARY The Europe 2001 HOLDRS Trust will be formed under the depositary trust agreement, dated as of January 4, 2001 among The Bank of New York, as trustee, Merrill Lynch, Pierce, Fenner & Smith Incorporated, other depositors and the owners of the Europe 2001 HOLDRS. The trust is not a registered investment company under the Investment Company Act of 1940. The trust will hold equity securities issued by 49 specified companies. As measured in terms of worldwide market capitalization on November 14, 2000, these were among the 50 largest European companies whose equity securities were listed for trading on the New York Stock Exchange or the American Stock Exchange or quoted on the Nasdaq National Market. As a result of a merger of two of these companies, Glaxo Wellcome p.l.c. and SmithKline Beechman p.l.c., those 50 companies are now represented by the 49 companies initially included in the Europe 2001 HOLDRS. The number of shares of each company's equity securities held by the trust with respect to each round-lot of Europe 2001 HOLDRS is specified under "Highlights of Europe 2001 HOLDRS--The Europe 2001 HOLDRS." The securities included in the Europe 2001 HOLDRS consist of American depositary shares, New York registered shares, global shares or ordinary shares and are collectively referred to in this prospectus as equity securities, the securities or underlying securities. The New York Stock Exchange, the American Stock Exchange and the Nasdaq National Market are collectively referred to in this prospectus as U.S. stock markets. The trust will issue Europe 2001 HOLDRS that represent your undivided beneficial ownership interest in the securities held by the trust on your behalf. The Europe 2001 HOLDRS are separate from the underlying securities that are represented by the Europe 2001 HOLDRS. 3 RISK FACTORS An investment in Europe 2001 HOLDRS involves risks similar to investing in each of the underlying securities outside of the Europe 2001 HOLDRS. General Risk Factors . Loss of investment. Because the value of Europe 2001 HOLDRS directly relates to the value of the underlying securities, you may lose a substantial portion of your investment in the Europe 2001 HOLDRS if the underlying securities decline in value. . Discount trading price. Europe 2001 HOLDRS may trade at a discount to the aggregate value of the underlying securities. . Not necessarily consisting of the European companies with the largest market capitalization. The companies included in the Europe 2001 HOLDRS were among the 49 largest European companies whose securities are traded on a U.S. stock market, as measured by worldwide market capitalization on November 14, 2000. After November 14, 2000, one or more of the companies may no longer be one of the 49 European companies that are among those with the largest market capitalization of companies whose securities are traded on a U.S. stock market. In addition, as a result of a merger, acquisition or stock distribution of one or more of the companies included in the Europe 2001 HOLDRS, the securities of a company that is not presently part of the Europe 2001 HOLDRS may be included in the Europe 2001 HOLDRS. In this case, the Europe 2001 HOLDRS may no longer consist solely of securities issued by European companies with the largest market capitalization and, as a result of mergers, acquisitions and stock distributions, the Europe 2001 HOLDRS may in the future include the securities of companies that are not European. . No investigation of underlying securities. The underlying securities included in the Europe 2001 HOLDRS were selected by Merrill Lynch, Pierce, Fenner & Smith Incorporated based on the market capitalization of European issuers with securities traded on a U.S. stock market, without regard for the value, price performance, volatility or investment merit of the underlying securities. Consequently, the Europe 2001 HOLDRS Trust, the trustee, Merrill Lynch, Pierce, Fenner & Smith Incorporated, and their affiliates, have not performed any investigation or review of the selected companies, including the public filings by the companies. Investors and market participants should not conclude that the inclusion of a company is any form of investment recommendation by the trust, the trustee, Merrill Lynch, Pierce, Fenner & Smith Incorporated, or their affiliates. . Concentration of investment. As a result of market fluctuations and/or reconstitution events, an investment in Europe 2001 HOLDRS may represent a more concentrated investment in one or more of the underlying securities or one or more industries. A concentrated investment will reduce the diversification of the Europe 2001 HOLDRS and increase your exposure to the risks of concentrated investments. . Conflicting investment choices. In order to sell one or more of the underlying securities individually or to participate in a tender offer relating to one or more of the underlying securities, you will be required to cancel your Europe 2001 HOLDRS and receive delivery of each of the underlying securities. The cancellation of your Europe 2001 HOLDRS will allow you to sell individual underlying securities or to deliver individual underlying securities in a tender offer. The cancellation of Europe 2001 HOLDRS will involve payment of a cancellation fee to the trustee. . Trading halts. Trading in Europe 2001 HOLDRS on the American Stock Exchange may be halted if trading in one or more of the underlying securities is halted. Trading in Europe 2001 4 HOLDRS may be halted even if trading continues in some or all of the underlying securities. If trading is halted in the Europe 2001 HOLDRS, you will not be able to trade Europe 2001 HOLDRS and you will only be able to trade the underlying securities if you cancel your Europe 2001 HOLDRS and receive each of the underlying securities. . Delisting from the American Stock Exchange. If the number of companies whose securities are held in the trust falls below nine, the American Stock Exchange may consider delisting the Europe 2001 HOLDRS. If the Europe 2001 HOLDRS are delisted by the American Stock Exchange, a termination event will result unless the Europe 2001 HOLDRS are listed for trading on another U.S. national securities exchange or through Nasdaq NMS within five business days from the date the Europe 2001 HOLDRS are delisted. . Possible conflicts of interest. Merrill Lynch, Pierce, Fenner & Smith Incorporated, as initial depositor, has selected the underlying securities and may face possible conflicts of interest in connection with its activities. For example, Merrill Lynch, Pierce, Fenner & Smith Incorporated and its affiliates, collectively referred to as Merrill Lynch, may engage in investment banking and other activities, may provide services to issuers of the underlying securities in connection with its business, or may make purchases or sales, including establishing long or short positions, in the underlying securities for its own account. In addition, Merrill Lynch, Pierce, Fenner & Smith Incorporated, as initial depositor, will purchase, in the secondary market, the underlying securities that will be deposited into the trust. Merrill Lynch may make these purchases before the deposit into the trust, or it may borrow securities for the deposit and subsequently purchase the securities to repay to the lenders the securities previously borrowed. In either event, the purchases of the underlying securities will be made at various prices. As the initial offering price for the Europe 2001 HOLDRS will be based on the closing market price of each of the underlying securities on the pricing date, Merrill Lynch may recognize a gain on its purchases of the underlying securities. Specifically, if the closing market price for the underlying securities on the pricing date is higher than the price at which Merrill Lynch, Pierce, Fenner & Smith Incorporated, as initial depositor, purchases the underlying securities then it will recognize a gain in connection with such purchases. Merrill Lynch may recognize this gain on any of the underlying securities that comprise the Europe 2001 HOLDRS or on all of the underlying securities in the aggregate. The potential profit of Merrill Lynch also is affected by any hedging activities that it may engage in while it purchases the underlying securities in the secondary market for deposit into the trust. All of these activities may result in conflicts of interest with respect to the financial interest of Merrill Lynch, on the one hand, and, on the other hand, the initial selection of the underlying securities included in the Europe 2001 HOLDRS, Merrill Lynch's activity in the secondary market in the underlying securities, and the creation and cancellation of Europe 2001 HOLDRS by Merrill Lynch. . Temporary price increases in the underlying securities. Purchasing activity in the secondary trading market associated with acquiring the underlying securities for deposit into the trust may temporarily increase the market price of the deposited shares, which will result in a higher initial offering price for the Europe 2001 HOLDRS. Large volumes of purchasing activity, which may occur in connection with the issuance of Europe 2001 HOLDRS, particularly in connection with the initial issuance of Europe 2001 HOLDRS, could temporarily increase the market price of the underlying securities, resulting in a higher price on that date. This purchasing activity could create a temporary imbalance between the supply and demand of the underlying securities, thereby limiting the liquidity of the underlying securities due to a temporary increased demand for underlying securities. Temporary increases in the market price of the underlying securities may also occur as a result of the purchasing activity of other market participants. Other market participants may attempt to benefit from increases in the market price of the underlying securities that may occur as a 5 result of the increased purchasing activity in the underlying securities resulting from the issuance of the Europe 2001 HOLDRS. Consequently, prices for the underlying securities may decline immediately after the pricing date. If the trading prices for the underlying securities decline, the trading price of Europe 2001 HOLDRS will also decline. Risk Factors Specific to Companies Included in the Europe 2001 HOLDRS . The stock prices of some of the companies included in the Europe 2001 HOLDRS have been and will likely continue to be extremely volatile, which will directly affect the price volatility of the Europe 2001 HOLDRS, and you could lose all or part of your investment. The trading prices of the securities of some companies included in the Europe 2001 HOLDRS have been volatile. These stock prices could be subject to wide fluctuations in response to a variety of factors, including the following: . general market fluctuations; . interest rate and currency fluctuations; . general political and economic conditions, in Europe and throughout the world; . actual or anticipated variations in companies' quarterly operating results; . announcements of technological innovations or new services offered by competitors of the companies included in the Europe 2001 HOLDRS; . changes in financial estimates by securities analysts; . legal or regulatory developments affecting the companies included in the Europe 2001 HOLDRS; . announcements by competitors of the companies included in the Europe 2001 HOLDRS of significant acquisitions, strategic partnerships, joint ventures or capital commitments; . departures of key personnel; and . sales of securities of companies included in Europe 2001 HOLDRS in the open market. . The international operations of the companies included in the Europe 2001 HOLDRS expose them to risks associated with instability and changes in economic and political conditions, foreign currency fluctuations, changes in foreign regulations and other risks inherent to international business. The companies included in the Europe 2001 HOLDRS have international operations which are essential parts of their businesses. The risks of international business that these companies are exposed to include the following: . general economic, social and political conditions; . the difficulty of enforcing intellectual property rights, agreements and collecting receivables through certain foreign legal systems; . differing tax rates, tariffs, exchange controls or other similar restrictions; . currency fluctuations; . changes in, and compliance with, domestic and foreign laws and regulations which impose a range of restrictions on operations, trade practices, foreign trade and international investment decisions; and . reduction in the number or capacity of personnel in international markets. . It may be impossible to initiate legal proceedings or enforce judgments against many of the companies included in the Europe 2001 HOLDRS. The companies included in the Europe 6 2001 HOLDRS were incorporated under the laws of a jurisdiction other than the United States and a substantial portion of their assets are located outside the United States. As a result, it may be impossible to effect service of process within the United States on the companies included in the Europe 2001 HOLDRS or enforce judgments made against them in courts in the United States based on civil liability provisions of the securities laws of the United States. In addition, judgments obtained in the United States, especially those awarding punitive damages, may not be enforceable in foreign countries. . Potential voting impediments may exist with respect to the ownership of some of the underlying securities included in the Europe 2001 HOLDRS. Holders of American depositary shares, including those included in the Europe 2001 HOLDRS, may only exercise voting rights with respect to the securities represented by American depositary shares in accordance with the provisions of deposit agreements entered into in connection with the issuance of the American depositary shares. These deposit agreements may not permit holders of American depositary shares to exercise voting rights that attach to the securities underlying the American depositary shares without the issuer first instructing the depositary to send voting information to the holder of the American depositary share. Also, holders of American depository shares may not exercise voting rights unless they take a variety of steps, which include registration in the share registry of the company that has issued the securities underlying the American depositary shares. The cumulative effect of these steps may make it impractical for holders of American depositary shares to exercise the voting rights attached to the underlying securities. . Some of the underlying securities included in the Europe 2001 HOLDRS are not U.S. shares or American depositary shares and, as a result, may be subject to different procedures relating to the repayment of taxes and the activities of the transfer agent. The securities of some companies included in the Europe 2001 HOLDRS are subject to withholding tax on dividends and distributions. Some companies may not have special arrangements in place for refunding these withheld taxes. In such case, the holders of these securities will have to independently apply to a foreign tax authority for repayment of withheld taxes. In addition, some of the companies included in the Europe 2001 HOLDRS may also have a non-U.S. transfer agent and may hold the securities outside of the United States. Non-U.S. transfer agents are not subject to procedures that govern the activities of transfer agents in the United States. . The primary trading market of most of the underlying securities of Europe 2001 HOLDRS are not U.S. stock exchanges; accordingly, the trading volume of some of the underlying securities may be very low, which could adversely affect the market price of the Europe 2001 HOLDRS. In some cases, the trading volume of some of the underlying securities on a U.S. stock exchange is or may become limited. A low trading volume or liquidity of any of the underlying securities on U.S. stock exchange may adversely affect the market price of an underlying security and of the Europe 2001 HOLDRS. . Exchange rate fluctuations could adversely affect the market price of the underlying securities included in the Europe 2001 HOLDRS and the value of the dividends paid by those companies. The result of operations and the financial position of some of the companies underlying Europe 2001 HOLDRS are reported in local currencies. Exchange rate fluctuations between these currencies and the U.S. dollar may adversely affect the market price of the U.S. exchange listed security and the Europe 2001 HOLDRS. In addition, any dividends that are declared, if any, will likely be set in terms of a currency other than U.S. dollars. As a result, exchange rate fluctuations may also negatively affect the value of dividends declared by many of the companies included in the Europe 2001 HOLDRS. . Many of the companies included in the Europe 2001 HOLDRS are companies which are involved in the technology and telecommunications industries and are subject to the risks associated with an investment in companies in those industries. The valuations of many technology and telecommunications companies are extraordinarily high based on 7 conventional valuation standards, such as price to earnings and price to sales ratios. As a result, the valuations of companies in these industries, and the trading prices for their stock, may not be sustained. In addition, a company which operates in these industries is exposed to other risks which include the following: . the need to keep pace with rapid technological change in order to remain competitive and to prevent the obsolescence of their products and services; . an inability to adequately protect proprietary rights; . changes in the regulatory environment in which telecommunications companies operate could affect their ability to offer new or existing products and services; and . the need to create and employ new technologies and to offer new services derived from these new technologies to remain competitive. An investment in the Europe 2001 HOLDRS may also be particularly vulnerable to these additional risks because of the significant number of technology and telecommunications companies included in the Europe 2001 HOLDRS. . Many of the companies included in the Europe 2001 HOLDRS are companies which are involved in the healthcare industry and are subject to the additional risks associated with an investment in companies in this industry. The stock prices of companies involved in the healthcare industry are subject to wide fluctuations in response to a variety of factors including: . announcements of technological innovations or new commercial products; . developments in patent or proprietary rights; . government regulatory initiatives; . government regulatory approval processes for product testing and commercialization; and . public concern as to the safety or other implications of healthcare products and services. An investment in the Europe 2001 HOLDRS may also be particularly vulnerable to these additional risks because of the significant number of healthcare companies included in the Europe 2001 HOLDRS. 8 HIGHLIGHTS OF EUROPE 2001 HOLDRS This discussion highlights information regarding Europe 2001 HOLDRS. We present certain information more fully in the rest of this prospectus. You should read the entire prospectus carefully before you purchase Europe 2001 HOLDRS. Issuer....................... Europe 2001 HOLDRS Trust. The trust.................... The Europe 2001 HOLDRS Trust will be formed under the depositary trust agreement, dated as of January 4, 2001 among The Bank of New York, as trustee, Merrill Lynch, Pierce, Fenner & Smith Incorporated, other depositors and the owners of the Europe 2001 HOLDRS. The trust is not a registered investment company under the Investment Company Act of 1940. Initial depositor............ Merrill Lynch, Pierce, Fenner & Smith Incorporated. Trustee...................... The Bank of New York, a New York state- chartered banking organization, will be the trustee and receive compensation as set forth in the depositary trust agreement. Purpose of Europe 2001 Europe 2001 HOLDRS are designed to achieve the HOLDRS....................... following: Diversification. Europe 2001 HOLDRS are designed to allow you to diversify your investments by holding the equity securities of 49 companies, that are among the largest European companies with securities traded on a U.S. stock market as measured in terms of worldwide market capitalization on November 14, 2000, through a single, exchange-listed instrument representing your undivided beneficial ownership of the underlying securities. Flexibility. The beneficial owners of Europe 2001 HOLDRS have undivided beneficial ownership interests in each of the underlying securities represented by the Europe 2001 HOLDRS, and can cancel their Europe 2001 HOLDRS to receive each of the underlying securities represented by the Europe 2001 HOLDRS. Transaction costs. The expenses associated with buying and selling Europe 2001 HOLDRS in the secondary market are expected to be less than separately buying and selling each of the underlying securities in a traditional brokerage account with transaction-based charges. Trust assets................. The trust will hold the equity securities of 49 companies that are among the largest European companies with securities traded on a U.S. stock market as measured in terms of worldwide market capitalization on November 14, 2000. The trust's assets may increase or decrease as a result of in-kind deposits and withdrawals of the underlying securities during the life of the trust. The Europe 2001 HOLDRS....... The trust will issue Europe 2001 HOLDRS that represent your undivided beneficial ownership interest in the shares of U.S.-traded securities held by the trust on your behalf. The Europe 2001 HOLDRS themselves are separate from the underlying securities that are represented by the Europe 2001 HOLDRS. 9 The specific share amounts for each round-lot of 100 Europe 2001 HOLDRS are set forth in the table below and were determined on January 16, 2001, so that the initial weightings of each underlying security included in the Europe 2001 HOLDRS will be approximately 2%. Since only whole share amounts are included in each round- lot of 100 Europe 2001 HOLDRS and because of fluctuations in closing market prices of the underlying securities, the initial weightings of each of the underlying securities will not be 2% and each could be significantly above or below 2%. The share amounts set forth below will not change, except for changes due to corporate events, such as stock splits or reverse stock splits on the underlying securities, or reconstitution events. However, the weightings are expected to change substantially over time because of price fluctuations. The following table provides the . names of the 49 issuers of the underlying securities represented by the Europe 2001 HOLDRS, . stock ticker symbols, . share amounts represented by a round-lot of 100 Europe 2001 HOLDRS as of January 16, 2001, . initial weightings as of January 16, 2001, and . principal U.S. market on which the underlying securities are traded.
