PART 1 OF 2, BlackRock, Inc. Reports 19% Increase in Assets Under Management to $293.5 Billion; Third Quarter Diluted E.P.S. Rises 20% to $0.61 Per Share Including Impact of FIN 46

NEW YORK–(BUSINESS WIRE)–Oct. 15, 2003–BlackRock, Inc. (NYSE: BLK) today reported consolidated net income of $40.1 million for the third quarter and $114.1 million for the nine months endedSeptember 30, 2003, a 21% increase compared with $33.2 million earned in the third quarter of 2002 and a 15% increase compared with $99.4 million earned for the nine months ended September 30, 2002.Diluted earnings per share for the three and nine month periods ended September 30, 2003 were $0.61 and $1.73, respectively versus $0.51 and $1.52 for the comparable periods in 2002 (see table 1).

“Our results for the third quarter highlight the exceptional stability of BlackRock’s platform,” commented Laurence D. Fink, Chairman and CEO of BlackRock. “During the quarter, we experienced one of the worst bond markets in more than 20 years. Fixed income assets, however, were up $5.4 billion as a result of strong new business and modest net asset value appreciation. Positive flows in liquidity, domestic equities and alternatives, continued momentum in BlackRock Solutions, and the unwavering commitment and effort of our employees give me added confidence that BlackRock is well-positioned to grow through a variety of market conditions.”

Third Quarter Highlights

— Assets under management were up $7.2 billion during the

quarter to $293.5 billion. Net new business totaled $6.5

billion, including $2.3 billion of inflows from global

insurance companies, $2.4 billion from other international

investors, $1.0 billion in net new closed-end fund assets and

$536 million from domestic tax-exempt clients.

— Fixed income assets were up $5.4 billion to a record high of

$201.4 billion at quarter-end. New business totaled $5.1

billion, with particularly strong growth in global fixed

income mandates, insurance accounts and closed-end funds.

Significantly, pension plan rebalancing activity, which

accounted for over $19.0 billion of outflows over the past

three years, slowed dramatically during the third quarter and,

in fact, reversed during the month of September, when we saw

inflows from both rebalancing and new contributions to defined

benefit plans.

— Liquidity assets closed the quarter at $73.0 billion, with

$1.6 billion of inflows in security lending accounts

overwhelming $185 million of outflows in money market funds

and separate accounts. We recently added a senior sales

professional to assist in our ongoing efforts to maintain and

expand market share in this highly competitive and volatile

asset class.

— Domestic equity assets closed the quarter at $4.8 billion, up

$441 million. During the quarter, we added $316 million in

separate account assets, primarily in mandates managed by our

small cap value and global opportunities teams. Momentum

continues to build across these products, as well as our small

cap growth and core offerings, and we hope to begin

rolling-out our quantitative equity products during 2004.

— International equities continued to struggle, ending the

quarter down $430 million to $7.7 billion. Performance

throughout the year has been weak relative to benchmarks and

peers, as the European team’s concentrated,

“growth-at-a-reasonable-price” style remains out of favor.

Improved performance will be necessary to sustain current

assets under management.

— Alternative investments ended the quarter at $6.7 billion,

with the increase largely attributable to the closing of a

$350 million CDO in September. During September, we announced

the addition of a senior professional to our high yield and

bank loan team, which is responsible for managing all of our

CDOs. At quarter-end, we had substantial wins to be funded in

both fund of funds and real estate debt.

— BlackRock Solutions continued to expand, with two system

implementations in process and three new risk management

assignments added during the quarter. In addition, we are

engaged in ongoing discussions with a number of prospective

clients.

— Our portfolio management teams have delivered competitive

performance in a wide variety of portfolios throughout the

year. These results continue to support a robust new business

pipeline, which included $9.2 billion of wins to be funded at

quarter-end and significant opportunities in development

across our fixed income, domestic equity, alternative and

BlackRock Solutions products.

BlackRock elected to adopt Financial Accounting Standards Board (“FASB”) Interpretation No. 46 “Consolidation of Variable Interest Entities” (“FIN 46”) notwithstanding the recent decision of the FASB to defer implementation to the fourth quarter of 2003. BlackRock acts as collateral manager for six Collateralized Debt Obligations (“CDOs”), including Magnetite V, CLO, Limited, which closed on September 30, 2003. In applying the provisions of FIN 46, BlackRock’s role as collateral manager, together with receipt of market based fees to provide this service, resulted in a determination that BlackRock consolidate the results of operations, financial position and cash flow for these entities.