Primary U.S. Share Initial Trading Name of Company Ticker Amounts Weightings Market --------------- ------ ------- ---------- ---------- AEGON N.V. AEG 5 2.02% NYSE Alcatel* ALA 3 2.06% NYSE Amdocs Limited DOX 3 2.41% NYSE ARM Holdings p.l.c.* ARMHY 8 1.97% Nasdaq NMS ASM International N.V. ASMI 13 1.96% Nasdaq NMS ASM Lithography Holding N.V. ASML 7 1.94% Nasdaq NMS AstraZeneca p.l.c.* AZN 4 2.06% NYSE Autonomy Corporation p.l.c.* AUTN 6 1.87% Nasdaq NMS Aventis S.A.* AVE 2 1.67% NYSE AXA* AXA 3 2.20% NYSE Bookham Technology p.l.c.* BKHM 12 2.06% Nasdaq NMS BP Amoco p.l.c.* BP 4 2.13% NYSE Business Objects S.A.*(/1/) BOBJ 3 1.89% Nasdaq NMS Cable & Wireless p.l.c.* CWP 4 1.80% NYSE DaimlerChrysler AG DCX 4 1.82% NYSE Deutsche Telekom AG* DT 5 1.86% NYSE Diageo p.l.c.* DEO 5 2.16% NYSE Elan Corporation, p.l.c.* ELN 4 2.06% NYSE LM Ericsson Telephone Company* ERICY 16 2.01% Nasdaq NMS GlaxoSmithKline p.l.c.*(/2/) GSK 6 3.45% NYSE Infineon Technologies AG* IFX 5 2.18% NYSE ING Groep N.V.* ING 2 1.66% NYSE IONA Technologies p.l.c.* IONA 3 1.90% Nasdaq NMS
10
Primary U.S. Share Initial Trading Name of Company Ticker Amounts Weightings Market --------------- ------ ------- ---------- ---------- Jazztel p.l.c.* JAZZ 11 2.04% Nasdaq NMS Koninklijke Philips Electronics N.V. PHG 5 2.13% NYSE KPNQuest N.V. KQIP 8 2.11% Nasdaq NMS Millicom International Cellular S.A. MICC 6 1.97% Nasdaq NMS Nokia Corp.* NOK 5 2.12% NYSE Novartis AG* NVS 5 2.22% NYSE QIAGEN N.V. QGENF 6 1.89% Nasdaq NMS Repsol YPF, S.A.* REP 11 2.09% NYSE Royal Dutch Petroleum Company RD 3 1.94% NYSE Ryanair Holdings p.l.c.* RYAAY 4 2.16% Nasdaq NMS SAP AG* SAP 4 1.79% NYSE Scottish Power p.l.c.* SPI 7 1.96% NYSE Serono S.A.* SRA 9 2.09% NYSE Shire Pharmaceuticals Group p.l.c.* SHPGY 4 2.25% Nasdaq NMS Smartforce p.l.c.* SMTF 6 2.12% Nasdaq NMS Sonera Group p.l.c.* SNRA 9 2.06% Nasdaq NMS STMicroelectronics N.V. STM 4 1.80% NYSE Telefonica S.A.* TEF 3 1.80% NYSE Terra Networks, S.A.* TRLY 15 2.05% Nasdaq NMS Total Fina Elf S.A.* TOT 3 2.35% NYSE UBS AG UBS 1 1.80% NYSE Unilever N.V. UN 3 1.85% NYSE United Pan-Europe Communications N.V.* UPCOY 13 1.96% Nasdaq NMS Vivendi Universal*(/3/) V 3 2.25% NYSE Vodafone Airtouch p.l.c.* VOD 6 2.15% NYSE WPP Group p.l.c.* WPPGY 3 1.90% Nasdaq NMS
-------- * The securities of this non-U.S. company trade in the United States as American depositary shares. Please see "Risk Factors" and "Federal Income Tax Consequences--Special considerations with respect to underlying securities of foreign issuers" for additional information relating to an investment in a non-U.S. company. (/1/) On December 11, 2000, Business Objects S.A. announced a three-for-two stock split on its common stock payable to shareholders of record as of February 22, 2001. Subject to shareholder approval, on February 22, 2001, the share amount of Business Objects, represented by a round-lot of 100 Europe 2001 HOLDRS, will be 4.5. (/2/) On December 27, 2000, the merger between Glaxo Wellcome p.l.c. and SmithKline Beechman p.l.c. was completed, forming the combined company GlaxoSmithKline p.l.c. GlaxoSmithKline's American depositary receipts trade on the New York Stock Exchange under the symbol "GSK". The share amount of GlaxoSmithKline included in the Europe 2001 HOLDRS reflects the combined share amounts of Glaxo Wellcome and SmithKline Beechman that would have been included in the Europe 2001 HOLDRS prior to the merger. As a result, the initial weighting of GlaxoSmithKline exceeds 2%. (/3/) On December 8, 2000, Vivendi changed its name to Vivendi Universal. These companies are among the 49 largest European companies measured in terms of worldwide market capitalization on November 14, 2000, with securities traded on a U.S. stock market. The market capitalization of a company is determined by multiplying the market price of its securities by the number of its outstanding securities. 11 The trust only will issue and cancel, and you only may obtain, hold, trade or surrender Europe 2001 HOLDRS in a round-lot of 100 Europe 2001 HOLDRS and round-lot multiples. The trust will only issue Europe 2001 HOLDRS upon the deposit of the whole shares represented by a round-lot of 100 Europe 2001 HOLDRS. In the event that a fractional share comes to be represented by a round-lot of Europe 2001 HOLDRS, the trust may require a minimum of more than one round-lot of 100 Europe 2001 HOLDRS for an issuance so that the trust will always receive whole share amounts for issuance of Europe 2001 HOLDRS. The number of outstanding Europe 2001 HOLDRS will increase and decrease as a result of in- kind deposits and withdrawals of the underlying securities. The trust will stand ready to issue additional Europe 2001 HOLDRS on a continuous basis when an investor deposits the required securities with the trustee. Public offering price........ The initial public offering price for 100 Europe 2001 HOLDRS will equal the sum of the closing market price on the primary U.S. trading market on January 17, 2001, the pricing date, for each underlying security multiplied by the share amount to be determined on the pricing date, plus an underwriting fee. Purchases.................... After the initial offering, you may acquire Europe 2001 HOLDRS in two ways: . through an in-kind deposit of the required number of securities of the underlying issuers with the trustee, or . through a cash purchase in the secondary trading market. Underwriting fees............ If you purchase Europe 2001 HOLDRS in the initial public offering, you will pay an underwriting fee equal to 2%. You will not be charged any issuance fee or other sales commission in connection with purchases of Europe 2001 HOLDRS made in the initial public offering. Issuance and cancellation After the initial offering, if you wish to fees......................... create Europe 2001 HOLDRS by delivering to the trust the requisite securities represented by a round-lot of 100 Europe 2001 HOLDRS, The Bank of New York as trustee will charge you an issuance fee of up to $10.00 for each round-lot of 100 Europe 2001 HOLDRS. If you wish to cancel your Europe 2001 HOLDRS and withdraw your underlying securities, The Bank of New York as trustee will charge you a cancellation fee of up to $10.00 for each round-lot of 100 Europe 2001 HOLDRS. Commissions.................. If you choose to deposit underlying securities in order to receive Europe 2001 HOLDRS after the conclusion of the initial public offering, you will not be charged the underwriting fee. However, in addition to the issuance fee charged by the trustee described above, you will be responsible for paying any sales commission associated with your purchase of the underlying securities that is charged by your broker. 12 Custody fees................. The Bank of New York, as trustee and as custodian, will charge you a quarterly custody fee of $2.00 for each round-lot of 100 Europe 2001 HOLDRS, to be deducted from any cash dividend or other cash distributions on underlying securities received by the trust. With respect to the aggregate custody fee payable in any calendar year for each Europe 2001 HOLDR, the trustee will waive that portion of the fee which exceeds the total cash dividends and other cash distributions received, or to be received, and payable with respect to such calendar year. Rights relating to Europe 2001 HOLDRS.................. You have the right to withdraw the underlying securities upon request by delivering a round- lot or integral multiple of a round-lot of Europe 2001 HOLDRS to the trustee, during the trustee's business hours, and paying the cancellation fees, taxes, and other charges. You should receive the underlying securities no later than the business day after the trustee receives a proper notice of cancellation. The trustee will not deliver fractional shares of underlying securities. To the extent that any cancellation of Europe 2001 HOLDRS would otherwise require the delivery of a fractional share, the trustee will sell such share in the market and the trust, in turn, will deliver cash in lieu of such share. Except with respect to the right to vote for dissolution of the trust, the Europe 2001 HOLDRS themselves will not have voting rights. Rights relating to the underlying securities........ You have the right to: . Receive all shareholder disclosure materials, including annual and quarterly reports, distributed by the issuers of the underlying securities. . Receive all proxy materials distributed by the issuers of the underlying securities and to instruct the trustee to vote the underlying securities or attend shareholder meetings yourself. . Receive dividends and other distributions on the underlying securities, if any are declared and paid to the trustee by an issuer of the underlying securities, net of any applicable taxes or fees. However, any distribution of securities by an issuer of underlying securities will be deposited into the trust and will become part of the Europe 2001 HOLDRS if the securities are listed for trading on a U.S. national securities exchange or through Nasdaq NMS. If you wish to participate in a tender offer for underlying securities, you must obtain the underlying securities by surrendering your Europe 2001 HOLDRS and receiving all of your underlying securities. For specific information about obtaining your underlying securities, you should read the discussion under the caption "Description of the Depositary Trust Agreement." 13 Reconstitution events........ The depositary trust agreement provides for the automatic distribution of underlying securities from the Europe 2001 HOLDRS to you in the following four circumstances: A. If an issuer of underlying securities no longer has a class of securities registered under section 12 of the Securities Exchange Act of 1934, then its securities will no longer be an underlying security and the trustee will distribute the shares of that company to the owners of the Europe 2001 HOLDRS. B. If the SEC finds that an issuer of underlying securities should be registered as an investment company under the Investment Company Act of 1940, and the trustee has actual knowledge of the SEC finding, then the trustee will distribute the shares of that company to the owners of the Europe 2001 HOLDRS. C. If the underlying securities of an issuer cease to be outstanding as a result of a merger, consolidation or other corporate combination, the trustee will distribute the consideration paid by and received from the acquiring company to the beneficial owners of Europe 2001 HOLDRS, unless the consideration received is securities that are listed for trading on a U.S. national securities exchange or through Nasdaq NMS. In this case, the securities received will be treated as additional underlying securities and will be deposited into the trust. D. If an issuer's underlying securities are delisted from trading on a U.S. national securities exchange or through Nasdaq NMS and are not listed for trading on another U.S. national securities exchange or through Nasdaq NMS within five business days from the date the securities are delisted. If a reconstitution event occurs, the trustee will deliver the underlying security to you as promptly as practicable after the date that the trustee has knowledge of the occurrence of a reconstitution event. However, any distribution of securities that are listed for trading on a U.S. national securities exchange or through Nasdaq NMS will be deposited into the trust and will become part of the Europe 2001 HOLDRS. Termination events........... A. The Europe 2001 HOLDRS are delisted from the American Stock Exchange and are not listed for trading on another U.S. national securities exchange or through Nasdaq NMS within five business days from the date the Europe 2001 HOLDRS are delisted. B. The trustee resigns and no successor trustee is appointed within 60 days from the date the trustee provides notice to Merrill Lynch, Pierce, Fenner & Smith Incorporated, as initial depositor, of its intent to resign. C. 75% of beneficial owners of outstanding Europe 2001 HOLDRS vote to dissolve and liquidate the trust. 14 If a termination event occurs, the trustee will distribute the underlying securities to you as promptly as practicable after the termination event. Federal income tax The federal income tax laws will treat a U.S. consequences................. holder of Europe 2001 HOLDRS as directly owning the underlying securities. The Europe 2001 HOLDRS themselves will not result in any federal tax consequences separate from the tax consequences associated with ownership of the underlying securities. Listing...................... The Europe 2001 HOLDRS have been approved for listing on the American Stock Exchange under the symbol "EKH", subject to official notice of issuance. Trading will take place only in round-lots of 100 Europe 2001 HOLDRS and round- lot multiples. A minimum of 150,000 Europe 2001 HOLDRS will be required to be outstanding when trading begins. Trading...................... Investors only will be able to acquire, hold, transfer and surrender a round-lot of 100 Europe 2001 HOLDRS. Bid and ask prices, however, will be quoted per single Europe 2001 HOLDR. Clearance and settlement..... The trust will issue Europe 2001 HOLDRS in book-entry form. Europe 2001 HOLDRS will be evidenced by one or more global certificates that the trustee will deposit with The Depository Trust Company, referred to as DTC. Transfers within DTC will be in accordance with DTC's usual rules and operating procedures. For further information see "Description of Europe 2001 HOLDRS." 15 THE TRUST General. This discussion highlights information about the Europe 2001 HOLDRS Trust. You should read this information and information about the depositary trust agreement, as well as the depositary trust agreement before you purchase Europe 2001 HOLDRS. The material terms of the depositary trust agreement are described in this prospectus under the heading "Description of the depositary trust agreement." The Europe 2001 HOLDRS Trust. The trust will be formed pursuant to the depositary trust agreement, dated as of January 4, 2001. The Bank of New York will be the trustee. The Europe 2001 HOLDRS Trust is not a registered investment company under the Investment Company Act of 1940. The Europe 2001 HOLDRS Trust is intended to hold deposited shares for the benefit of owners of Europe 2001 HOLDRS. The trustee will perform only administrative and ministerial acts. The property of the trust will consist of the underlying securities and all monies or other property, if any, received by the trustee. The trust will terminate on December 31, 2041, or earlier if a termination event occurs. DESCRIPTION OF EUROPE 2001 HOLDRS The trust will issue Europe 2001 HOLDRS under the depositary trust agreement described in this prospectus under the heading "Description of the Depositary Trust Agreement." After the initial offering, the trust may issue additional Europe 2001 HOLDRS on a continuous basis when an investor deposits the requisite underlying securities with the trustee. You may only acquire, hold, trade and surrender Europe 2001 HOLDRS in a round-lot of 100 Europe 2001 HOLDRS and round-lot multiples. The trust will only issue Europe 2001 HOLDRS upon the deposit of the whole shares of underlying securities that are represented by a round-lot of 100 Europe 2001 HOLDRS. In the event of a stock split, reverse stock split, or other distribution by the issuer of an underlying security that results in a fractional share becoming represented by a round-lot of Europe 2001 HOLDRS, the trust may require a minimum of more than one round-lot of 100 Europe 2001 HOLDRS for an issuance so that the trust will always receive whole share amounts for issuance of Europe 2001 HOLDRS. Europe 2001 HOLDRS will represent your individual and undivided beneficial ownership interest in the specified underlying securities. The 49 companies selected as part of this receipt program are listed above in the section entitled "Highlights of Europe 2001 HOLDRS--The Europe 2001 HOLDRS." Beneficial owners of Europe 2001 HOLDRS will have the same rights and privileges as they would have if they beneficially owned the underlying securities outside of the trust. These include the right of investors to instruct the trustee to vote the securities, and to receive dividends and other distributions on the underlying securities, if any are declared and paid to the trustee by an issuer of an underlying security, as well as the right to cancel Europe 2001 HOLDRS to receive the underlying securities. See "Description of the Depositary Trust Agreement." Europe 2001 HOLDRS are not intended to change your beneficial ownership in the underlying securities under federal securities laws, including sections 13(d) and 16(a) of the Securities Exchange Act of 1934. The trust will not publish or otherwise calculate the aggregate value of the underlying securities represented by a receipt. Europe 2001 HOLDRS may trade in the secondary market at prices that are lower than the aggregate value of the corresponding underlying securities. If, in such case, an owner of Europe 2001 HOLDRS wishes to realize the dollar value of the underlying securities, that owner will have to cancel the Europe 2001 HOLDRS. Such cancellation will require payment of fees and expenses as described in "Description of the Depositary Trust Agreement--Withdrawal of underlying securities." 16 Europe 2001 HOLDRS will be evidenced by one or more global certificates that the trustee will deposit with DTC and register in the name of Cede & Co., as nominee for DTC. Europe 2001 HOLDRS will be available only in book-entry form. Owners of Europe 2001 HOLDRS may hold their Europe 2001 HOLDRS through DTC, if they are participants in DTC, or indirectly through entities that are participants in DTC. DESCRIPTION OF THE UNDERLYING SECURITIES Selection criteria. The underlying securities of the Europe 2001 HOLDRS are the equity securities of a group of 49 specified companies which were among the largest European companies whose securities are traded on a U.S. stock market, as measured in terms of worldwide market capitalization on November 14, 2000. The market capitalization of a company is determined by multiplying the market price of its securities by the number of its outstanding securities. After November 14, 2000, one or more of the issuers of the underlying securities may no longer be one of the 49 European companies that are among those with the largest market capitalization of companies whose securities are traded on a US stock market. In this case, the Europe 2001 HOLDRS may consist of securities issued by European companies that do not have the largest market capitalization. In addition, as a result of a reconstitution event or a distribution of securities, the securities of a non-European company may be included in the Europe 2001 HOLDRS. Merrill Lynch, Pierce, Fenner & Smith Incorporated will determine, in its sole discretion, whether the issuer of a particular underlying security continues to have a leading market capitalization and will undertake to make adequate disclosure when necessary. Underlying securities. For a list of the underlying securities represented by Europe 2001 HOLDRS, please refer to "Highlights of Europe 2001 HOLDRS--The Europe 2001 HOLDRS." If the underlying securities change because of a reconstitution event or as a result of a distribution of securities, a revised list of underlying securities will be set forth in a prospectus supplement and will be available from the American Stock Exchange and through a widely used electronic information dissemination system such as Bloomberg or Reuters. No investigation. In selecting the underlying securities, the trust, the trustee, Merrill Lynch, Pierce, Fenner & Smith Incorporated, and any affiliate of these entities, have not performed any investigation or review of the selected companies, including the public filings by the companies, other than to the extent required to determine whether the companies satisfied the program's stated selection criteria. Accordingly, before you acquire Europe 2001 HOLDRS, you should consider publicly available financial and other information about the issuers of the underlying securities. See "Risk Factors" and "Where You Can Find More Information." Investors and market participants should not conclude that the inclusion of a company in the list is any form of investment recommendation of that company by the trust, the trustee, Merrill Lynch, Pierce, Fenner & Smith Incorporated, the selling group or any of their affiliates. General background and historical information. For a brief description of the business of each of the issuers of the underlying securities and monthly pricing information showing the historical performance of each underlying issuer's securities see "Annex A." 17 The following table and graph set forth the composite performance of all of the underlying securities represented by a single Europe 2001 HOLDR based upon the share amounts set forth in the table on page 10 of this prospectus, measured at the close of each business day from July 27, 2000, the first date when all of the underlying securities were publicly traded, to January 16, 2001. The performance table and graph data are adjusted for any splits that may have occurred over the measurement period. Past movements of the underlying securities are not necessarily indicative of future values.
2000 Value - ---- ------ July 27......... 126.56 July 28......... 122.65 July 31......... 123.70 August 1........ 122.79 August 2........ 121.32 August 3........ 119.40 August 4........ 120.23 August 7........ 122.81 August 8........ 121.46 August 9........ 120.92 August 10....... 121.20 August 11....... 121.23 August 14....... 122.54 August 15....... 123.05 August 16....... 122.97 August 17....... 123.85 August 18....... 123.38 August 21....... 122.71 August 22....... 121.75 August 23....... 121.09 August 24....... 122.16 August 25....... 122.70 August 28....... 123.40 August 29....... 122.71 August 30....... 123.36 August 31....... 126.99 September 1..... 130.30 September 5..... 127.49 September 6..... 122.68 September 7..... 123.86
2000 Value - ---- ------ September 8..... 120.61 September 11.... 119.02 September 12.... 118.83 September 13.... 118.20 September 14.... 119.42 September 15.... 117.34 September 18.... 114.71 September 19.... 116.69 September 20.... 112.92 September 21.... 111.38 September 22.... 113.39 September 25.... 112.43 September 26.... 111.76 September 27.... 112.64 September 28.... 114.38 September 29.... 111.76 October 2....... 112.09 October 3....... 111.04 October 4....... 111.45 October 5....... 110.94 October 6....... 107.08 October 9....... 105.53 October 10...... 103.90 October 11...... 100.30 October 12...... 96.78 October 13...... 101.25 October 16...... 100.32 October 17...... 97.29 October 18...... 95.28 October 19...... 100.23
2000 Value - ---- ------ October 20...... 100.76 October 23...... 100.45 October 24...... 102.73 October 25...... 98.15 October 26...... 100.11 October 27...... 101.86 October 30...... 101.31 October 31...... 104.58 November 1...... 103.98 November 2...... 105.24 November 3...... 106.46 November 6...... 106.15 November 7...... 104.91 November 8...... 102.43 November 9...... 100.74 November 10..... 96.46 November 13..... 95.04 November 14..... 98.84 November 15..... 98.78 November 16..... 95.62 November 17..... 95.03 November 20..... 91.38 November 21..... 91.21 November 22..... 87.25 November 24..... 92.15 November 27..... 93.17 November 28..... 89.55 November 29..... 89.40 November 30..... 87.29 December 1...... 89.89
2000 Value - ---- ----- December 4...... 90.15 December 5...... 95.44 December 6...... 94.11 December 7...... 93.68 December 8...... 96.50 December 11..... 97.74 December 12..... 96.66 December 13..... 94.58 December 14..... 93.10 December 15..... 91.05 December 18..... 90.22 December 19..... 89.77 December 20..... 85.84 December 21..... 86.18 December 22..... 88.27 December 26..... 88.35 December 27..... 89.18 December 28..... 90.24 December 29..... 89.70 2001 Value - ---- ----- January 2....... 87.55 January 3....... 91.22 January 4....... 89.90 January 5....... 88.45 January 8....... 88.25 January 9....... 87.55 January 10...... 88.97 January 11...... 93.28 January 12...... 94.64 January 16...... 92.92
18 DESCRIPTION OF THE DEPOSITARY TRUST AGREEMENT General. The depositary trust agreement, dated as of January 4, 2001, among Merrill Lynch, Pierce, Fenner & Smith Incorporated, The Bank of New York, as trustee, other depositors and the owners of the Europe 2001 HOLDRS, provides that Europe 2001 HOLDRS will represent an owner's undivided beneficial ownership interest in the securities of the underlying companies. The trustee. The Bank of New York will serve as trustee. The Bank of New York, which was founded in 1784, was New York's first bank and is the oldest bank in the country still operating under its original name. The Bank is a state-chartered New York banking corporation and a member of the Federal Reserve System. The Bank conducts a national and international wholesale banking business and a retail banking business in the New York City, New Jersey and Connecticut areas, and provides a comprehensive range of corporate and personal trust, securities processing and investment services. In addition, The Bank of New York acts as depositary for some foreign issuers whose American depositary shares are included in the Europe 2001 HOLDRS. Issuance, transfer and surrender of Europe 2001 HOLDRS. You may create and cancel Europe 2001 HOLDRS only in round-lots of 100 Europe 2001 HOLDRS. You may create Europe 2001 HOLDRS by delivering to the trustee the requisite underlying securities. The trust will only issue Europe 2001 HOLDRS upon the deposit of the whole shares represented by a round-lot of 100 Europe 2001 HOLDRS. In the event that a fractional share comes to be represented by a round-lot of Europe 2001 HOLDRS, the trust may require a minimum of more than one round-lot of 100 Europe 2001 HOLDRS for an issuance so that the trust will always receive whole share amounts for issuance of Europe 2001 HOLDRS. Similarly, you must surrender Europe 2001 HOLDRS in integral multiples of 100 Europe 2001 HOLDRS to withdraw deposited shares from the trust. The trustee will not deliver fractional shares of underlying securities, and to the extent that any cancellation of Europe 2001 HOLDRS would otherwise require the delivery of fractional shares, the trust will deliver cash in lieu of such shares. You may request withdrawal of your deposited shares during the trustee's normal business hours. The trustee expects that in most cases it will deliver your deposited shares within one business day of your withdrawal request. Voting rights. The trustee will deliver you proxy soliciting materials provided by issuers of the deposited shares so as to permit you to give the trustee instructions as to how to vote on matters to be considered at any annual or special meetings held by issuers of the underlying securities. Under the depositary trust agreement, any beneficial owner of Europe 2001 HOLDRS, other than Merrill Lynch, Pierce, Fenner & Smith Incorporated owning Europe 2001 HOLDRS for its own proprietary account as principal, will have the right to vote to dissolve and liquidate the trust. Distributions. You will be entitled to receive, net of trustee fees, distributions of cash, including dividends, securities or property, if any, made with respect to the underlying securities. The trustee will use its reasonable efforts to ensure that it distributes these distributions as promptly as practicable after the date on which it receives the distribution. Therefore, you may receive your distributions substantially later than you would have had you held the underlying securities directly. Any distributions of securities by an issuer of underlying securities will be deposited into the trust and will become part of the Europe 2001 HOLDRS if such securities are listed for trading on a U.S. national securities exchange or through Nasdaq NMS. You will be obligated to pay any tax or other charge that may become due with respect to Europe 2001 HOLDRS. The trustee may deduct the amount of any tax or other governmental charge from a distribution before making payment to you. In addition, the trustee will deduct its quarterly custody fee of $2.00 for each round-lot of 100 Europe 2001 HOLDRS from quarterly dividends, if any, paid to the trustee by the issuers of the underlying securities. With respect to the aggregate custody fee payable in any calendar year for each Europe 2001 HOLDR, the trustee will waive that portion of the fee which exceeds the total cash dividends and other cash distributions received, or to be received, and payable with respect to such calendar year. 19 Record dates. With respect to dividend payments and voting instructions, the trustee expects to fix the trust's record dates as close as possible to the record date fixed by the issuer of the underlying securities. Shareholder communications. The trustee promptly will forward to you all shareholder communications that it receives from issuers of the underlying securities. Withdrawal of underlying securities. You may surrender your Europe 2001 HOLDRS and receive underlying securities during the trustee's normal business hours and upon the payment of applicable fees, taxes or governmental charges, if any. You should receive your underlying securities no later than the business day after the trustee receives your request. If you surrender Europe 2001 HOLDRS in order to receive underlying securities, you will pay to the trustee a cancellation fee of up to $10.00 per round-lot of 100 Europe 2001 HOLDRS. Further issuances of Europe 2001 HOLDRS. The depositary trust agreement provides for further issuances of Europe 2001 HOLDRS on a continuous basis without your consent. Reconstitution events. The depositary trust agreement provides for the automatic distribution of underlying securities to you in the following four circumstances: A. If an issuer of underlying securities no longer has a class of securities registered under section 12 of the Securities Exchange Act of 1934, then its securities will no longer be an underlying security and the trustee will distribute the shares of that company to the owners of the Europe 2001 HOLDRS. B. If the SEC finds that an issuer of underlying securities should be registered as an investment company under the Investment Company Act of 1940, and the trustee has actual knowledge of the SEC finding, then the trustee will distribute the shares of that company to the owners of the Europe 2001 HOLDRS. C. If the underlying securities of an issuer cease to be outstanding as a result of a merger, consolidation or other corporate combination, the trustee will distribute the consideration paid by and received from the acquiring company to the beneficial owners of Europe 2001 HOLDRS, unless the consideration received is securities that are listed for trading on a U.S. national securities exchange or through Nasdaq NMS. In this case, the securities received will be treated as additional underlying securities and will be deposited into the trust. D. If an issuer's underlying securities are delisted from trading on a U.S. national securities exchange or through Nasdaq NMS and are not listed for trading on another U.S. national securities exchange or through Nasdaq NMS within five business days from the date the securities are delisted. If a reconstitution event occurs, the trustee will deliver the underlying security to you as promptly as practicable after the date that the trustee has knowledge of the occurrence of a reconstitution event. However, any distributions of securities that are listed for trading on a U.S. securities exchange or through Nasdaq will be deposited into the trust and will become part of the Europe 2001 HOLDRS. Termination of the trust. The trust will terminate if the trustee resigns and no successor trustee is appointed by Merrill Lynch, Pierce, Fenner & Smith Incorporated, as initial depositor, within 60 days from the date the trustee provides notice to Merrill Lynch, Pierce, Fenner & Smith Incorporated, as initial depositor, of its intent to resign. Upon termination, the beneficial owners of Europe 2001 HOLDRS will surrender their Europe 2001 HOLDRS as provided in the depositary trust agreement, including payment of any fees of the trustee or applicable taxes or governmental charges due in connection with delivery to the owners of the underlying securities. The trust also will terminate if Europe 2001 HOLDRS are delisted from the American Stock Exchange and are not listed for trading on another U.S. national securities exchange or through Nasdaq NMS within 5 business days from the date the Europe 2001 HOLDRS are delisted. Finally, the trust will 20 terminate if 75% of the owners of outstanding Europe 2001 HOLDRS other than Merrill Lynch, Pierce, Fenner & Smith Incorporated vote to dissolve and liquidate the trust. If a termination event occurs, the trustee will distribute the underlying securities to you as promptly as practicable after the termination event occurs. Amendment of the depositary trust agreement. The trustee and Merrill Lynch, Pierce, Fenner & Smith Incorporated, as initial depositor, may amend any provisions of the depositary trust agreement without the consent of any other depositor or any of the owners of the Europe 2001 HOLDRS. Promptly after the execution of any amendment to the agreement, the trustee must furnish or cause to be furnished written notification of the substance of the amendment to each owner of Europe 2001 HOLDRS. Any amendment that imposes or increases any fees or charges, subject to exceptions, or that otherwise prejudices any substantial existing right of the owners of Europe 2001 HOLDRS will not become effective until 30 days after notice of the amendment is given to the owners of Europe 2001 HOLDRS. Issuance and cancellation fees. After the initial public offering, the trust expects to issue more Europe 2001 HOLDRS. If you wish to create Europe 2001 HOLDRS by delivering to the trust the requisite underlying securities, the trustee will charge you an issuance fee of up to $10.00 for each round-lot of 100 Europe 2001 HOLDRS. If you wish to cancel your Europe 2001 HOLDRS and withdraw your underlying securities, the trustee will charge you a cancellation fee of up to $10.00 for each round-lot of 100 Europe 2001 HOLDRS issued. The trustee may negotiate either of these fees depending on the volume, frequency and size of the issuance or cancellation transactions. Commissions. If you choose to create or cancel Europe 2001 HOLDRS after the conclusion of the initial public offering, you will not be charged the underwriting fee. However, in addition to the issuance and cancellation fees described above, you will be responsible for paying any sales commissions associated with your purchase of the underlying securities that are charged by your broker, whether it be any of the members of the selling group or another broker, in addition to the issuance or cancellation fee, as the case may be, described above. Custody fees. The Bank of New York, as trustee and as custodian, will charge you a quarterly custody fee of $2.00 for each round-lot of 100 Europe 2001 HOLDRS to be deducted from any dividend payments or other cash distributions on underlying securities received by the trustee. With respect to the aggregate custody fee payable in any calendar year for each Europe 2001 HOLDR, the Trustee will waive that portion of the fee which exceeds the total cash dividends and other cash distributions received, or to be received, and payable with respect to such calendar year. The trustee cannot recapture unpaid custody fees from prior years. Address of the trustee. The Bank of New York, ADR Department, 101 Barclay Street, New York, New York 10286. Governing law. The depositary trust agreement and Europe 2001 HOLDRS will be governed by the laws of the State of New York. The trustee will provide the depositary trust agreement to any owner of the underlying securities free of charge upon written request. Duties and immunities of the trustee. The trustee will assume no responsibility or liability for, and makes no representations as to, the validity or sufficiency, or as to the accuracy of the recitals, if any, set forth in the Europe 2001 HOLDRS. The trustee undertakes to perform only those duties as are specifically set forth in the depositary trust agreement. Subject to the preceding sentence, the trustee will be liable for its own negligence or misconduct except for good faith errors in judgment so long as the trustee was not negligent in ascertaining the relevant facts. 21 FEDERAL INCOME TAX CONSEQUENCES General The following is a summary of the U.S. federal income tax consequences relating to the Europe 2001 HOLDRS for: . a citizen or resident of the United States; . a corporation or partnership created or organized in the United States or under the laws of the United States; . an estate, the income of which is includible in gross income for U.S. federal income tax purposes regardless of its source; . a trust if a court within the United States is able to exercise primary supervision over the administration of the trust and one or more U.S. persons have the authority to control all substantial decisions of the trust (each of the above, a "U.S. receipt holder"); and . any person other than a U.S. receipt holder (a "non-U.S. receipt holder"). This summary is based upon laws, regulations, rulings and decisions currently in effect, all of which are subject to change, possibly on a retroactive basis. The discussion does not deal with all U.S. federal income tax consequences applicable to all categories of investors, some of which may be subject to special rules. In addition, this summary generally is limited to investors who will hold the Europe 2001 HOLDRS as "capital assets" (generally, property held for investment) within the meaning of section 1221 of the Internal Revenue Code of 1986, as amended. We recommend that you consult with your own tax advisor. Taxation of the trust The trust will provide for flow through tax consequences as it will be treated as a grantor trust or custodial arrangement for U.S. federal income tax purposes. Taxation of Europe 2001 HOLDRS A receipt holder purchasing and owning Europe 2001 HOLDRS will be treated, for U.S. federal income tax purposes, as directly owning a proportionate share of the underlying securities represented by Europe 2001 HOLDRS. Consequently, if there is a taxable cash distribution on an underlying security, a holder will recognize income with respect to the distribution at the time the distribution is received by the trustee, not at the time that the holder receives the cash distribution from the trustee. A receipt holder will determine its initial tax basis in each of the underlying securities by allocating the purchase price for the Europe 2001 HOLDRS among the underlying securities based on their relative fair market values at the time of purchase. Similarly, when a holder sells a receipt, it will determine the amount realized with respect to each security by allocating the sales price among the underlying securities based on their relative fair market values at the time of sale. A holder's gain or loss with respect to each security will be computed by subtracting its adjusted basis in the security from the amount realized on the security. With respect to purchases of Europe 2001 HOLDRS for cash in the secondary market, a receipt holder's aggregate tax basis in each of the underlying securities will be equal to the purchase price of the Europe 2001 HOLDRS. Similarly, with respect to sales of Europe 2001 HOLDRS for cash in the secondary market, the amount realized with respect to a sale of Europe 2001 HOLDRS will be equal to the aggregate amount realized with respect to each of the underlying securities. The distribution of any securities by the trust upon the surrender of Europe 2001 HOLDRS, the occurrence of a reconstitution event, or a termination event will not be a taxable event, except to the extent that 22 cash is distributed in lieu of fractional shares. The receipt holder's holding period with respect to the distributed securities will include the period that the holder held the securities through the trust. Brokerage fees and custodian fees The brokerage fee incurred in purchasing a receipt will be treated as part of the cost of the underlying securities. Accordingly, a holder includes this fee in its tax basis in the underlying securities. A holder will allocate the brokerage fee among the underlying securities using either a fair market value allocation or pro rata based on the number of shares of each underlying security. Similarly, the brokerage fee incurred in selling Europe 2001 HOLDRS will reduce the amount realized with respect to the underlying securities. A holder will be required to include in its income the full amount of dividends paid on the underlying securities, even though the depositary trust agreement provides that the custodian fees will be deducted directly from any dividends paid. These custodian fees will be treated as an expense incurred in connection with a holder's investment in the underlying securities and may be deductible. If a holder is an individual, estate or trust, however, the deduction of its share of custodian fees will be a miscellaneous itemized deduction that may be disallowed in whole or in part. Special considerations with respect to underlying securities of foreign issuers With respect to underlying securities of foreign issuers, the gross amount of any taxable cash distribution will not be eligible for the dividends received deduction generally allowed to corporate U.S. receipt holders. If a foreign issuer pays a dividend in a currency other than in U.S. dollars, the amount of the dividend for U.S. federal income tax purposes will be the U.S. dollar value (determined at the spot rate on the date of the payment) regardless of whether the payment is later converted into U.S. dollars. In this case, the U.S. receipt holder may recognize ordinary income or loss as a result of currency fluctuations between the date on which the dividend is paid and the date the dividend amount is converted into U.S. dollars. Subject to conditions and limitations, any foreign tax withheld on dividends may be deducted from taxable income or credited against a U.S. receipt holder's U.S. federal income tax liability. The limitation on foreign taxes eligible for the U.S. foreign tax credit is calculated separately with respect to specific classes of income. For this purpose, dividends distributed by a foreign issuer generally will constitute "passive income" or, in the case of some U.S. holders, "financial services income." For purposes of the U.S. foreign tax credit limitation, dividends received by a U.S. receipt holder with respect to an underlying security of a foreign issuer generally will be treated as foreign source income while any gain or loss recognized from the sale of such security generally will be treated as from sources within the United States. The rules relating to the determination of the foreign tax credit are complex and we recommend that U.S. receipt holders consult their own tax advisors to determine whether and to what extent a credit would be available. Dividends and distributions made by a foreign issuer may be subject to a withholding tax. Some foreign issuers have made arrangements through which holders of their American depositary shares or global shares can apply for a refund of withheld taxes. With respect to these issuers, it is expected that holders of Europe 2001 HOLDRS will be able to use these arrangements to apply for a refund of withheld taxes. In some cases, however, the holders of Europe 2001 HOLDRS will have to independently apply to a foreign tax authority for a refund of withheld taxes. Additionally, special U.S. federal income tax rules apply to U.S. persons owning shares of a "passive foreign investment company" (a "PFIC"). To our knowledge, none of the foreign issuers of the underlying securities is currently a PFIC and none anticipate becoming a PFIC in the future, although no assurances can be made that the applicable tax law or other relevant circumstances will not change in a manner which affects the 23 PFIC determination. A foreign corporation generally will be classified as a PFIC for U.S. federal income tax purposes in any taxable year in which, after applying relevant look-through rules, either: . at least 75% of its gross income is "passive income;" or . on average at least 50% of the gross value of its assets is attributable to assets that produce "passive income" or are held for the production of passive income. Passive income for this purpose generally includes dividends, interest, royalties, rents, and gains from commodities and securities transactions. If a corporation were classified as a PFIC, a U.S. receipt holder could be subject to increased tax liability, possibly including an interest charge, upon