Due to significant changes in balance sheet and income statement line items resulting from implementation of FIN 46, BlackRock was required under generally accepted accounting principles to realign its previous financial statement reporting formats. In order to provide some measure of transparency to shareholders, BlackRock’s consolidated operating results will be segmented by “Asset Management” (previous reporting) and “Consolidated Special Purpose Entities”. BlackRock’s Condensed Consolidated Statements of Income will no longer be reported in the “operating income” format as a result of a significant increase in investment income and interest expense associated with the operations of the consolidated CDOs.

Asset Management Segment

Net income for the Asset Management segment for the three and nine month periods ended September 30, 2003 was $40.1 million and $114.0 million, respectively, which represented increases of 21% and 15%, respectively, over the comparable periods in 2002. The Asset Management segment’s contribution to diluted earnings per share for the third quarter was $0.61, a 20% increase from $0.51 earned in the third quarter of 2002 and up 5% from $0.58 earned in the second quarter of 2003 (see table 1a). A third quarter 2003 benefit of approximately $0.01 per share associated with a lower full year 2003 effective tax rate estimate to 38.0% was largely offset by an increase in the corporate incentive compensation accrual rate.

Operating income of $57.6 million for the third quarter and $166.5 million for the nine months ended September 30, 2003 increased $2.1 million and $6.4 million, respectively versus $55.5 and $160.1 million for the comparable periods ended September 30, 2002. Increased investment income on BlackRock’s voluntary and involuntary deferred compensation plans recorded as compensation expense reduced operating income growth for the three and nine months ended September 30, 2003 versus 2002 by $3.0 million and $4.4 million, respectively. Investment performance for these plans has a nominal effect on net income as non-operating income and operating income increases or decreases in equal amounts except for minor timing differences. The $2.8 million or 5% increase in operating income from second quarter 2003 results was reduced by approximately $1.0 million associated with the higher incentive compensation accrual rate. Operating margin for the third quarter and nine months ended September 30, 2003 was 40.5% and 40.3%, respectively versus 43.1% and 39.4% for comparable periods in 2002.

Assets under management (“AUM”) at September 30, 2003 were $293.5 billion, a 19% increase compared to $245.9 billion at September 30, 2002 and a 3% increase from the $286.3 billion reported at June 30, 2003. Strong organic growth was a major contributor to the increase in AUM as net new fundings for the third quarter and twelve months ended September 30, 2003 totaled $6.5 billion and $33.8 billion, respectively. Targeted new business activities, particularly closed-end fund issuance and expansion of our insurance business, have resulted in solid gains for 2003.

Asset management revenue for the third quarter ended September 30, 2003 increased $13.2 million or 10% to $150.3 million compared to $137.1 million for the third quarter of 2002. The increase was driven by solid growth in separate account base fees of $10.5 million or 16% and other income of $2.3 million or 16%. Separate account revenue growth was largely attributable to a $32.6 billion or 22% increase in fixed income separate account AUM. Other income growth reflected new business wins for BlackRock Solutions and in our joint venture, Nomura BlackRock Asset Management. The $0.5 million increase in mutual fund revenue for the third quarter of 2003 compared to the third quarter of 2002 was driven by a $2.5 million or 23% increase in closed-end fund revenue due to $2.7 billion in new fund offerings reduced by $0.6 billion in term trust maturities. The increase in closed-end fund revenue was partially offset by revenue declines in the BlackRock Funds and BlackRock Provident Institutional Funds (“BPIF”) of $0.9 million and $1.1 million, respectively. The $0.9 million decline in BlackRock Funds revenue primarily reflects lower PNC related fees of $3.0 million associated with $2.8 billion in redemptions which more than offset the beneficial impact of $1.6 billion in third party net sales. BPIF revenue declined $1.1 million due to a rebate of Securities and Exchange Commission (“SEC”) registration fees in 2002 which more than offset the beneficial impact of an increase in average AUM of $2.8 billion or 5% in 2003.