the sale or other disposition of the Europe 2001 HOLDRS or of the underlying securities or upon the receipt of "excess distributions," unless the U.S. receipt holder elected to be taxed currently on its pro rata portion of the corporation's income, whether or not the income was distributed in the form of dividends or otherwise. Non-U.S. receipt holders A non-U.S. receipt holder generally will be subject to U.S. withholding tax at a rate of 30% or a lower rate as may be specified by an applicable tax treaty with respect to dividends received on underlying securities of U.S. issuers. However, if that income is effectively connected with a U.S. trade or business conducted by the holder or, where a tax treaty applies, is attributable to a permanent establishment maintained in the United States by the holder, then those dividends will be exempt from withholding tax, provided the holder complies with applicable certification and disclosure requirements. A non-U.S. receipt holder generally will not be subject to U.S. federal income or withholding tax with respect to dividends received on underlying securities of foreign issuers, unless that income is effectively connected with a U.S. trade or business conducted by the holder or, where a tax treaty applies, is attributable to a permanent establishment maintained in the United States by the holder. With respect to dividends of both U.S. and foreign issuers, a non-U.S. receipt holder's dividends that are effectively connected with a U.S. trade or business or dividends attributable to a permanent establishment, net of relevant deductions and credits, will be subject to U.S. federal income taxation at the same graduated rates applicable to U.S. persons. In addition to this graduated tax, effectively connected dividends or dividends attributable to a permanent establishment received by a corporate non-U.S. receipt holder may also be subject to a branch profits tax at a rate of 30% or a lower rate as may be specified by an applicable tax treaty. Under some circumstances, a non- U.S. receipt holder whose dividends are so effectively connected or attributable shall be entitled to a dividends received deduction equal to 70% or 80% of the amount of the dividend. A non-U.S. receipt holder that is eligible for a reduced rate of withholding tax pursuant to a tax treaty may obtain a refund of any excess amounts withheld by filing an appropriate claim for refund with the Internal Revenue Service. A non-U.S. receipt holder generally will not be subject to U.S. federal income or withholding tax with respect to gain recognized upon the sale or other disposition of Europe 2001 HOLDRS or of the underlying securities unless: . that gain is effectively connected with a U.S. trade or business conducted by the holder or, where a tax treaty applies, is attributable to a permanent establishment maintained in the United States by the holder, . in the case of any gain realized by an individual non-U.S. receipt holder, the holder is present in the United States for 183 days or more in the taxable year of the sale or other disposition and certain other conditions are met, or 24 . the underlying securities issuer is or has been a U.S. real property holding corporation for U.S. federal income tax purposes at any time during the shorter of the five-year period ending on the date of the disposition or the period during which the non-U.S. receipt holder held the common stock of such issuer and (a) the common stock is not considered to be "regularly traded on an established securities market" or (b) the non-U.S. receipt holder owned, actually or constructively, at any time during the shorter of the periods described above, more than 5% of the common stock of such issuer. Effectively connected or attributable gains generally will be subject to U.S. federal income taxation at the same graduated rates applicable to U.S. persons, and may, in the case of a corporate non-U.S. receipt holder, also be subject to the branch profits tax. We recommend that non-U.S. receipt holders consult their own tax advisors to determine whether any applicable tax treaties provide for different rules. The preceding discussion does not address all aspects of U.S. federal income taxation that may be relevant in light of a non-U.S. receipt holder's or an issuer's particular facts and circumstances. We recommend that investors consult their own tax advisors. Backup withholding tax, withholding tax and information reporting requirements Final U.S. Treasury Regulations relating to backup withholding, withholding and information reporting have been issued that modify certain rules with respect to payments made after December 31, 2000. Investors are urged to consult their own tax advisors regarding the application of the backup withholding, withholding and information reporting requirements, including the new regulations, with respect to their particular circumstances. ERISA CONSIDERATIONS Any plan fiduciary which proposes to have a plan acquire Europe 2001 HOLDRS should consult with its counsel with respect to the potential applicability of ERISA and the Internal Revenue Code to this investment and whether any exemption would be applicable and determine on its own whether all conditions have been satisfied. Moreover, each plan fiduciary should determine whether, under the general fiduciary standards of investment prudence and diversification, an acquisition of Europe 2001 HOLDRS is appropriate for the plan, taking into account the overall investment policy of the plan and the composition of the plan's investment portfolio. PLAN OF DISTRIBUTION In accordance with the depositary trust agreement, the trust will issue to Merrill Lynch, Pierce, Fenner & Smith Incorporated, and Merrill Lynch, Pierce, Fenner & Smith Incorporated will deposit the underlying securities to receive Europe 2001 HOLDRS. Merrill Lynch, Pierce, Fenner & Smith Incorporated, Robert W. Baird & Co. Incorporated, A.G. Edwards & Sons, Inc., First Union Securities, Inc., Legg Mason Wood Walker, Incorporated, Morgan Keegan & Company, Inc., Raymond James & Associates, Inc., Sutro & Co. Incorporated and Tucker Anthony Incorporated, the selling group, propose to offer the Europe 2001 HOLDRS to the public at the offering price set forth on the cover page of this prospectus, which includes an underwriting fee of 2%. Investors who purchase Europe 2001 HOLDRS through a fee-based brokerage account should consider that the underwriting fee is in addition to the fees charged in that account. We recommend that investors review the terms of their brokerage accounts for details on applicable charges. Merrill Lynch, Pierce, Fenner & Smith Incorporated will provide Europe 2001 HOLDRS to the other members of the selling group at the public offering price, as set forth on the cover page of this prospectus, less 25 a concession that is not in excess of 1.5%. The selling group may allow to certain dealers, and the dealers may reallow, a discount on sales of Europe 2001 HOLDRS not in excess of 0.25% of the public offering price as set forth on the cover page of this prospectus. We expect the trust to deliver the initial distribution of Europe 2001 HOLDRS against deposit of the underlying securities in New York, New York on January 22, 2001. After the initial offering, the public offering price, concession and discount may be changed. The trust will continue to issue Europe 2001 HOLDRS in connection with deposits of underlying securities. This offering is being made in compliance with Conduct Rule 2810 of the National Association of Securities Dealers, Inc. Accordingly, sales will not be made to a discretionary account without the prior written approval of a purchaser of Europe 2001 HOLDRS. Members of the selling group and their affiliates have from time to time provided investment banking and other financial services to some of the issuers of the underlying securities and expect in the future to provide these services, for which they have received and will receive customary fees and commissions. They also may have served as counterparties in other transactions with some of the issuers of the underlying securities. Merrill Lynch, Pierce, Fenner & Smith Incorporated may use this prospectus, as updated from time to time, in connection with offers and sales related to market-making transactions in the Europe 2001 HOLDRS. Merrill Lynch, Pierce, Fenner & Smith Incorporated may act as principal or agent in these transactions. Market-making sales will be made at prices related to prevailing market prices at the time of sale. Merrill Lynch, Pierce, Fenner & Smith Incorporated has agreed to indemnify the trustee against some civil liabilities related to acts performed or not performed by the trustee in accordance with the depositary trust agreement or periodic reports filed or not filed with the SEC with respect to the Europe 2001 HOLDRS. Should a court determine not to enforce the indemnification provision, Merrill Lynch, Pierce, Fenner & Smith Incorporated also has agreed to contribute to payments the trustee may be required to make with respect to these liabilities. LEGAL MATTERS Legal matters, including the validity of the Europe 2001 HOLDRS, will be passed upon for Merrill Lynch, Pierce, Fenner & Smith Incorporated, the initial depositor and the underwriters, by Shearman & Sterling, New York, New York. Shearman & Sterling, as special U.S. tax counsel to the trust, also will render an opinion regarding the material federal income tax consequences relating to the Europe 2001 HOLDRS. WHERE YOU CAN FIND MORE INFORMATION Merrill Lynch, Pierce, Fenner & Smith Incorporated has filed a registration statement on Form S-1 with the SEC covering the Europe 2001 HOLDRS. While this prospectus is a part of the registration statement, it does not contain all the exhibits filed as part of the registration statement. You should consider reviewing the full text of those exhibits. The registration statement is available over the Internet at the SEC's Web site at http://www.sec.gov. You also may read and copy the registration statement at the SEC's public reference rooms in Washington, D.C., New York, New York and Chicago, Illinois. Please call the SEC at 1-800-SEC-0330 for more information on the public reference rooms and their copy charges. Merrill Lynch, Pierce, Fenner & Smith Incorporated will not file any reports pursuant to the Exchange Act. The trust will file modified reports pursuant to the Exchange Act. Since the securities of the issuers of the underlying securities are registered under the Exchange Act, the issuers of the underlying securities are required to file periodically financial and other information specified by the SEC. For more information about the issuers of the underlying securities, information provided to or 26 filed with the SEC by the issuers of the underlying securities with respect to their registered securities can be inspected at the SEC's public reference facilities or accessed through the SEC's Web site referenced above. However, some of the issuers of the underlying securities may be considered foreign issuers. The requirements for filing periodic financial and other information for foreign issuers differ from that of domestic issuers. In particular, foreign issuers are not required to file quarterly reports with the SEC and are not required to file periodic financial and other information on EDGAR. Therefore, this information may not be accessible through the SEC's Web site. Information regarding the issuers of the underlying securities may also be obtained from other sources including, but not limited to, press releases, newspaper articles and other publicly disseminated information. The trust and the selling group and their affiliates are not affiliated with the issuers of the underlying securities, and the issuers of the underlying securities have no obligations with respect to Europe 2001 HOLDRS. This prospectus relates only to Europe 2001 HOLDRS and does not relate to the other securities of the issuers of the underlying securities. The information in this prospectus regarding the issuers of the underlying securities has been derived from the publicly available documents described in the preceding paragraph. We have not participated in the preparation of these documents or made any due diligence inquiries with respect to the issuers of the underlying securities in connection with Europe 2001 HOLDRS. We make no representation that these publicly available documents or any other publicly available information regarding the issuers of the underlying securities are accurate or complete. Furthermore, we cannot assure you that all events occurring prior to the date of this prospectus, including events that would affect the accuracy or completeness of the publicly available documents described in the preceding paragraph, that would affect the trading price of the securities of the issuers of the underlying securities, and therefore the offering and trading prices of the Europe 2001 HOLDRS have been publicly disclosed. 27 ANNEX A This annex forms an integral part of the prospectus. The following tables provide a brief description of the business of each of the issuers of the underlying securities and set forth the split-adjusted closing market prices, as reported on the applicable primary U.S. trading market, of each of the underlying securities in each month during 1995, 1996, 1997, 1998, 1999 and 2000. A table outlining the primary U.S. stock market on which the securities of the issuers are listed can be found on page 10. The foreign stock market or markets on which the equity securities of the foreign issuers included in the Europe 2001 HOLDRS, if any, are listed are described below. An asterisk (*) denotes that no shares of the issuer were trading on a U.S. stock market during that month. The historical prices of the underlying securities should not be taken as an indication of future performance. AEGON N.V. (AEG) AEGON N.V. is an international insurance and financial services company. AEGON provides life insurance, pension and related savings and investment products. AEGON is also involved in accident and health insurance, property and casualty insurance and it also has some banking activities. AEGON primarily operates in the United States, the United Kingdom, The Netherlands, Hungary and Spain. AEGON's products are offered through independent intermediaries and financial advisers, financial institutions, brokers, direct marketing and business partners. New York registered shares of AEGON included in the Europe 2001 HOLDRS are traded through the New York Stock Exchange. Shares of AEGON also trade on the Amsterdam, Frankfurt, London, Tokyo and Zurich stock exchanges.
Closing Closing Closing Closing Closing Closing 1995 Price 1996 Price 1997 Price 1998 Price 1999 Price 2000 Price - --------- ------- --------- ------- --------- ------- --------- ------- --------- ------- --------- ------- January 6.44 January 10.38 January 15.47 January 23.69 January 55.34 January 36.38 February 6.88 February 10.84 February 16.72 February 28.14 February 52.31 February 34.81 March 7.15 March 11.84 March 17.34 March 30.33 March 44.94 March 40.25 April 7.76 April 12.03 April 18.13 April 33.22 April 47.56 April 36.19 May 8.10 May 12.00 May 18.47 May 39.66 May 40.56 May 36.13 June 8.72 June 11.53 June 17.52 June 43.25 June 36.97 June 35.63 July 9.13 July 11.47 July 18.97 July 45.88 July 38.06 July 38.50 August 8.44 August 12.25 August 18.56 August 42.75 August 43.40 August 39.25 September 9.06 September 12.44 September 19.92 September 39.00 September 43.25 September 37.13 October 9.53 October 12.88 October 19.88 October 43.69 October 45.97 October 40.38 November 10.25 November 14.06 November 21.25 November 53.00 November 45.06 November 40.63 December 11.00 December 15.81 December 22.41 December 61.13 December 47.75 December 41.44
The closing price on January 17, 2001 was 38.31. A-1 ALCATEL (ALA) Alcatel provides telecommunications equipment and systems. Alcatel's interaction management products are designed to extend the capabilities of a company's Internet, computer, telecommunications and database systems. American depositary receipts evidencing American depositary shares of Alcatel are included in the Europe 2001 HOLDRS and are traded on the New York Stock Exchange. Shares of Alcatel also trade on the Paris, Amsterdam, Antwerp, Basel, Brussels, Frankfurt, Geneva, Stockholm, Tokyo and Zurich stock exchanges, as well as through the European Association of Securities Dealers Automated Quotation System.
Closing Closing Closing Closing Closing Closing 1995 Price 1996 Price 1997 Price 1998 Price 1999 Price 2000 Price - --------- ------- --------- ------- --------- ------- --------- ------- --------- ------- --------- ------- January 17.38 January 18.38 January 20.63 January 26.06 January 23.00 January 40.06 February 16.25 February 17.88 February 20.50 February 26.19 February 21.69 February 47.25 March 18.13 March 18.50 March 23.75 March 38.00 March 22.81 March 43.12 April 18.50 April 19.00 April 22.25 April 36.25 April 24.31 April 45.13 May 18.25 May 18.38 May 22.75 May 43.25 May 23.69 May 54.56 June 18.13 June 17.75 June 25.25 June 40.69 June 28.38 June 66.50 July 21.25 July 16.25 July 27.00 July 39.38 July 30.88 July 73.13 August 20.00 August 15.50 August 24.63 August 30.00 August 30.94 August 82.75 September 16.75 September 16.88 September 26.56 September 17.00 September 27.75 September 62.88 October 16.88 October 17.00 October 24.31 October 22.00 October 30.69 October 62.38 November 16.75 November 18.50 November 24.75 November 25.88 November 38.00 November 50.50 December 17.50 December 16.00 December 25.31 December 24.44 December 45.00 December 55.94
The closing price on January 17, 2001 was 63.81. AMDOCS LIMITED (DOX) Amdocs Limited designs, develops, markets and supports information system software products and related services for the communications and Internet industries. Amdocs products are primarily related to customer care, billing and order management systems. Amdocs products support a range of communications services including wireline, wireless, cable television, broadband, electronic commerce and Internet services. Amdocs also offers a range of directory sales and publishing systems to publishers of both traditional yellow and white page directories and electronic Internet directories. Ordinary shares of Amdocs, included in the Europe 2001 HOLDRS, are traded through the New York Stock Exchange.
Closing Closing Closing Closing Closing Closing 1995 Price 1996 Price 1997 Price 1998 Price 1999 Price 2000 Price - --------- ------- --------- ------- --------- ------- --------- ------- --------- ------- --------- ------- January * January * January * January * January 21.75 January 53.19 February * February * February * February * February 24.38 February 74.19 March * March * March * March * March 21.63 March 74.00 April * April * April * April * April 26.88 April 67.69 May * May * May * May * May 22.94 May 61.94 June * June * June * June 15.13 June 22.75 June 76.75 July * July * July * July 13.69 July 26.63 July 67.19 August * August * August * August 9.00 August 26.25 August 71.44 September * September * September * September 11.31 September 21.00 September 62.38 October * October * October * October 13.00 October 27.88 October 64.81 November * November * November * November 15.38 November 35.19 November 54.13 December * December * December * December 17.13 December 34.50 December 66.25
The closing price on January 17, 2001 was 73.94. A-2 ARM HOLDINGS P.L.C. (ARMHY) ARM Holdings p.l.c. designs microprocessors and related technology and software and sells development systems. ARM licenses and sells its technology and products to electronics companies. Its microprocessors are used in a variety of electronics products, including video games, automotive control systems and digital cellular phones. American depositary receipts evidencing American depositary shares of ARM are included in the Europe 2001 HOLDRS and are traded through the Nasdaq NMS. Shares of ARM also trade on the London International Stock Exchange.
Closing Closing Closing Closing Closing Closing 1995 Price 1996 Price 1997 Price 1998 Price 1999 Price 2000 Price - --------- ------- --------- ------- --------- ------- --------- ------- --------- ------- --------- ------- January * January * January * January * January 4.00 January 37.79 February * February * February * February * February 5.78 February 46.73 March * March * March * March * March 6.63 March 35.55 April * April * April * April 2.02 April 6.50 April 31.75 May * May * May * May 1.78 May 5.84 May 25.88 June * June * June * June 3.06 June 6.98 June 32.88 July * July * July * July 3.09 July 9.48 July 34.31 August * August * August * August 2.55 August 8.43 August 40.88 September * September * September * September 2.25 September 9.40 September 32.94 October * October * October * October 2.35 October 16.95 October 30.00 November * November * November * November 2.70 November 29.60 November 18.31 December * December * December * December 3.01 December 38.30 December 22.56
The closing price on January 17, 2001 was 23.69. ASM INTERNATIONAL N.V. (ASMI) ASM International N.V. is engaged in the research, development, manufacture, marketing and servicing of equipment and materials used to produce semiconductor devices, including solutions for wafer processing, assembly and packaging. ASM's production equipment and solutions are used by both the front- end and back-end segments of the semiconductor market. Front-end equipment performs various fabrication processes to create the silicon wafer. Back-end equipment separates these processed wafers into numerous individual pieces and assembles, packages and tests the pieces to create semiconductor devices. New York registered shares of ASM included in the Europe 2001 HOLDRS are traded through the Nasdaq NMS. Shares of ASM also trade on the Amsterdam Stock Exchange.
Closing Closing Closing Closing Closing Closing 1995 Price 1996 Price 1997 Price 1998 Price 1999 Price 2000 Price - --------- ------- --------- ------- --------- ------- --------- ------- --------- ------- --------- ------- January 1.50 January 12.08 January 15.31 January 10.16 January 5.69 January 25.25 February 1.67 February 12.33 February 13.63 February 12.19 February 5.00 February 32.63 March 3.50 March 9.25 March 11.50 March 11.13 March 3.63 March 29.00 April 3.71 April 13.75 April 13.13 April 11.06 April 4.69 April 34.50 May 6.21 May 13.50 May 13.00 May 9.75 May 5.19 May 25.88 June 8.58 June 10.88 June 10.94 June 8.00 June 7.44 June 26.50 July 10.67 July 6.13 July 13.75 July 8.38 July 8.00 July 26.00 August 16.25 August 7.00 August 13.13 August 5.81 August 7.38 August 25.13 September 16.83 September 9.63 September 20.13 September 4.50 September 8.38 September 17.50 October 15.63 October 8.50 October 12.06 October 4.00 October 8.41 October 16.06 November 16.83 November 10.25 November 10.56 November 5.50 November 16.25 November 11.38 December 16.42 December 9.63 December 8.69 December 5.25 December 23.00 December 9.31
The closing price on January 17, 2001 was 16.44. A-3 ASM LITHOGRAPHY HOLDING N.V. (ASML) ASM Lithography Holding N.V. is a developer and supplier of microlithography systems. Microlithography is used in semiconductor manufacturing to transfer the pattern of circuitry from a photomask (a quartz plate containing the "master copy" of microscopic integrated circuitry) to a wafer (a thin slice of silicon or other semiconductor material on which chips are made). New York registered shares of ASM, included in the Europe 2001 HOLDRS, are traded through the Nasdaq NMS. Shares of ASM also trade through the Nasdaq NMS and on the Amsterdam Stock Exchange.
Closing Closing Closing Closing Closing Closing 1995 Price 1996 Price 1997 Price 1998 Price 1999 Price 2000 Price - --------- ------- --------- ------- --------- ------- --------- ------- --------- ------- --------- ------- January * January 3.73 January 6.09 January 11.58 January 15.50 January 40.98 February * February 4.04 February 5.54 February 15.56 February 13.21 February 42.71 March 2.34 March 3.36 March 6.25 March 15.41 March 15.00 March 37.25 April 2.28 April 3.69 April 6.63 April 15.27 April 13.00 April 40.00 May 2.69 May 3.94 May 8.71 May 12.77 May 14.71 May 35.56 June 2.99 June 3.42 June 9.75 June 9.69 June 19.79 June 44.13 July 4.67 July 3.15 July 13.50 July 9.56 July 20.25 July 39.75 August 3.93 August 3.21 August 14.17 August 5.88 August 21.04 August 38.13 September 3.66 September 3.17 September 16.46 September 5.23 September 22.35 September 32.31 October 4.14 October 3.00 October 12.21 October 8.50 October 24.21 October 27.81 November 3.51 November 3.68 November 10.42 November 9.44 November 31.21 November 20.44 December 2.77 December 4.15 December 11.25 December 10.17 December 37.92 December 22.56
The closing price on January 17, 2001 was 28.13. ASTRAZENECA P.L.C. (AZN) AstraZeneca p.l.c. is a biosciences company involved in the research, development, manufacture and marketing of pharmaceutical, agricultural and specialty chemical products and the supply of healthcare services. AstraZeneca's research and products focus on several areas, including cancer, cardiovascular, the central nervous system, gastrointestinal, infection, pain control, anesthesia and respiratory. American depositary receipts evidencing American depositary shares of AstraZeneca are included in the Europe 2001 HOLDRS and are traded on the New York Stock Exchange. Shares of AstraZeneca also trade on the London International Stock Exchange.
Closing Closing Closing Closing Closing Closing 1995 Price 1996 Price 1997 Price 1998 Price 1999 Price 2000 Price - --------- ------- --------- ------- --------- ------- --------- ------- --------- ------- --------- ------- January 13.96 January 19.46 January 28.75 January 39.69 January 47.00 January 38.00 February 13.79 February 19.17 February 29.33 February 44.31 February 41.06 February 33.13 March 14.13 March 21.25 March 28.33 March 43.83 March 47.06 March 40.50 April 14.54 April 20.92 April 30.13 April 43.88 April 39.25 April 42.13 May 15.00 May 21.38 May 30.54 May 41.38 May 39.38 May 42.06 June 17.08 June 22.42 June 33.08 June 43.88 June 39.19 June 46.50 July 17.79 July 21.58 July 33.29 July 38.81 July 36.75 July 42.75 August 17.25 August 24.04 August 31.83 August 36.50 August 39.38 August 45.56 September 18.17 September 24.75 September 32.54 September 35.00 September 42.25 September 52.56 October 18.79 October 27.17 October 31.79 October 39.13 October 45.75 October 47.69 November 20.38 November 27.67 November 32.06 November 42.00 November 44.50 November 51.44 December 19.46 December 28.00 December 36.00 December 44.88 December 41.75 December 51.50
The closing price on January 17, 2001 was 47.00. A-4 AUTONOMY CORPORATION P.L.C. (AUTN) Autonomy Corporation p.l.c. develops and markets software for automating the management, processing and delivery of information to and from sources across the Internet and other digital mediums, such as mobile phones. Autonomy's software products allow for the automation of a range of tasks, such as categorizing information by subject matter, inserting hypertext links to related material and profiling users of the Internet, which enables the automatic delivery of large volumes of personalized information. American depositary receipts evidencing American depositary shares of Autonomy are included in the Europe 2001 HOLDRS and are traded through Nasdaq NMS. Shares of Autonomy also trade through the European Association of Securities Dealers Automated Quotation System.
Closing Closing Closing Closing Closing Closing 1995 Price 1996 Price 1997 Price 1998 Price 1999 Price 2000 Price - --------- ------- --------- ------- --------- ------- --------- ------- --------- ------- --------- ------- January * January * January * January * January * January * February * February * February * February * February * February * March * March * March * March * March * March * April * April * April * April * April * April * May * May * May * May * May * May 35.50 June * June * June * June * June * June 41.00 July * July * July * July * July * July 48.00 August * August * August * August * August * August 63.00 September * September * September * September * September * September 55.00 October * October * October * October * October * October 50.00 November * November * November * November * November * November 32.94 December * December * December * December * December * December 26.88
The closing price on January 17, 2001 was 29.56. AVENTIS S.A. (AVE) Aventis S.A. develops, manufactures and markets products and services related to the health and nutrition industry. Aventis is primarily involved in the fields of prescription drugs, vaccines, therapeutic proteins, diagnostics, crop sciences and animal health and nutrition. American depositary receipts evidencing American depositary shares of Aventis are included in the Europe 2001 HOLDRS and are traded on the New York Stock Exchange. Shares of Aventis also trade on the Paris Stock Exchange.
Closing Closing Closing Closing Closing Closing 1995 Price 1996 Price 1997 Price 1998 Price 1999 Price 2000 Price - --------- ------- --------- ------- --------- ------- --------- ------- --------- ------- --------- ------- January 24.25 January 24.00 January 33.38 January 46.13 January 51.69 January 54.00 February 23.88 February 25.25 February 35.00 February 46.19 February 46.00 February 52.00 March 23.50 March 25.88 March 33.25 March 50.38 March 44.00 March 54.00 April 24.13 April 24.13 April 33.88 April 49.50 April 47.13 April 56.25 May 24.13 May 24.63 May 32.25 May 55.00 May 46.88 May 63.94 June 22.00 June 26.50 June 41.63 June 56.19 June 46.31 June 72.56 July 23.00 July 26.13 July 43.13 July 54.00 July 48.38 July 75.50 August 20.75 August 26.38 August 37.88 August 46.00 August 48.56 August 74.75 September 20.25 September 28.00 September 40.44 September 41.75 September 51.25 September 75.31 October 22.00 October 29.75 October 42.25 October 46.69 October 55.50 October 72.06 November 21.75 November 32.38 November 44.88 November 50.00 November 61.56 November 78.44 December 21.38 December 33.88 December 44.19 December 50.25 December 56.88 December 84.25
The closing price on January 17, 2001 was 76.38. A-5 AXA (AXA) AXA is a financial services company that focuses on insurance and asset management. AXA provides life, property and casualty insurance and reinsurance. AXA's primary operations are in western Europe, North America and the Asia- Pacific region. AXA is engaged in investment banking in the United States. American depositary receipts evidencing American depositary shares of AXA are included in the Europe 2001 HOLDRS and are traded on the New York Stock Exchange. Shares of AXA also trade on the Paris Stock Exchange and the London International Stock Exchange.
Closing Closing Closing Closing Closing Closing 1995 Price 1996 Price 1997 Price 1998 Price 1999 Price 2000 Price - --------- ------- --------- ------- --------- ------- --------- ------- --------- ------- --------- ------- January * January * January 33.50 January 41.19 January 73.00 January 64.81 February * February * February 33.63 February 48.38 February 66.50 February 62.94 March * March * March 32.75 March 51.75 March 66.25 March 71.69 April * April * April 31.00 April 58.13 April 63.94 April 76.75 May * May * May 31.63 May 57.38 May 58.50 May 73.25 June * June 27.13 June 31.63 June 56.81 June 62.31 June 79.56 July * July 27.13 July 32.88 July 67.44 July 59.06 July 75.75 August * August 28.38 August 31.94 August 54.31 August 62.63 August 70.31 September * September 29.75 September 33.94 September 44.50 September 63.81 September 64.69 October * October 31.13 October 34.31 October 56.88 October 69.75 October 66.44 November * November 30.38 November 35.75 November 64.13 November 66.81 November 70.00 December * December 31.50 December 39.00 December 72.25 December 71.00 December 71.81
The closing price on January 17, 2001 was 68.50. BOOKHAM TECHNOLOGY P.L.C. (BKHM) Bookham Technology p.l.c. provides integrated optical circuits and modules to telecommunications and network systems. Bookham designs, manufactures and markets components based on silicon chips that generate, detect, route and control light signals in fiber-optic telecommunication networks. American depositary receipts evidencing American depositary shares of Bookham are included in the Europe 2001 HOLDRS and are traded through Nasdaq NMS. Shares of Bookham also trade on the London International Stock Exchange.
Closing Closing Closing Closing Closing Closing 1995 Price 1996 Price 1997 Price 1998 Price 1999 Price 2000 Price - --------- ------- --------- ------- --------- ------- --------- ------- --------- ------- --------- ------- January * January * January * January * January * January * February * February * February * February * February * February * March * March * March * March * March * March * April * April * April * April * April * April 52.00 May * May * May * May * May * May 48.69 June * June * June * June * June * June 59.25 July * July * July * July * July * July 62.75 August * August * August * August * August * August 61.75 September * September * September * September * September * September 42.88 October * October * October * October * October * October 33.69 November * November * November * November * November * November 12.44 December * December * December * December * December * December 13.13
The closing price on January 17, 2001 was 18.69. A-6 BP AMOCO P.L.C. (BP) BP Amoco p.l.c. develops and markets oil and petroleum products throughout the world and is involved in exploration, oil field development and the manufacture of petroleum-based chemical products. BP Amoco's main businesses include oil and natural gas exploration, pipeline transportation, gas processing and gas marketing, oil supply and trading, refining and marketing and petrochemical manufacturing and marketing. American depositary receipts evidencing American depositary shares of BP Amoco are included in the Europe 2001 HOLDRS and are traded on the New York Stock Exchange. Shares of BP Amoco also trade on the London International Stock Exchange and on the French, German, Swiss and Japanese Stock Exchanges.
Closing Closing Closing Closing Closing Closing 1995 Price 1996 Price 1997 Price 1998 Price 1999 Price 2000 Price - --------- ------- --------- ------- --------- ------- --------- ------- --------- ------- --------- ------- January 19.41 January 24.41 January 35.41 January 40.16 January 40.56 January 53.75 February 19.13 February 25.09 February 33.09 February 41.34 February 42.50 February 47.06 March 20.94 March 26.56 March 34.31 March 43.03 March 50.50 March 53.25 April 21.53 April 27.31 April 34.41 April 47.25 April 56.59 April 51.00 May 21.34 May 26.34 May 36.22 May 44.22 May 53.59 May 54.56 June 21.41 June 26.72 June 37.44 June 44.13 June 54.25 June 56.56 July 22.69 July 27.47 July 41.22 July 40.13 July 57.94 July 52.31 August 22.53 August 29.44 August 42.31 August 36.56 August 55.92 August 55.25 September 22.47 September 31.25 September 45.41 September 43.59 September 55.41 September 53.00 October 22.06 October 32.16 October 43.88 October 44.25 October 57.75 October 50.94 November 23.91 November 34.63 November 41.50 November 46.06 November 60.94 November 47.44 December 25.53 December 35.34 December 39.84 December 45.38 December 59.31 December 47.88
The closing price on January 17, 2001 was 50.00. BUSINESS OBJECTS S.A. (BOBJ) Business Objects S.A. develops, markets and supports electronic commerce software and services for client-server environments, intranets, extranets and the Internet. Business Objects' software allows users to access, analyze and share data in various business environments. American depositary receipts evidencing American depositary shares of Business Objects are included in the Europe 2001 HOLDRS and are traded through Nasdaq NMS. Shares of Business Objects also trade on the Paris Stock Exchange. Business Objects has announced a 3-for-2 stock split to shareholders of record as of February 22, 2001, which is subject to approval of shareholders on February 6, 2001. The stock will begin trading on a split-adjusted basis on February 22, 2001. The following table does not take into account any adjustment for this stock split.
Closing Closing Closing Closing Closing Closing 1995 Price 1996 Price 1997 Price 1998 Price 1999 Price 2000 Price - --------- ------- --------- ------- --------- ------- --------- ------- --------- ------- --------- ------- January 7.56 January 11.50 January 7.19 January 4.78 January 17.25 January 67.31 February 7.53 February 18.69 February 5.84 February 7.06 February 18.13 February 114.88 March 7.88 March 21.25 March 4.88 March 7.56 March 14.84 March 99.50 April 7.94 April 21.63 April 4.50 April 9.44 April 11.72 April 97.88 May 7.69 May 23.25 May 4.81 May 8.45 May 14.38 May 80.00 June 8.25 June 20.13 June 4.88 June 8.44 June 18.25 June 88.13 July 9.09 July 9.63 July 3.38 July 7.44 July 22.56 July 94.50 August 9.00 August 8.88 August 3.94 August 4.44 August 22.31 August 114.50 September 10.66 September 9.63 September 5.06 September 6.25 September 29.50 September 113.06 October 10.81 October 7.44 October 6.31 October 8.41 October 36.00 October 78.80 November 12.19 November 6.63 November 5.44 November 9.50 November 44.25 November 61.88 December 12.09 December 6.75 December 5.19 December 16.25 December 66.81 December 56.63
The closing price on January 17, 2001 was 62.00. A-7 CABLE & WIRELESS P.L.C. (CWP) Cable & Wireless p.l.c. provides integrated communications and a global carrier of communications traffic, including Internet, data, voice and video communications. Cable & Wireless also offers broadband data, cable television and fixed and mobile voice services. Cable & Wireless primarily operates in North America, Europe and the Asia-Pacific region. American depositary receipts evidencing American depositary shares of Cable & Wireless are included in the Europe 2001 HOLDRS and are traded on the New York Stock Exchange. Shares of Cable & Wireless also trade on The London International Stock Exchange and on the Frankfurt Stock Exchange.
Closing Closing Closing Closing Closing Closing 1995 Price 1996 Price 1997 Price 1998 Price 1999 Price 2000 Price - --------- ------- --------- ------- --------- ------- --------- ------- --------- ------- --------- ------- January 17.50 January 20.25 January 22.50 January 29.06 January 43.25 January 63.25 February 18.00 February 20.25 February 24.25 February 33.25 February 40.56 February 64.63 March 18.88 March 24.25 March 23.75 March 37.75 March 36.94 March 56.00 April 19.38 April 23.38 April 23.13 April 35.13 April 42.13 April 49.38 May 20.50 May 20.63 May 25.13 May 34.69 May 38.25 May 49.63 June 20.50 June 19.75 June 27.94 June 36.88 June 39.63 June 50.06 July 20.13 July 18.88 July 30.06 July 38.88 July 36.00 July 52.56 August 19.63 August 19.75 August 26.63 August 28.38 August 34.63 August 55.25 September 19.75 September 20.88 September 25.88 September 27.13 September 33.13 September 42.56 October 19.38 October 23.75 October 24.50 October 33.63 October 34.88 October 43.06 November 20.63 November 24.13 November 26.94 November 37.75 November 39.75 November 37.00 December 21.13 December 24.63 December 27.19 December 36.75 December 52.94 December 39.88
The closing price on January 17, 2001 was 43.25. DAIMLERCHRYSLER AG (DCX) DaimlerChrysler AG develops, manufactures and markets passenger cars, commercial vehicles, rail systems, automotive electronics and diesel engines. DaimlerChrysler also offers financial and information technology services. Global shares of DaimlerChrysler, included in the Europe 2001 HOLDRS, trade on the New York Stock Exchange. Shares of DaimlerChrysler also trade on the Frankfurt, Berlin, Bremen, Dusseldorf, Hamburg, Hanover, Munich, Stuttgart, Chicago, Pacific, Philadelphia, Montreal, Paris, Tokyo, Toronto and Swiss stock exchanges.
Closing Closing Closing Closing Closing Closing 1995 Price 1996 Price 1997 Price 1998 Price 1999 Price 2000 Price - --------- ------- --------- ------- --------- ------- --------- ------- --------- ------- --------- ------- January 45.65 January 55.10 January 71.89 January 69.59 January 103.63 January 65.81 February 48.26 February 54.97 February 72.14 February 80.72 February 93.94 February 67.75 March 44.53 March 53.85 March 76.86 March 92.41 March 85.81 March 65.44 April 45.89 April 54.35 April 74.00 April 100.50 April 98.19 April 57.56 May 48.38 May 54.23 May 78.85 May 98.38 May 87.44 May 53.94 June 45.89 June 53.61 June 81.09 June 96.83 June 89.00 June 52.06 July 48.38 July 53.73 July 83.27 July 100.99 July 72.13 July 52.69 August 49.25 August 54.23 August 74.38 August 84.58 August 75.19 August 52.06 September 49.38 September 54.97 September 81.71 September 81.53 September 69.44 September 44.39 October 48.01 October 58.95 October 68.10 October 78.42 October 77.75 October 45.90 November 49.25 November 65.30 November 70.27 November 91.50 November 68.13 November 38.44 December 50.62 December 68.16 December 71.89 December 96.06 December 78.00 December 41.81
The closing price on January 17, 2001 was 43.75. A-8 DEUTSCHE TELEKOM AG (DT) Deutsche Telekom AG is a full-service telecommunications company that provides public fixed-line voice telephony, mobile communications and cable television and radio programming primarily in Germany and in parts of Europe. Deutsche Telekom also offers some of these services outside of Europe. Deutsche Telekom operates T-Online, an Internet service provider in Europe, and also provides leased lines, text and data services, corporate network services and telephone directory assistance. American depositary receipts evidencing American depositary shares of Deutsche Telekom are included in the Europe 2001 HOLDRS and are traded on the New York Stock Exchange. Shares of Deutsche Telekom also trade on the Frankfurt, Berlin, Bremen, Dusseldorf, Hamburg, Hanover, Munich, Stuttgart, and Tokyo stock exchanges.
Closing Closing Closing Closing Closing Closing 1995 Price 1996 Price 1997 Price 1998 Price 1999 Price 2000 Price - --------- ------- --------- ------- --------- ------- --------- ------- --------- ------- --------- ------- January * January * January 18.63 January 17.50 January 45.25 January 69.63 February * February * February 19.38 February 20.00 February 45.63 February 84.31 March * March * March 21.88 March 22.06 March 40.44 March 80.25 April * April * April 21.50 April 26.31 April 38.75 April 67.50 May * May * May 22.75 May 27.25 May 39.56 May 61.75 June * June * June 24.13 June 27.50 June 42.25 June 56.75 July * July * July 23.38 July 29.56 July 40.44 July 43.50 August * August * August 20.06 August 24.00 August 44.38 August 38.94 September * September * September 19.06 September 29.44 September 41.81 September 34.25 October * October * October 19.44 October 27.25 October 46.00 October 38.19 November * November 21.38 November 20.44 November 28.31 November 56.88 November 32.31 December * December 20.38 December 18.63 December 32.75 December 71.00 December 29.25
The closing price on January 17, 2001 was 35.19. DIAGEO P.L.C. (DEO) Diageo p.l.c. develops, markets and distributes a wide range of consumer goods, including spirits, wine and beer, food products through a variety of brands, including Smirnoff, Guinness, Pillsbury, Haagen-Dazs and Burger King, and quick service restaurants. On December 6, 2000, Diageo and Pernod Ricard S.A. announced that they entered into an agreement to acquire the wine and spirits business of The Seagram Company Ltd., an indirect subsidiary of Vivendi Universal. This transaction is subject to regulatory approval and customary closing conditions. American depositary receipts evidencing American depositary shares of Diageo are included in the Europe 2001 HOLDRS and are traded on the New York Stock Exchange. Shares of Diageo also trade on the London International Stock Exchange.