<pre> ———————————————————————- Three months ended September 30, June 30, ——————– ——— 2003 2002 2003 ———- ——— ——— Dollar amounts in thousands (unaudited) Mutual funds revenue BlackRock Funds $17,255 $18,199 $17,056 Closed End Funds 13,267 10,788 12,301 BPIF 21,694 22,802 18,854 STIF 266 220 285 ———- ——— ——— Total mutual funds revenue 52,482 52,009 48,496 ———- ——— ——— Separate accounts revenue Separate account base fees 78,152 67,653 77,957 Separate account performance fees 2,403 2,496 1,560 ———- ——— ——— Total separate accounts revenue 80,555 70,149 79,517 ———- ——— ——— Total investment advisory and administration fees 133,037 122,158 128,013 ———- ——— ——— Other income 17,307 14,974 15,893 ———- ——— ——— Total revenue $150,344 $137,132 $143,906 ========== ========= ========= Variance vs. —————————– September 30, June 30, 2002 2003 ————— ————- Amount % Amount % ——– —— ——- —– Dollar amounts in thousands Mutual funds revenue BlackRock Funds ($944) (5.2%) $199 1.2% Closed End Funds 2,479 23.0 966 7.9 BPIF (1,108) (4.9) 2,840 15.1 STIF 46 20.9 (19) (6.7) ——– —— ——- —– Total mutual funds revenue 473 0.9 3,986 8.2 ——– —— ——- —– Separate accounts revenue Separate account base fees 10,499 15.5 195 0.3 Separate account performance fees (93) (3.7) 843 54.0 ——– —— ——- —– Total separate accounts revenue 10,406 14.8 1,038 1.3 ——– —— ——- —– Total investment advisory and administration fees 10,879 8.9 5,024 3.9 ——– —— ——- —– Other income 2,333 15.6 1,414 8.9 ——– —— ——- —– Total revenue $13,212 9.6% $6,438 4.5% ======== ====== ======= ===== ———————————————————————- </pre>

Revenue growth from second quarter 2003 results largely from the successful offering of new closed-end funds, higher BPIF AUM and increased sales of BlackRock Solutions products.

Asset management revenue for the nine months ended September 30, 2003 of $437.0 million decreased $2.9 million or 1% compared with $439.9 million for the nine months ended September 30, 2002. Increases in separate account base fees of $35.0 million or 18% and other income of $7.1 million or 17% were more than offset by a $32.7 million decrease in separate account performance fees and a $12.3 million decrease in mutual fund revenue. The decline in separate account performance fees was attributable to a decline in performance fees on BlackRock’s fixed income hedge fund, which as previously disclosed, cannot earn additional performance fees until investment performance exceeds the high water mark. The $35.0 million or 18% increase in separate account base fees was the result of strong growth in fixed income separate account assets. The decrease in mutual fund revenue was driven by a decline in BlackRock Funds revenue and BPIF revenue of $16.3 million and $2.9 million, respectively, partially offset by an increase in closed-end fund revenue of $6.7 million. The decline in BlackRock Funds revenue was largely attributable to a decline in PNC related fees of $17.3 million associated with $2.8 billion of net redemptions in PNC AUM since September 30, 2002 which more than offset the beneficial impact of $1.6 billion in net sales to third party clients. Other income increased largely due to strong sales of BlackRock Solutions products and services and growth in our joint venture, Nomura BlackRock Asset Management.

<pre> ———————————————————————- Nine months ended September 30, Variance ——————— —————– 2003 2002 Amount % ———– ——— ——— ——- Dollar amounts in thousands (unaudited) Mutual funds revenue BlackRock Funds $50,497 $66,786 ($16,289) (24.4%) Closed End Funds 36,881 30,149 6,732 22.3 BPIF 61,547 64,439 (2,892) (4.5) STIF 793 630 163 25.9 ———– ——— ——— ——- Total mutual funds revenue 149,718 162,004 (12,286) (7.6) ———– ——— ——— ——- Separate accounts revenue Separate account base fees 230,622 195,603 35,019 17.9 Separate account performance fees 7,075 39,817 (32,742) (82.2) ———– ——— ——— ——- Total separate accounts revenue 237,697 235,420 2,277 1.0 ———– ——— ——— ——- Total investment advisory and administration fees 387,415 397,424 (10,009) (2.5) ———– ——— ——— ——- Other income 49,586 42,516 7,070 16.6 ———– ——— ——— ——- Total revenue $437,001 $439,940 ($2,939) (0.7%) =========== ========= ========= ======= ———————————————————————- </pre>