Closing Closing Closing Closing Closing Closing 1995 Price 1996 Price 1997 Price 1998 Price 1999 Price 2000 Price - --------- ------- --------- ------- --------- ------- --------- ------- --------- ------- --------- ------- January 23.50 January 26.88 January 30.13 January 36.44 January 45.06 January 30.19 February 24.50 February 27.00 February 30.00 February 41.56 February 45.25 February 30.81 March 25.75 March 26.25 March 31.88 March 48.56 March 45.75 March 30.13 April 25.88 April 26.63 April 34.25 April 48.06 April 46.25 April 34.00 May 25.25 May 26.88 May 37.38 May 45.25 May 43.00 May 34.56 June 25.00 June 26.75 June 39.19 June 48.00 June 43.00 June 35.56 July 24.25 July 27.25 July 40.00 July 48.38 July 41.00 July 34.81 August 25.75 August 29.00 August 36.38 August 37.81 August 41.44 August 34.44 September 28.00 September 30.50 September 39.00 September 36.25 September 41.44 September 35.31 October 27.50 October 30.63 October 37.38 October 43.94 October 40.63 October 37.63 November 27.13 November 31.88 November 37.25 November 45.69 November 36.81 November 41.75 December 28.75 December 31.63 December 37.88 December 46.25 December 32.00 December 44.38
The closing price on January 17, 2001 was 39.94. A-9 ELAN CORPORATION, P.L.C. (ELN) Elan Corporation, p.l.c. is a pharmaceutical company focused on the discovery, development and marketing of therapeutic products and services in neurology, acute care and pain management and on the development and commercialization of products using its drug delivery technologies. Elan's drug delivery technologies are designed to improve and control the absorption and utilization of active pharmaceutical compounds. American depositary receipts evidencing American depositary shares of Elan are included in the Europe 2001 HOLDRS and are traded on the New York Stock Exchange. Shares of Elan also trade on the London International Stock Exchange and Dublin Stock Exchange.
Closing Closing Closing Closing Closing Closing 1995 Price 1996 Price 1997 Price 1998 Price 1999 Price 2000 Price - --------- ------- --------- ------- --------- ------- --------- ------- --------- ------- --------- ------- January 8.81 January 14.50 January 19.25 January 25.97 January 33.75 January 30.06 February 8.81 February 14.53 February 17.31 February 31.03 February 38.34 February 40.75 March 9.31 March 16.06 March 17.06 March 32.31 March 34.88 March 47.50 April 8.84 April 16.47 April 17.00 April 31.06 April 25.81 April 43.50 May 8.72 May 15.69 May 20.38 May 30.59 May 27.03 May 39.81 June 10.22 June 14.31 June 22.63 June 32.16 June 27.75 June 48.44 July 10.56 July 14.69 July 23.75 July 36.00 July 29.06 July 53.44 August 9.81 August 15.69 August 22.75 August 29.47 August 32.06 August 58.31 September 10.25 September 14.94 September 25.03 September 36.03 September 33.56 September 54.75 October 10.03 October 13.88 October 24.94 October 35.03 October 25.75 October 51.94 November 12.03 November 14.88 November 26.38 November 34.06 November 27.31 November 53.94 December 12.16 December 16.63 December 25.59 December 34.97 December 29.50 December 46.81
The closing price on January 17, 2001 was 47.31. LM ERICSSON TELEPHONE COMPANY (ERICY) LM Ericsson Telephone Company is an international manufacturer of advanced systems and products for wireline and wireless communications. Ericsson's range of telecommunication and data communication products includes systems and services for handling voice, data, images and text in public and private wireline and wireless communications networks, power equipment and defense system electronics and telecommunications. American depositary receipts evidencing American depositary shares of Ericsson are included in the Europe 2001 HOLDRS and are traded through Nasdaq NMS. Shares of Ericsson also trade on the Stockholm Stock Exchange.
Closing Closing Closing Closing Closing Closing 1995 Price 1996 Price 1997 Price 1998 Price 1999 Price 2000 Price - --------- ------- --------- ------- --------- ------- --------- ------- --------- ------- --------- ------- January 1.68 January 2.58 January 4.21 January 4.83 January 6.97 January 18.64 February 1.78 February 2.75 February 3.94 February 5.66 February 6.50 February 24.00 March 1.93 March 2.67 March 4.23 March 5.95 March 5.95 March 23.45 April 2.10 April 2.55 April 4.20 April 6.43 April 6.75 April 22.11 May 2.29 May 2.88 May 4.45 May 6.97 May 6.73 May 20.50 June 2.50 June 2.69 June 4.92 June 7.16 June 8.23 June 20.00 July 2.33 July 2.54 July 5.66 July 6.92 July 8.02 July 19.63 August 2.67 August 2.88 August 5.21 August 5.36 August 8.14 August 20.50 September 3.06 September 3.17 September 5.99 September 4.59 September 7.81 September 14.81 October 2.67 October 3.45 October 5.53 October 5.66 October 10.69 October 13.88 November 2.97 November 3.86 November 5.05 November 6.91 November 12.05 November 11.38 December 2.44 December 3.77 December 4.66 December 5.98 December 16.42 December 11.19
The closing price on January 17, 2001 was 12.06. A-10 GLAXOSMITHKLINE P.L.C. (GSK) GlaxoSmithKline p.l.c. is an international pharmaceutical company that develops, manufactures and markets vaccines, prescription and non-prescription medicines, oncological products and health-related consumer products. GlaxoSmithKline produces products in four major therapeutic areas--anti- infectives, central nervous system, respiratory and gastrointestinal/metabolic. On December 27, 2000, the merger between Glaxo Wellcome p.l.c. and SmithKline Beechman p.l.c. was completed, forming the combined company GlaxoSmithKline p.l.c. American depositary receipts evidencing American depositary shares of GlaxoSmithKline are included in the Europe 2001 HOLDRS and are traded on the New York Stock Exchange. Shares of GlaxoSmithKline also trade on the London International Stock Exchange.
Closing Closing Closing Closing Closing Closing 1995 Price 1996 Price 1997 Price 1998 Price 1999 Price 2000 Price - --------- ------- --------- ------- --------- ------- --------- ------- --------- ------- --------- ------- January 19.63 January 29.13 January 31.88 January 53.81 January 67.88 January 52.75 February 20.00 February 27.38 February 33.88 February 54.31 February 64.06 February 48.75 March 22.88 March 25.00 March 35.38 March 54.13 March 66.94 March 57.31 April 23.63 April 24.25 April 39.38 April 56.56 April 58.00 April 62.81 May 23.13 May 26.13 May 40.25 May 53.94 May 56.25 May 56.31 June 24.38 June 26.75 June 41.81 June 59.81 June 56.63 June 57.81 July 23.88 July 27.75 July 42.50 July 60.81 July 52.19 July 57.13 August 23.75 August 28.50 August 39.94 August 55.38 August 52.94 August 57.56 September 24.13 September 31.13 September 44.94 September 57.13 September 52.00 September 60.44 October 27.00 October 31.50 October 42.58 October 62.25 October 59.88 October 58.19 November 26.63 November 32.88 November 45.69 November 63.50 November 59.44 November 57.31 December 28.13 December 31.75 December 47.88 December 69.50 December 55.88 December 56.00
The closing price on January 17, 2001 was 52.00. INFINEON TECHNOLOGIES AG (IFX) Infineon Technologies AG designs, develops, manufactures and markets a broad range of semiconductors and complete system solutions for the automotive and industrial electronics industries. Infineon produces chips for wireless communications, security and chip card applications and communications and multimedia chips and memory components. American depositary receipts evidencing American depositary shares of Infineon are included in the Europe 2001 HOLDRS and are traded on the New York Stock Exchange. Shares of Infineon also trade on the Frankfurt Stock Exchange.
Closing Closing Closing Closing Closing Closing 1995 Price 1996 Price 1997 Price 1998 Price 1999 Price 2000 Price - --------- ------- --------- ------- --------- ------- --------- ------- --------- ------- --------- ------- January * January * January * January * January * January * February * February * February * February * February * February * March * March * March * March * March * March 57.50 April * April * April * April * April * April 67.88 May * May * May * May * May * May 62.88 June * June * June * June * June * June 79.25 July * July * July * July * July * July 68.00 August * August * August * August * August * August 65.94 September * September * September * September * September * September 47.50 October * October * October * October * October * October 42.88 November * November * November * November * November * November 38.38 December * December * December * December * December * December 36.00
The closing price on January 17, 2001 was 42.63. A-11 ING GROEP N.V. (ING) ING Groep N.V. provides a range of insurance services, retail, commercial and investment banking services, asset management services and other related products and services. American depositary receipts evidencing American depositary shares of ING are included in the Europe 2001 HOLDRS and are traded on the New York Stock Exchange. Shares of ING also trade on the Amsterdam, Brussels, Frankfurt, Paris and Swiss stock exchanges.
Closing Closing Closing Closing Closing Closing 1995 Price 1996 Price 1997 Price 1998 Price 1999 Price 2000 Price - --------- ------- --------- ------- --------- ------- --------- ------- --------- ------- --------- ------- January 18.76 January 26.04 January 37.70 January 45.63 January 59.19 January 51.06 February 19.50 February 26.57 February 38.71 February 53.19 February 55.94 February 51.56 March 19.90 March 29.05 March 39.40 March 56.94 March 54.94 March 55.00 April 21.12 April 30.84 April 39.27 April 67.25 April 61.38 April 54.94 May 21.66 May 32.86 May 44.25 May 68.25 May 53.63 May 60.31 June 22.11 June 29.82 June 46.38 June 65.38 June 55.00 June 67.50 July 23.10 July 30.67 July 49.19 July 74.88 July 50.88 July 67.25 August 22.23 August 31.21 August 44.06 August 54.50 August 54.88 August 67.44 September 23.33 September 31.21 September 45.94 September 43.88 September 54.75 September 65.88 October 23.82 October 31.19 October 41.63 October 49.38 October 59.13 October 69.19 November 26.21 November 35.02 November 40.75 November 56.38 November 56.50 November 71.75 December 26.75 December 35.96 December 42.31 December 62.19 December 61.00 December 80.13
The closing price on January 17, 2001 was 77.56. IONA TECHNOLOGIES P.L.C. (IONA) IONA Technologies p.l.c. provides software products that create enterprise portals or singular points of access on the Web. IONA's products enable companies to develop, integrate and manage network based applications. IONA also provides consulting, training and technical support. American depositary receipts evidencing American depositary shares of IONA are included in the Europe 2001 HOLDRS and are traded through the Nasdaq NMS. Shares of IONA also trade on the Irish Stock Exchange.
Closing Closing Closing Closing Closing Closing 1995 Price 1996 Price 1997 Price 1998 Price 1999 Price 2000 Price - --------- ------- --------- ------- --------- ------- --------- ------- --------- ------- --------- ------- January * January * January * January 18.50 January 44.75 January 47.50 February * February * February 20.13 February 29.50 February 38.00 February 84.75 March * March * March 18.00 March 31.63 March 30.38 March 74.00 April * April * April 14.50 April 31.13 April 17.00 April 56.81 May * May * May 17.25 May 30.75 May 16.44 May 43.69 June * June * June 19.75 June 35.50 June 15.88 June 63.00 July * July * July 20.06 July 30.13 July 15.63 July 70.25 August * August * August 17.25 August 19.75 August 12.75 August 83.31 September * September * September 13.88 September 18.75 September 12.88 September 69.50 October * October * October 15.81 October 26.50 October 21.38 October 65.75 November * November * November 19.94 November 27.13 November 34.00 November 52.94 December * December * December 20.50 December 38.00 December 54.50 December 67.00
The closing price on January 17, 2001 was 63.75. A-12 JAZZTEL P.L.C. (JAZZ) Jazztel p.l.c. is a telecommunications and Internet service provider in Spain and Portugal that focuses on small and medium-sized businesses. Jazztel is currently constructing a fiber-optic telecommunications network that it believes will be the first competitive local exchange carrier in Spain and Portugal. American depositary receipts evidencing American depositary shares of Jazztel are included in the Europe 2001 HOLDRS and are traded through Nasdaq NMS. Shares of Jazztel also trade through the European Association of Securities Dealers Automated Quotation System and on the Madrid Stock Exchange.
Closing Closing Closing Closing Closing Closing 1995 Price 1996 Price 1997 Price 1998 Price 1999 Price 2000 Price - --------- ------- --------- ------- --------- ------- --------- ------- --------- ------- --------- ------- January * January * January * January * January * January 65.38 February * February * February * February * February * February 117.75 March * March * March * March * March * March 80.94 April * April * April * April * April * April 52.00 May * May * May * May * May * May 39.06 June * June * June * June * June * June 26.25 July * July * July * July * July * July 29.50 August * August * August * August * August * August 30.88 September * September * September * September * September * September 22.50 October * October * October * October * October * October 17.69 November * November * November * November * November * November 11.00 December * December * December * December * December 65.13 December 10.75
The closing price on January 17, 2001 was 20.00. KONINKLIJKE PHILIPS ELECTRONICS N.V. (PHG) Koninklijke Philips Electronics N.V. develops, manufactures and markets products and services in the areas of lighting, consumer electronics and communications, domestic appliances and personal care, semiconductors, medical systems, business electronics and information technology. New York registered shares of Philips Electronics, included in the Europe 2001 HOLDRS, trade on the New York Stock Exchange. Shares of Philips also trade on the London International Stock Exchange and on the Amsterdam, Paris, Zurich, Geneva, Basel, Frankfurt, Luxembourg, Brussels, Vienna and Antwerp stock exchanges.
Closing Closing Closing Closing Closing Closing 1995 Price 1996 Price 1997 Price 1998 Price 1999 Price 2000 Price - --------- ------- --------- ------- --------- ------- --------- ------- --------- ------- --------- ------- January 8.82 January 11.24 January 11.21 January 18.66 January 20.40 January 38.08 February 9.21 February 11.59 February 12.61 February 21.82 February 19.51 February 49.35 March 9.56 March 10.19 March 12.43 March 20.57 March 23.09 March 44.15 April 10.79 April 10.05 April 14.99 April 25.25 April 23.85 April 46.00 May 11.24 May 9.84 May 15.69 May 26.65 May 24.13 May 45.55 June 11.98 June 9.14 June 20.14 June 23.78 June 26.00 June 48.97 July 13.80 July 9.28 July 22.92 July 22.88 July 26.06 July 46.33 August 12.61 August 9.49 August 20.07 August 16.79 August 26.50 August 49.31 September 13.66 September 10.05 September 23.53 September 14.95 September 26.03 September 42.50 October 10.82 October 9.88 October 21.96 October 15.48 October 26.79 October 39.94 November 10.96 November 11.38 November 18.77 November 17.74 November 30.80 November 32.81 December 10.05 December 11.21 December 16.95 December 18.96 December 34.79 December 36.25
The closing price on January 17, 2001 was 40.56. A-13 KPNQWEST N.V. (KQIP) KPNQwest N.V. is a facilities-based, European Internet service provider. KPNQwest is currently deploying fiber-optic network connecting 50 cities throughout Europe, and provides a full portfolio of Internet protocol based services. New York registered shares of KPNQwest, included in the Europe 2001 HOLDRS, trade on the Nasdaq NMS. Shares of KPNQwest also trade on Amsterdam Stock Exchange.
Closing Closing Closing Closing Closing Closing 1995 Price 1996 Price 1997 Price 1998 Price 1999 Price 2000 Price - --------- ------- --------- ------- --------- ------- --------- ------- --------- ------- --------- ------- January * January * January * January * January * January 63.63 February * February * February * February * February * February 72.50 March * March * March * March * March * March 54.25 April * April * April * April * April * April 40.25 May * May * May * May * May * May 34.75 June * June * June * June * June * June 39.63 July * July * July * July * July * July 33.50 August * August * August * August * August * August 33.19 September * September * September * September * September * September 29.00 October * October * October * October * October * October 24.63 November * November * November * November * November 38.25 November 18.63 December * December * December * December * December 63.75 December 18.94
The closing price on January 17, 2001 was 26.63. MILLICOM INTERNATIONAL CELLULAR S.A. (MICC) Millicom International Cellular S.A. is involved in the telecommunications sector through investments in cellular telephone service operations, primarily in emerging markets. Millicom also offers broadband communications, fixed and mobile telephony, data network and Internet services. American depositary receipts evidencing New York registered shares of Millicom, included in the Europe 2001 HOLDRS, are traded through Nasdaq NMS. Shares of Millicom also trade on the Luxembourg Stock Exchange.
Closing Closing Closing Closing Closing Closing 1995 Price 1996 Price 1997 Price 1998 Price 1999 Price 2000 Price - --------- ------- --------- ------- --------- ------- --------- ------- --------- ------- --------- ------- January 26.00 January 39.00 January 36.75 January 37.75 January 35.00 January 71.38 February 27.25 February 37.88 February 38.50 February 44.13 February 26.75 February 71.00 March 26.50 March 43.25 March 41.38 March 44.00 March 26.00 March 57.06 April 24.88 April 47.25 April 45.50 April 39.13 April 34.50 April 53.50 May 24.88 May 48.13 May 45.38 May 38.88 May 36.00 May 42.50 June 29.63 June 47.63 June 47.75 June 43.75 June 31.50 June 35.00 July 29.50 July 38.75 July 56.50 July 46.75 July 30.63 July 44.13 August 29.50 August 39.75 August 51.00 August 31.13 August 25.38 August 44.19 September 32.13 September 40.38 September 52.25 September 24.63 September 28.44 September 35.56 October 33.00 October 39.75 October 42.00 October 33.38 October 33.75 October 30.75 November 30.50 November 37.88 November 37.25 November 33.38 November 47.00 November 22.50 December 30.50 December 32.13 December 37.63 December 34.88 December 62.38 December 23.00
The closing price on January 17, 2001 was 34.25. A-14 NOKIA CORP. (NOK) Nokia Corp. is a leading manufacturer of wireless telephones and a supplier of wireless and wireline network products and services to telecommunications operators and Internet service providers. Nokia telecommunication products include wireless telephones using major digital and analog standards and network access, switching and management systems. Nokia also develops and markets digital satellite, cable and land-based television receivers for broadcast and multimedia applications. American depositary receipts evidencing American depositary shares of Nokia are included in the Europe 2001 HOLDRS and are traded on the New York Stock Exchange. Shares of Nokia also trade on the Helsinki, Frankfurt, Paris, Stockholm and London stock exchanges.
Closing Closing Closing Closing Closing Closing 1995 Price 1996 Price 1997 Price 1998 Price 1999 Price 2000 Price - --------- ------- --------- ------- --------- ------- --------- ------- --------- ------- --------- ------- January 2.29 January 2.34 January 4.19 January 4.75 January 18.02 January 46.00 February 2.35 February 2.18 February 3.66 February 6.30 February 16.95 February 50.88 March 2.30 March 2.14 March 3.64 March 6.75 March 19.47 March 55.50 April 2.56 April 2.28 April 4.04 April 8.36 April 18.55 April 57.25 May 2.91 May 2.72 May 4.13 May 8.12 May 17.81 May 52.00 June 3.74 June 2.31 June 4.61 June 9.09 June 22.89 June 49.94 July 4.13 July 2.20 July 5.35 July 10.91 July 21.27 July 44.31 August 4.33 August 2.64 August 4.84 August 8.35 August 20.91 August 44.94 September 4.36 September 2.77 September 5.86 September 9.78 September 22.47 September 39.81 October 3.48 October 2.90 October 5.52 October 11.63 October 28.89 October 42.75 November 3.39 November 3.51 November 5.20 November 12.25 November 34.50 November 42.75 December 2.44 December 3.60 December 4.34 December 15.05 December 47.77 December 43.50
The closing price on January 17, 2001 was 40.19. NOVARTIS AG (NVS) Novartis AG is a pharmaceutical company that is primarily involved in healthcare, agriculture and nutrition. Novartis develops and sells prescription medicines and offers over-the-counter medicines such as Maalox and Thera Flu and also offers the CIBA Vision brand of contact lenses and related products. Novartis also develops products for sustainable agriculture and provides pharmaceuticals for animal health. American depositary receipts evidencing American depositary shares of Novartis are included in the Europe 2001 HOLDRS and are traded on the New York Stock Exchange. Prior to listing on the New York Stock Exchange on May 11, 2000, Novartis' American depositary receipts were traded in the United States in the over-the-counter market. Shares of Novartis also trade on the Swiss Stock Exchange and the London International Stock Exchange.
Closing Closing Closing Closing Closing Closing 1995 Price 1996 Price 1997 Price 1998 Price 1999 Price 2000 Price - --------- ------- --------- ------- --------- ------- --------- ------- --------- ------- --------- ------- January * January * January 28.62 January 42.86 January 46.78 January 30.86 February * February * February 28.58 February 45.60 February 43.86 February 31.83 March * March * March 30.99 March 44.24 March 40.55 March 34.19 April * April * April 32.95 April 41.34 April 36.67 April 35.01 May * May * May 33.93 May 42.40 May 36.36 May 36.88 June * June * June 40.02 June 41.60 June 36.51 June 40.00 July * July * July 40.13 July 42.17 July 36.07 July 38.56 August * August * August 35.51 August 38.87 August 35.97 August 37.81 September * September * September 38.39 September 40.07 September 37.09 September 38.69 October * October * October 39.26 October 45.05 October 37.41 October 38.38 November * November * November 39.95 November 47.07 November 38.96 November 40.56 December * December 28.54 December 40.62 December 49.15 December 36.51 December 44.75
The closing price on January 17, 2001 was 41.19. A-15 QIAGEN N.V. (QGENF) QIAGEN N.V. produces and distributes biotechnology products for the separation, purification and handling of nucleic acids, which are used in drug screening and the development of genetic vaccinations. QIAGEN's products are sold to academic research markets and to leading pharmaceutical and biotechnology companies. QIAGEN also assembles and distributes robotic equipment to be used with their products. New York registered shares of QIAGEN, included in the Europe 2001 HOLDRS, are traded through the Nasdaq NMS. Shares of QIAGEN also trade on the Frankfurt Stock Exchange.
Closing Closing Closing Closing Closing Closing 1995 Price 1996 Price 1997 Price 1998 Price 1999 Price 2000 Price - --------- ------- --------- ------- --------- ------- --------- ------- --------- ------- --------- ------- January * January * January 3.14 January 5.63 January 8.61 January 24.72 February * February * February 3.22 February 5.96 February 9.05 February 43.63 March * March * March 4.16 March 8.34 March 8.52 March 34.00 April * April * April 4.34 April 8.17 April 9.16 April 36.28 May * May * May 4.88 May 7.69 May 8.77 May 38.09 June * June 1.89 June 6.02 June 7.88 June 8.50 June 43.50 July * July 2.80 July 6.75 July 8.06 July 9.00 July 49.75 August * August 2.98 August 5.97 August 6.22 August 10.94 August 47.75 September * September 3.69 September 5.81 September 6.81 September 10.66 September 47.13 October * October 3.42 October 5.70 October 7.59 October 13.34 October 43.13 November * November 3.33 November 5.61 November 7.63 November 16.75 November 34.56 December * December 3.22 December 5.58 December 7.53 December 18.88 December 34.59
The closing price on January 17, 2001 was 30.81. REPSOL YPF, S.A. (REP) Repsol YPF, S.A. is involved in a variety of aspects of the petroleum business, including exploration, development and production of crude oil and natural gas and the transportation, refining and petrochemicals and derivatives. American depositary receipts evidencing American depositary shares of Repsol are included in the Europe 2001 HOLDRS and are traded on the New York Stock Exchange. Shares of Repsol also trade on the Madrid Stock Exchange.
Closing Closing Closing Closing Closing Closing 1995 Price 1996 Price 1997 Price 1998 Price 1999 Price 2000 Price - --------- ------- --------- ------- --------- ------- --------- ------- --------- ------- --------- ------- January 9.33 January 11.63 January 13.21 January 14.23 January 18.10 January 19.00 February 9.54 February 12.08 February 12.67 February 14.83 February 17.50 February 19.13 March 9.67 March 12.46 March 13.58 March 16.96 March 17.08 March 21.31 April 10.67 April 12.33 April 13.96 April 18.23 April 16.50 April 20.63 May 10.83 May 11.29 May 14.04 May 18.25 May 18.00 May 21.06 June 10.54 June 11.58 June 14.15 June 18.33 June 20.31 June 19.81 July 11.13 July 11.13 July 13.38 July 17.90 July 20.69 July 18.88 August 10.54 August 10.88 August 13.13 August 14.65 August 20.88 August 19.81 September 10.54 September 11.04 September 14.46 September 14.06 September 19.94 September 18.31 October 9.88 October 10.88 October 14.17 October 16.67 October 20.50 October 15.94 November 10.54 November 12.21 November 14.38 November 18.71 November 21.75 November 16.38 December 10.96 December 12.71 December 14.19 December 18.21 December 23.25 December 16.13
The closing price on January 17, 2001 was 17.88. A-16 ROYAL DUTCH PETROLEUM COMPANY (RD) Royal Dutch Petroleum Company is a holding company which owns 60% of the companies comprising the Royal Dutch/Shell group of companies. The Royal Dutch/Shell group of companies was formed out of an alliance between Royal Dutch Petroleum and The "Shell" Transport and Trading Company, p.l.c. The companies primarily engage in the development and distribution of oil and natural gas and related products and services. The companies also have investments in chemicals, coal, solar energy and power generation businesses. Royal Dutch Petroleum together with The "Shell" Transport and Trading Company, p.l.c. owns 100% of the outstanding shares of the companies included in the Royal Dutch/Shell group of companies. New York registered shares of Royal Dutch Petroleum, included in the Europe 2001 HOLDRS, are traded on the New York Stock Exchange. Shares of Royal Dutch Petroleum also trade on the London International Stock Exchange and on the Brussels, Frankfurt, Geneva, Basel, Vienna, Paris, Luxembourg, and Zurich stock exchanges.
Closing Closing Closing Closing Closing Closing 1995 Price 1996 Price 1997 Price 1998 Price 1999 Price 2000 Price - --------- ------- --------- ------- --------- ------- --------- ------- --------- ------- --------- ------- January 27.97 January 34.75 January 43.34 January 51.25 January 40.06 January 55.06 February 28.03 February 34.44 February 43.25 February 54.31 February 43.88 February 52.75 March 30.00 March 35.31 March 43.75 March 56.81 March 52.00 March 57.81 April 31.00 April 35.78 April 45.06 April 56.50 April 58.69 April 57.38 May 31.69 May 37.48 May 48.81 May 56.13 May 56.56 May 62.44 June 30.47 June 38.44 June 54.38 June 54.81 June 60.25 June 61.56 July 31.75 July 37.72 July 55.94 July 51.00 July 61.00 July 58.25 August 29.81 August 37.34 August 50.75 August 40.00 August 61.88 August 61.19 September 30.69 September 39.03 September 55.50 September 47.63 September 59.06 September 59.94 October 30.72 October 41.34 October 52.69 October 49.31 October 59.94 October 59.38 November 32.09 November 42.47 November 52.69 November 46.94 November 58.00 November 59.69 December 35.28 December 42.69 December 54.19 December 47.88 December 60.56 December 60.56
The closing price on January 17, 2001 was 59.38. RYANAIR HOLDINGS P.L.C. (RYAAY) Ryanair Holdings p.l.c. operates a passenger airline serving routes primarily between Ireland and the United Kingdom. Ryanair currently offers scheduled flights per day serving locations in England, Ireland, Scotland, Wales and continental Europe. It also provides related services to its customers, including charter flights and cargo services. American depositary receipts evidencing American depositary shares of Ryanair are included in the Europe 2001 HOLDRS and are traded through Nasdaq NMS. Shares of Ryanair also trade on the Irish Stock Exchange and London International Stock Exchange.
Closing Closing Closing Closing Closing Closing 1995 Price 1996 Price 1997 Price 1998 Price 1999 Price 2000 Price - --------- ------- --------- ------- --------- ------- --------- ------- --------- ------- --------- ------- January * January * January * January 12.38 January 17.13 January 34.06 February * February * February * February 18.50 February 18.94 February 34.00 March * March * March * March 18.50 March 20.38 March 45.88 April * April * April * April 19.19 April 22.38 April 40.75 May * May * May 12.38 May 17.56 May 22.00 May 40.50 June * June * June 13.56 June 17.81 June 26.50 June 36.50 July * July * July 14.13 July 19.50 July 26.00 July 42.13 August * August * August 13.75 August 14.75 August 22.94 August 36.75 September * September * September 15.02 September 17.13 September 22.94 September 38.50 October * October * October 12.50 October 14.69 October 20.63 October 40.31 November * November * November 13.38 November 13.63 November 24.94 November 48.50 December * December * December 12.56 December 18.88 December 27.56 December 55.69
The closing price on January 17, 2001 was 50.13. A-17 SAP AG (SAP) SAP AG develops and markets software that integrates the way businesses interact internally and with third parties. SAP software enables companies of all sizes and industries to fully interact with their employees, customers and partners. Specifically, SAP software is designed to optimize supply chains, manage strategic relationships, reduce time to market and share information. SAP's preference shares, which are included in the Europe 2001 HOLDRS, are listed on the New York Stock Exchange through American depositary receipts and also trade on the Frankfurt Stock Exchange and the Swiss Stock Exchange. SAP preference shares have limited voting rights and holders of the preference shares may vote only on matters affecting their rights in the preference shares.
Closing Closing Closing Closing Closing Closing 1995 Price 1996 Price 1997 Price 1998 Price 1999 Price 2000 Price - --------- ------- --------- ------- --------- ------- --------- ------- --------- ------- --------- ------- January * January 12.73 January 12.51 January 30.24 January 33.94 January 65.19 February * February 13.08 February 12.85 February 34.31 February 32.00 February 71.31 March * March 11.99 March 14.27 March 35.41 March 26.31 March 59.75 April * April 11.04 April 15.33 April 41.52 April 31.38 April 49.13 May * May 11.64 May 15.18 May 46.23 May 33.56 May 42.88 June * June 12.34 June 17.29 June 56.50 June 34.63 June 46.94 July * July 11.90 July 20.21 July 61.37 July 31.69 July 55.75 August * August 13.67 August 19.10 August 41.88 August 33.00 August 64.19 September * September 14.00 September 22.25 September 38.94 September 37.75 September 61.50 October 12.77 October 11.21 October 24.84 October 42.06 October 36.56 October 51.00 November 13.15 November 11.45 November 25.63 November 42.31 November 33.56 November 33.25 December 12.62 December 11.61 December 27.25 December 36.06 December 52.06 December 33.69
The closing price on January 17, 2001 was 44.13. SCOTTISH POWER P.L.C. (SPI) Scottish Power p.l.c. is involved in the generation, transmission and distribution of electricity to residential, commercial and industrial customers in the United Kingdom and the northwest United States. In addition, Scottish Power provides gas supply services, water and wastewater services and telecommunications services. American depositary receipts evidencing American depositary shares of Scottish Power are included in the Europe 2001 HOLDRS and are traded through Nasdaq NMS. Shares of Scottish Power also trade on the London International Stock Exchange.
Closing Closing Closing Closing Closing Closing 1995 Price 1996 Price 1997 Price 1998 Price 1999 Price 2000 Price - --------- ------- --------- ------- --------- ------- --------- ------- --------- ------- --------- ------- January 20.83 January 22.97 January 24.01 January 35.00 January 42.25 January 27.69 February 20.73 February 22.41 February 22.91 February 34.38 February 37.56 February 30.06 March 20.91 March 21.10 March 23.22 March 37.94 March 35.19 March 31.69 April 21.76 April 22.36 April 24.21 April 36.50 April 33.50 April 31.94 May 21.22 May 19.71 May 25.13 May 36.50 May 35.38 May 32.06 June 20.62 June 18.89 June 26.03 June 35.25 June 35.00 June 33.44 July 20.13 July 19.62 July 28.23 July 38.75 July 33.63 July 33.13 August 21.10 August 19.16 August 28.22 August 39.13 August 36.81 August 30.13 September 22.28 September 19.10 September 31.00 September 39.75 September 36.31 September 30.06 October 22.03 October 20.49 October 30.75 October 40.00 October 36.81 October 30.19 November 23.00 November 22.72 November 33.00 November 42.88 November 34.94 November 29.38 December 22.98 December 24.10 December 35.63 December 41.31 December 28.00 December 30.31
The closing price on January 17, 2001 was 26.81. A-18 SERONO S.A. (SRA) Serono S.A. is a biotechnology company that focuses on research and development and manufacturing and marketing of drugs in the reproductive health, neurology, metabolism and growth areas. The company operates globally and has entered into exclusive agreements with biotechnology companies in Britain and the United States related to research, development, commercialization and delivery of Serono products. American depositary receipts evidencing American depositary shares of Serono are included in the Europe 2001 HOLDRS and are traded on the New York Stock Exchange. Shares of Serono also trade on the Swiss Stock Exchange.
Closing Closing Closing Closing Closing Closing 1995 Price 1996 Price 1997 Price 1998 Price 1999 Price 2000 Price - --------- ------- --------- ------- --------- ------- --------- ------- --------- ------- --------- ------- January * January * January * January * January * January * February * February * February * February * February * February * March * March * March * March * March * March * April * April * April * April * April * April * May * May * May * May * May * May * June * June * June * June * June * June * July * July * July * July * July * July 27.00 August * August * August * August * August * August 28.63 September * September * September * September * September * September 30.25 October * October * October * October * October * October 22.63 November * November * November * November * November * November 21.38 December * December * December * December * December * December 23.94
The closing price on January 17, 2001 was 21.13. SHIRE PHARMACEUTICALS GROUP P.L.C. (SHPGY) Shire Pharmaceuticals Group p.l.c. is an international pharmaceutical company focused on four therapeutic areas: central nervous system disorders, metabolic diseases, cancer and gastrointestinal disorders. Shire develops, manufactures and markets pharmaceutical products. On December 11, 2000, BioChem Pharma Inc. and Shire announced an agreement to merge. The merger is subject to shareholder and regulatory approval as well as customary closing conditions. American depositary receipts evidencing American depositary shares of Shire are included in the Europe 2001 HOLDRS and are traded on the New York Stock Exchange. Shares of Shire also trade on the London International Stock Exchange.
Closing Closing Closing Closing Closing Closing 1995 Price 1996 Price 1997 Price 1998 Price 1999 Price 2000 Price - --------- ------- --------- ------- --------- ------- --------- ------- --------- ------- --------- ------- January * January * January * January * January 21.13 January 40.69 February * February * February * February * February 20.50 February 48.00 March * March * March * March 21.44 March 22.81 March 51.25 April * April * April * April 22.50 April 21.63 April 40.25 May * May * May * May 19.50 May 23.75 May 43.63 June * June * June * June 21.38 June 26.00 June 51.88 July * July * July * July 24.00 July 25.38 July 54.75 August * August * August * August 18.75 August 25.00 August 56.50 September * September * September * September 21.88 September 28.81 September 51.63 October * October * October * October 21.75 October 31.75 October 62.88 November * November * November * November 22.00 November 30.69 November 45.63 December * December * December * December 20.25 December 29.13 December 46.06
The closing price on January 17, 2001 was 53.94. A-19 SMARTFORCE P.L.C. (SMTF) Smartforce p.l.c. provides an interactive software platform for business education and training of employees in businesses and organizations in areas, including information technology, business skills, interpersonal skills and project management. Smartforce generates revenue principally from software license agreements covering licenses of their courses to companies for a period of one or more years. American depositary receipts evidencing American depositary shares of Smartforce are included in the Europe 2001 HOLDRS and are traded through Nasdaq NMS.
Closing Closing Closing Closing Closing Closing 1995 Price 1996 Price 1997 Price 1998 Price 1999 Price 2000 Price - --------- ------- --------- ------- --------- ------- --------- ------- --------- ------- --------- ------- January * January 13.56 January 31.88 January 45.44 January 17.88 January 34.00 February * February 14.13 February 27.25 February 45.75 February 15.94 February 44.06 March * March 18.38 March 24.94 March 51.75 March 11.44 March 45.88 April 6.63 April 18.50 April 24.31 April 50.88 April 15.50 April 47.75 May 8.94 May 23.50 May 27.25 May 49.75 May 15.25 May 42.06 June 10.59 June 23.13 June 31.56 June 53.50 June 16.50 June 48.00 July 11.33 July 21.88 July 33.13 July 58.00 July 28.00 July 44.25 August 9.88 August 22.38 August 32.50 August 47.00 August 21.00 August 52.00 September 11.94 September 23.50 September 40.13 September 13.50 September 24.63 September 47.38 October 11.28 October 27.50 October 38.38 October 11.94 October 20.63 October 50.33 November 13.50 November 28.75 November 35.31 November 10.50 November 24.50 November 32.06 December 13.25 December 27.13 December 41.06 December 14.88 December 33.50 December 37.56
The closing price on January 17, 2001 was 36.27. SONERA GROUP P.L.C. (SNRA) Sonera Group p.l.c. provides telecommunication services to residential and business customers, primarily in Finland. Sonera's major lines of business include mobile communications and services, media communications and new services, and fixed network voice and data services. Sonera recently announced that it intends to make initial public offerings of each of its wireless portal, wireless certification and Internet network media service subsidiaries. American depositary receipts representing American depositary shares of Sonera are included in the Europe 2001 HOLDRS and are traded through the Nasdaq NMS. Shares of Sonera also trade on the Helsinki Exchange.