Total asset management expense for the third quarter of 2003 increased $11.1 million or 14% to $92.7 million compared with $81.6 million for the third quarter of 2002. The increase was attributable to increases in compensation and benefits and general and administration expenses of $8.8 million and $2.6 million, respectively, partially offset by a decrease in fund administration and servicing costs of $0.4 million. The increase in compensation and benefits reflects higher incentive compensation expense of $4.4 million based on the growth in pre-bonus operating income and a higher accrual rate, increased salaries and benefits of $1.4 million due to business growth, and higher investment income of $3.0 million associated with BlackRock’s voluntary and involuntary deferred compensation plans. The decrease in fund administration servicing costs reflects a $1.2 million decline in affiliated costs associated with reductions in PNC related assets in the BlackRock Funds due to redemptions and the market decline in equity assets partially offset by an increase of $0.8 million in servicing provided by third parties on newly issued closed-end funds.

The rise in general and administration expense was due to increases of $1.0 million in marketing and promotional expense associated with new closed-end fund launches and overall business growth, $0.7 million in occupancy expense, $0.5 million due to increased insurance premiums, $0.5 million in higher professional fees related to implementing FIN 46 and complying with information requests associated with BlackRock’s mutual fund operations and $0.4 million in portfolio and data services.

<pre> ———————————————————————- Three months ended September 30, June 30, ——————– ——— 2003 2002 2003 ———- ——— ——— Dollar amounts in thousands (unaudited) General and administration expense: Marketing and promotional $7,303 $6,309 $6,797 Occupancy expense 5,598 4,903 5,400 Technology 4,271 4,262 4,388 Other general and administration 8,497 7,561 8,891 ———- ——— ——— Total general and administration expense $25,669 $23,035 $25,476 ========== ========= ========= Variance vs. —————————– September 30, June 30, 2002 2003 ————— ————- Amount % Amount % ——– —— ——- —– Dollar amounts in thousands General and administration expense: Marketing and promotional $994 15.8% $506 7.4% Occupancy expense 695 14.2 198 3.7 Technology 9 0.2 (117) (2.7) Other general and administration 936 12.4 (394) (4.4) ——– —— ——- —– Total general and administration expense $2,634 11.4% $193 0.8% ======== ====== ======= ===== ———————————————————————- </pre>

Total asset management expense for the nine months ended September 30, 2003 decreased $9.3 million or 3% to $270.5 million compared with $279.8 million for the nine months ended September 30, 2002. The decrease was due to lower compensation and benefits and fund administration and servicing costs of $8.2 million and $10.4 million, respectively, partially offset by an increase in general and administration expense of $9.2 million. The decrease in compensation and benefits was attributable to an $18.9 million decrease in incentive compensation expense primarily related to the decline in performance fees on BlackRock’s fixed income hedge fund, which offset a $6.3 million increase in salaries and benefits associated with business growth and a $4.4 million increase due to higher investment returns on Rabbi Trust assets associated with BlackRock’s voluntary and involuntary deferred compensation plans. The decrease in fund administration and servicing costs was due to a $2.8 billion decline in PNC related assets in the BlackRock Funds, the impact of which more than offset an increase in third party closed-end fund servicing costs of $2.2 million.

General and administration expense increased primarily due to increases of $2.4 million in marketing and promotional expense associated with new closed-end fund issuances and existing products, $2.0 million in occupancy costs related to the completion of BlackRock’s new headquarters facility in 2002, $1.8 million associated with foreign currency translation adjustments, $1.5 million due to higher insurance premiums and increased professional service costs attributable to FIN 46 implementation and compliance with information requests in our mutual fund business and $1.4 million in portfolio and data services. General and administration expense rose 11% exclusive of foreign currency translation effects which slightly increased expense by $0.1 million for the first nine months of 2003 while reducing expense by $1.7 million for the comparable period in 2002.