Closing Closing Closing Closing Closing Closing 1995 Price 1996 Price 1997 Price 1998 Price 1999 Price 2000 Price - --------- ------- --------- ------- --------- ------- --------- ------- --------- ------- --------- ------- January * January * January * January * January * January 69.25 February * February * February * February * February * February 78.50 March * March * March * March * March * March 66.38 April * April * April * April * April * April 54.50 May * May * May * May * May * May 50.44 June * June * June * June * June * June 46.00 July * July * July * July * July * July 39.69 August * August * August * August * August * August 33.81 September * September * September * September * September * September 25.25 October * October * October * October * October 31.00 October 22.38 November * November * November * November * November 40.13 November 18.63 December * December * December * December * December 69.25 December 17.38
The closing price on January 17, 2001 was 21.75. A-20 STMICROELECTRONICS N.V. (STM) STMicroelectronics N.V. designs, develops, manufactures and markets a broad range of semiconductor integrated circuits and devices used in a wide variety of microelectronic applications, including telecommunications systems, computer systems, consumer products, automotive products and industrial automation and control systems. STMicroelectronics markets and sells its products primarily through its direct sales force, distributors and representatives. New York registered shares of STMicroelectronics, included in the Europe 2001 HOLDRS, are traded on the New York Stock Exchange. Shares of STMicroelectronics also trade on the Paris and Italian Stock Exchanges and are also quoted on SEAQ International.
Closing Closing Closing Closing Closing Closing 1995 Price 1996 Price 1997 Price 1998 Price 1999 Price 2000 Price - --------- ------- --------- ------- --------- ------- --------- ------- --------- ------- --------- ------- January 4.15 January 6.04 January 11.79 January 11.32 January 17.42 January 56.13 February 4.17 February 6.15 February 11.00 February 12.69 February 14.56 February 66.67 March 4.96 March 6.04 March 11.00 March 12.93 March 16.19 March 62.40 April 6.21 April 7.83 April 13.06 April 14.08 April 17.00 April 63.23 May 5.88 May 7.00 May 13.92 May 12.90 May 19.35 May 60.06 June 6.77 June 5.98 June 13.33 June 11.65 June 23.10 June 64.19 July 7.88 July 5.75 July 15.23 July 10.60 July 23.50 July 56.94 August 8.02 August 6.81 August 15.48 August 8.70 August 22.35 August 61.69 September 8.10 September 7.90 September 15.65 September 7.49 September 24.69 September 47.63 October 7.54 October 8.73 October 11.88 October 10.14 October 30.29 October 51.94 November 6.21 November 11.10 November 11.70 November 11.19 November 41.69 November 40.75 December 6.71 December 11.67 December 10.18 December 13.01 December 50.48 December 42.81
The closing price on January 17, 2001 was 44.81. TELEFONICA S.A. (TEF) Telefonica, S.A. is a supplier of telecommunications services in Spain, Portugal and Latin America. Telefonica provides its clients with customized integrated solutions in the areas of communications-fixed-line, mobile, internet, data and television. American depositary receipts evidencing American depositary shares of Telefonica are included in the Europe 2001 HOLDRS and are traded on the New York Stock Exchange. Shares of Telefonica also trade on the London, Paris, Frankfurt, Tokyo, Buenos Aires, Sao Paulo and Lima stock exchanges.
Closing Closing Closing Closing Closing Closing 1995 Price 1996 Price 1997 Price 1998 Price 1999 Price 2000 Price - --------- ------- --------- ------- --------- ------- --------- ------- --------- ------- --------- ------- January 12.05 January 14.42 January 22.88 January 31.90 January 45.18 January 76.00 February 12.25 February 16.05 February 22.51 February 33.82 February 44.93 February 86.69 March 12.25 March 15.52 March 23.45 March 43.22 March 41.75 March 74.38 April 12.01 April 17.20 April 25.16 April 40.83 April 45.55 April 66.25 May 13.07 May 17.12 May 28.55 May 43.95 May 47.14 May 60.88 June 12.66 June 18.01 June 28.19 June 45.45 June 48.08 June 64.06 July 13.32 July 17.08 July 25.82 July 47.55 July 46.81 July 63.31 August 13.28 August 18.10 August 25.41 August 35.66 August 47.24 August 57.31 September 13.44 September 18.18 September 30.76 September 35.27 September 47.06 September 59.44 October 12.30 October 19.69 October 26.88 October 44.75 October 48.96 October 57.94 November 13.56 November 21.57 November 28.27 November 45.55 November 62.13 November 47.31 December 13.68 December 22.63 December 29.76 December 44.24 December 78.81 December 49.02
The closing price on January 17, 2001 was 57.25. A-21 TERRA NETWORKS, S.A. (TRLY) Terra Networks, S.A. provides Internet access and local-language interactive content and services to Spanish and Portuguese-speaking residential and small office/home office customers in Spain, Brazil, Mexico, Peru, Chile and Guatemala. American depositary receipts evidencing American depositary shares of Terra Networks are included in the Europe 2001 HOLDRS and are traded through Nasdaq NMS. Shares of Terra Networks also trade on the Madrid Stock Exchange.
Closing Closing Closing Closing Closing Closing 1995 Price 1996 Price 1997 Price 1998 Price 1999 Price 2000 Price - --------- ------- --------- ------- --------- ------- --------- ------- --------- ------- --------- ------- January * January * January * January * January * January 87.81 February * February * February * February * February * February 129.63 March * March * March * March * March * March 78.50 April * April * April * April * April * April 62.50 May * May * May * May * May * May 43.63 June * June * June * June * June * June 36.47 July * July * July * July * July * July 38.19 August * August * August * August * August * August 40.13 September * September * September * September * September * September 36.75 October * October * October * October * October * October 24.19 November * November * November * November * November 33.75 November 14.00 December * December * December * December * December 54.75 December 10.56
The closing price on January 17, 2001 was 14.25. TOTAL FINA ELF S.A. (TOT) Total Fina Elf S.A. is an international oil and gas company. Total Fina is involved in many aspects of the petroleum industry, including oil and gas exploration, development and production, refining and marketing and trading and shipping of crude oil and petroleum products. Total Fina also produces petrochemicals and specialty chemical products for industrial and consumer use. In addition, Total Fina is involved in the coal mining, nuclear power, cogeneration and electricity sectors. American depositary receipts evidencing American depositary shares of Total Fina are included in the Europe 2001 HOLDRS and are traded on the New York Stock Exchange. Shares of Total Fina also trade on the Paris Stock Exchange.
Closing Closing Closing Closing Closing Closing 1995 Price 1996 Price 1997 Price 1998 Price 1999 Price 2000 Price - --------- ------- --------- ------- --------- ------- --------- ------- --------- ------- --------- ------- January 28.38 January 34.50 January 43.13 January 51.88 January 51.25 January 62.25 February 27.75 February 32.88 February 39.63 February 55.00 February 51.63 February 67.13 March 30.00 March 34.00 March 42.38 March 60.06 March 61.00 March 73.63 April 31.38 April 34.25 April 41.63 April 58.75 April 68.00 April 75.63 May 31.00 May 36.00 May 45.63 May 62.31 May 60.81 May 78.94 June 30.25 June 37.13 June 50.63 June 65.38 June 64.44 June 76.81 July 31.13 July 35.75 July 50.44 July 57.19 July 63.63 July 73.56 August 29.75 August 37.13 August 47.38 August 48.06 August 65.04 August 74.50 September 30.13 September 39.13 September 57.31 September 62.81 September 63.44 September 73.44 October 30.88 October 39.00 October 55.50 October 58.50 October 66.69 October 71.63 November 30.88 November 40.38 November 52.56 November 61.13 November 66.13 November 70.63 December 34.00 December 40.25 December 55.75 December 49.75 December 69.25 December 72.69
The closing price on January 17, 2001 was 69.81. A-22 UBS AG (UBS) UBS AG is a global investment banking services firm that offers investment, trading and risk management services. On November 3, 2000, UBS acquired Paine Webber Group, Inc. UBS's clients include international corporations, small and medium-sized businesses in Switzerland, governments and other public bodies, financial institutions, market participants and individuals. Global shares of UBS, included in the Europe 2001 HOLDRS, are traded on the New York Stock Exchange. Shares of UBS also trade on the Zurich Stock Exchange and the Tokyo Stock Exchange.
Closing Closing Closing Closing Closing Closing 1995 Price 1996 Price 1997 Price 1998 Price 1999 Price 2000 Price - --------- ------- --------- ------- --------- ------- --------- ------- --------- ------- --------- ------- January * January * January * January * January * January * February * February * February * February * February * February * March * March * March * March * March * March * April * April * April * April * April * April * May * May * May * May * May * May 135.25 June * June * June * June * June * June 147.00 July * July * July * July * July * July 144.00 August * August * August * August * August * August 146.19 September * September * September * September * September * September 135.44 October * October * October * October * October * October 140.00 November * November * November * November * November * November 137.25 December * December * December * December * December * December 163.41
The closing price on January 17, 2001 was 170.50. UNILEVER N.V. (UN) Unilever N.V. is an international supplier of consumer goods in the food, home and personal care product categories. Unilever products include culinary, frozen food, deodorant, hair care, laundry, cooking, skin and oral care and fragrance products sold under such brand names as Ponds, Dove, Lipton and Magnum. New York registered shares of Unilever, included in the Europe 2001 HOLDRS, trade on the New York Stock Exchange. Shares of Unilever also trade on the Amsterdam, London, Belgium, France, Germany, Luxembourg and Swiss stock exchanges.
Closing Closing Closing Closing Closing Closing 1995 Price 1996 Price 1997 Price 1998 Price 1999 Price 2000 Price - --------- ------- --------- ------- --------- ------- --------- ------- --------- ------- --------- ------- January 33.04 January 40.57 January 46.06 January 63.91 January 85.68 January 46.25 February 34.02 February 37.66 February 53.34 February 72.03 February 81.13 February 45.50 March 36.75 March 38.01 March 52.15 March 76.86 March 74.41 March 48.13 April 37.42 April 38.22 April 54.95 April 83.58 April 72.73 April 45.56 May 35.63 May 37.77 May 54.25 May 88.41 May 65.31 May 50.81 June 36.44 June 40.64 June 61.04 June 88.41 June 69.75 June 43.00 July 36.89 July 39.83 July 61.04 July 78.12 July 69.88 July 44.25 August 34.62 August 40.18 August 56.35 August 71.12 August 68.88 August 47.25 September 36.40 September 44.14 September 59.54 September 68.60 September 68.13 September 48.25 October 36.68 October 42.81 October 59.78 October 84.28 October 66.69 October 50.81 November 37.21 November 48.48 November 65.03 November 87.08 November 54.44 November 62.06 December 39.41 December 49.07 December 69.93 December 92.89 December 54.44 December 62.94
The closing price on January 17, 2001 was 56.00. A-23 UNITED PAN-EUROPE COMMUNICATIONS N.V. (UPCOY) United Pan-Europe Communications N.V. owns and operates broadband communications networks in 17 countries in Europe and also in Israel. United Pan-Europe provides communications services in Europe through its cable television, telephony, Internet/data services, direct-to-home and media business lines. American depositary receipts evidencing American depositary shares of United Pan-Europe are included in the Europe 2001 HOLDRS and trade through the Nasdaq NMS. Shares of United Pan-Europe also trade on the Amsterdam Stock Exchange.
Closing Closing Closing Closing Closing Closing 1995 Price 1996 Price 1997 Price 1998 Price 1999 Price 2000 Price - --------- ------- --------- ------- --------- ------- --------- ------- --------- ------- --------- ------- January * January * January * January * January * January 42.50 February * February * February * February * February 12.60 February 66.21 March * March * March * March * March 12.75 March 49.56 April * April * April * April * April 16.98 April 36.56 May * May * May * May * May 20.54 May 25.63 June * June * June * June * June 18.42 June 27.00 July * July * July * July * July 21.33 July 25.63 August * August * August * August * August 20.25 August 24.00 September * September * September * September * September 20.33 September 19.44 October * October * October * October * October 25.83 October 18.25 November * November * November * November * November 32.25 November 11.75 December * December * December * December * December 42.50 December 10.50
The closing price on January 17, 2001 was 15.13. VIVENDI UNIVERSAL (V) Vivendi Universal is an international media, communications and environmental services company. Vivendi Universal's media and communications operations are involved in the television, film, publishing, music, Internet and telecommunications industries. Vivendi Universal also offers a variety of environmental services, including water treatment and systems operation, waste management, energy and transportation services to public authorities and industrial, commercial and residential customers. On December 8, 2000, Vivendi Universal completed its merger with The Seagram Company Ltd. and CANAL+, and changed its name from Vivendi to Vivendi Universal. On December 6, 2000, Diageo p.l.c. and Pernod Ricard S.A. announced an agreement to acquire the wine and spirits business of Vivendi Universal's indirect subsidiary, The Seagram Company Ltd. This transaction is subject to regulatory approval and customary closing conditions. American depositary receipts evidencing American depositary shares of Vivendi Universal are included in the Europe 2001 HOLDRS and are traded on the New York Stock Exchange. Shares of Vivendi Universal also trade on the Paris and Toronto stock exchanges.
Closing Closing Closing Closing Closing Closing 1995 Price 1996 Price 1997 Price 1998 Price 1999 Price 2000 Price - --------- ------- --------- ------- --------- ------- --------- ------- --------- ------- --------- ------- January * January 7.07 January 8.54 January 9.68 January 19.49 January 20.55 February * February 6.68 February 9.28 February 10.49 February 17.38 February 23.49 March * March 6.82 March 9.06 March 10.82 March 16.40 March 23.06 April * April 7.24 April 9.29 April 12.39 April 15.59 April 19.83 May * May 7.12 May 8.22 May 13.39 May 14.58 May 21.33 June 7.43 June 7.45 June 8.55 June 14.24 June 16.20 June 17.72 July 7.90 July 6.86 July 8.43 July 14.59 July 15.72 July 15.98 August 7.05 August 6.44 August 7.45 August 13.29 August 15.44 August 16.36 September 6.42 September 7.25 September 7.84 September 13.27 September 14.05 September 14.81 October 6.19 October 7.97 October 7.79 October 15.22 October 15.15 October 14.56 November 6.50 November 8.22 November 8.81 November 15.12 November 16.01 November 12.38 December 6.66 December 8.25 December 9.31 December 17.31 December 17.97 December 65.31
The closing price on January 17, 2001 was 71.06. A-24 VODAFONE AIRTOUCH P.L.C. (VOD) Vodafone Airtouch p.l.c. provides international wireless telecommunications services which include selling and renting cellular telephone equipment, providing messaging and data transmission facilities and access to information services. Vodafone's principal business is the operation of digital and analog wireless telephone networks in the United Kingdom. Vodafone also has investments in several international telecommunications operations. Service on Vodafone networks is generally sold by third-party service providers or retailers who also sell or rent cellular telephone equipment. American depositary receipts evidencing American depositary shares of Vodafone are included in the Europe 2001 HOLDRS and are traded on the New York Stock Exchange. Shares of Vodafone also trade on the London International Stock Exchange.
Closing Closing Closing Closing Closing Closing 1995 Price 1996 Price 1997 Price 1998 Price 1999 Price 2000 Price - --------- ------- --------- ------- --------- ------- --------- ------- --------- ------- --------- ------- January 6.13 January 7.15 January 8.60 January 15.05 January 39.05 January 56.00 February 6.13 February 7.08 February 9.50 February 17.70 February 36.44 February 57.69 March 6.63 March 7.50 March 8.83 March 20.78 March 37.55 March 55.56 April 6.38 April 8.03 April 8.85 April 21.99 April 35.91 April 47.00 May 6.75 May 7.93 May 8.93 May 21.98 May 38.28 May 45.81 June 7.58 June 7.38 June 9.69 June 25.21 June 39.40 June 41.44 July 7.88 July 7.15 July 10.10 July 27.30 July 42.10 July 43.13 August 8.38 August 7.58 August 10.19 August 25.13 August 40.11 August 40.94 September 8.20 September 6.83 September 10.75 September 22.68 September 47.55 September 37.00 October 8.18 October 7.73 October 10.98 October 26.93 October 47.63 October 42.56 November 7.20 November 8.65 November 13.20 November 29.54 November 47.19 November 34.38 December 7.05 December 8.28 December 14.53 December 32.23 December 49.50 December 35.81
The closing price on January 17, 2001 was 33.50. WPP GROUP P.L.C. (WPPGY) WPP Group p.l.c. is an international communication services organization that provides advertising, media investment management, information and consultancy, public relations and public affairs, branding and identity, healthcare and specialist communications. American depositary receipts evidencing American depositary shares of WPP Group are included in the Europe 2001 HOLDRS and traded through Nasdaq NMS. Shares of WPP Group also trade on the London International Stock Exchange.
Closing Closing Closing Closing Closing Closing 1995 Price 1996 Price 1997 Price 1998 Price 1999 Price 2000 Price - --------- ------- --------- ------- --------- ------- --------- ------- --------- ------- --------- ------- January 8.75 January 13.00 January 19.56 January 21.75 January 37.41 January 81.00 February 8.44 February 13.75 February 21.50 February 26.81 February 39.81 February 99.00 March 7.97 March 15.31 March 20.38 March 29.00 March 43.25 March 86.75 April 8.75 April 15.50 April 20.44 April 32.19 April 43.88 April 77.38 May 9.69 May 15.38 May 19.69 May 32.00 May 40.81 May 60.56 June 9.38 June 16.75 June 20.38 June 33.63 June 42.88 June 72.63 July 10.78 July 16.25 July 20.56 July 33.69 July 44.75 July 69.00 August 13.13 August 18.19 August 23.00 August 27.19 August 46.97 August 70.63 September 12.03 September 18.31 September 22.94 September 22.81 September 46.50 September 59.31 October 12.03 October 18.44 October 23.06 October 24.88 October 54.94 October 66.88 November 12.13 November 18.31 November 22.66 November 27.75 November 72.50 November 53.44 December 12.69 December 21.47 December 22.56 December 30.88 December 83.13 December 62.81
The closing price on January 17, 2001 was 62.69. A-25 - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- [LOGO OF HOLDRS] 1,000,000,000 Depositary Receipts Europe 2001 HOLDRSSM Trust --------------------- PROSPECTUS --------------------- Merrill Lynch & Co. Robert W. Baird & Co. A.G. Edwards & Sons, Inc. First Union Securities, Inc. Legg Mason Wood Walker Incorporated Morgan Keegan & Company, Inc. Raymond James & Associates, Inc. Sutro & Co. Incorporated Tucker Anthony Capital Markets January 17, 2001 Until February 11, 2001 (25 days after the date of this prospectus), all dealers effecting transactions in the offered Europe 2001 HOLDRS, whether or not participating in this distribution, may be required to deliver a prospectus. This requirement is in addition to the obligations of dealers to deliver a prospectus when acting as underwriters and with respect to unsold allotments or subscriptions. - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- -----END PRIVACY-ENHANCED MESSAGE-----