<pre> ———————————————————————- Nine months ended September 30, Variance ——————— —————– 2003 2002 Amount % ———– ——— ——— ——- Dollar amounts in thousands (unaudited) General and administration expense: Marketing and promotional $20,768 $18,328 $2,440 13.3% Occupancy expense 16,611 14,645 1,966 13.4 Technology 12,760 12,796 (36) (0.3) Other general and administration 26,105 21,244 4,861 22.9 ———– ——— ——— ——- Total general and administration expense $76,244 $67,013 $9,231 13.8% =========== ========= ========= ======= ———————————————————————- </pre>

Asset management non-operating income for the quarter ended September 30, 2003 increased $5.7 million to $5.9 million compared with $0.2 million for the quarter ended September 30, 2002. The increase was due to higher interest and dividend income of $2.4 million attributable to increased investments of corporate funds, increased investment income associated with BlackRock’s voluntary and involuntary deferred compensation plans of $2.8 million, increased gains realized on the sale of investments of $0.1 million, and $0.4 million of gains on seed equity trading investments for the new quantitative equity products.

Asset management non-operating income for the nine months ended September 30, 2003 increased $10.5 million to $17.4 million compared with $6.9 million for 2002. The increase primarily reflects higher interest and dividend income of $4.1 million due to increased investments of corporate funds, increased investment income associated with BlackRock’s deferred compensation plans of $4.5 million and $1.3 million of gains on seed equity trading investments for the new quantitative equity products.

The adjustment in BlackRock’s effective tax rate to 38.0% from the previous 38.5% was due to a change in estimated full year taxable income reportable on PNC’s combined tax return.

FIN 46 Implementation

In January 2003, the FASB issued FIN 46, “Consolidation of Variable Interest Entities”. This interpretation, with implementation required for financial reporting periods beginning after June 15, 2003, established new consolidation accounting requirements for off-balance sheet activities conducted through Special Purpose Entities (“SPE”). The standard requires that all SPE’s be designated as either voting interest or variable interest entities (“VIE”) with variable interest entities subject to consolidation if the consolidating entity is either subject to a majority of the risk (greater than 50%) or receives a majority of the rewards of the VIE (the “primary beneficiary”).

While BlackRock is not subject to a majority of the risks of the VIE’s, BlackRock was determined to receive a majority of the rewards exclusively due to the inclusion in the computational methodology for determining primary beneficiary market based fees paid to BlackRock for providing collateral manager services. These fees, which amounted to $3.4 million for the three months ended September 30, 2003, represent a minimal economic interest in the operation of these entities which on a combined basis have total assets of approximately $2.6 billion and which generated net income for the third quarter of approximately $32.0 million.

The CDOs for which BlackRock acts as collateral manager are pooled investment vehicles with a finite life (generally 8 to 12 years) in which equity and debt investors earn a return based on the performance of the underlying assets. BlackRock has no right to the use of fund assets and fund liabilities can only be extinguished from the cash flows on these assets (i.e., non recourse to BlackRock). As a result, BlackRock’s maximum loss exposure to the activities of these VIE’s is limited to its investments in the CDOs which approximated $14.3 million at September 30, 2003 and which represents approximately 5% of the combined equity of these entities.

Minority interest related adjustments will substantially eliminate all of the operating results for these entities except in an instance where fund losses have extinguished subsidiary equity. Under current rules governing consolidation accounting, BlackRock’s consolidated income statement would reflect 100% of such fund losses despite the fact that BlackRock’s loss exposure is limited to its investment. When the fund matures, equity and debt holders would absorb these losses and BlackRock would record a gain equal to all previous losses recognized. The FASB has recently proposed guidance which would limit loss recognition to BlackRock’s investment in the fund. In consolidation, BlackRock has classified limited life equity and mandatorily redeemable preferred stock issued by the CDOs as “borrowings” in accordance with Statement of Financial Accounting Standard (“SFAS”) 150 “Accounting for Certain Financial Instruments with Characteristics of both Liabilities and Equity” which BlackRock adopted effective July 1, 2003.

The adoption of FIN 46 also resulted in BlackRock recording a cumulative effect of accounting change gain as of July 1, 2003 of approximately $139,000, which reflects the difference between the fair value of the assets and liabilities of these entities versus BlackRock’s carrying value.

Finally, BlackRock expects to incur out-of-pocket costs in excess of $1 million to comply with FIN 46 for fiscal 2003. Annual costs for future periods, which will include an increase in staff resources, are expected to be substantially higher.

Consolidated SPE Segment and Consolidated Results

BlackRock’s consolidated SPE segment’s net income was $45,000 for the three months ended September 30, 2003 including a cumulative effect of accounting change gain of $139,000. Total revenue for the three months ended September 30, 2003 was $57.4 million which included $60.8 million of investment income on $2.3 billion of trading investments for the CDOs and an elimination of $3.4 million associated with management fees paid to BlackRock as collateral manager to the funds. Total expense for the three months ended September 30, 2003 amounted to $57.5 million which included $24.0 million of interest expense on $2.4 billion of CDO fund borrowings, $31.0 million of accretion on equity issued by limited life subsidiaries and general and administrative expense of $2.5 million. Income before taxes, minority interest and cumulative effect of accounting change for the three months ended September 30, 2003 resulted in a $94,000 loss.

BlackRock consolidated revenue for the third quarter and nine months ended September 30, 2003 was $213.8 million and $512.3 million, respectively, versus $137.5 million and $447.4 million for the comparable periods in 2002. Total expense for the third quarter and nine months ended September 30, 2003 was $150.3 million and $328.4 million, respectively, versus $81.8 million and $280.3 million for the comparable periods in 2002. The significant increase largely reflects CDO investment income and interest expense as well as accretion of equity issued by limited life subsidiaries which have been consolidated for only the three month period ended September 30, 2003 in accordance with FIN 46. While the adoption of FIN 46 had a minimal impact on net income; BlackRock’s net income margin for the 2003 third quarter of 18.8% represented a substantial decline from the prior year performance of 24.1% due to the significant increase in total revenue.

BlackRock’s condensed consolidated statement of condition exhibited substantial increases due to implementation of FIN 46 with total assets, investments and borrowings increasing by $2.6 billion, $2.3 billion and $2.4 billion, respectively compared to June 30, 2003 reported totals of $0.9 billion, $0.3 billion and $0.

During the third quarter BlackRock completed a one million share repurchase program which was approved by the Board of Directors in 2002. On August 7, 2003 BlackRock received Board of Directors authorization to repurchase up to an additional one million shares. To date BlackRock has repurchased 303,000 shares under the new program. In addition, the Board of Directors declared its first-ever quarterly cash dividend of $0.20 per share of common stock, which was paid September 29, 2003 to shareholders of record at the close of business on September 8, 2003.

Outlook

Based on current conditions, management expects full year 2003 and fourth quarter diluted earnings per share to be in a range of $2.34 – $2.36 and $0.61 – $0.63, respectively. Assuming no significant changes in economic conditions, interest rates or new business activity and resumption of performance fee opportunities for BlackRock’s fixed income hedge fund, management expects full year 2004 diluted earnings per share to be in a range of $2.65 – $2.85.

About BlackRock

BlackRock is one of the largest publicly traded investment management firms in the United States with $293.5 billion of assets under management as of September 30, 2003. BlackRock manages assets on behalf of institutional and individual investors worldwide through a variety of equity, fixed income, liquidity and alternative investment products. In addition, BlackRock provides risk management and investment system services to a growing number of institutional investors under the BlackRock Solutions name. Clients are served from the Company’s headquarters in New York City, as well as offices in Boston, Edinburgh, Hong Kong, San Francisco, Tokyo and Wilmington. BlackRock is majority-owned by The PNC Financial Services Group, Inc. (NYSE: PNC) and by BlackRock employees.

Forward-Looking Statements

This press release, and other statements that BlackRock may make, may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act, with respect to BlackRock’s outlook for full year and third quarter 2003 earnings, fixed income hedge fund investment performance, the impact of FIN 46 on BlackRock’s financial statements, potential new business opportunities, liquidity asset levels and other future financial or business performance, strategies or expectations. Forward-looking statements are typically identified by words or phrases such as “trend,” “potential,” “opportunity,” “pipeline,” “believe,” “comfortable,” “expect,” “current,” “intention,” “estimate,” “position,” “assume,” “outlook,” “continue,” “remain,” “maintain,” “sustain,” “seek,” “achieve,” and similar expressions, or future or conditional verbs such as “will,” “would,” “should,” “could,” “may” or similar expressions.

BlackRock cautions that forward-looking statements are subject to numerous assumptions, risks and uncertainties, which change over time. Forward-looking statements speak only as of the date they are made, and BlackRock assumes no duty to update forward-looking statements. Actual results could differ materially from those anticipated in forward-looking statements and future results could differ materially from historical performance.

In addition to factors previously disclosed in BlackRock’s SEC reports and those identified elsewhere in this press release, the following factors, among others, could cause actual results to differ materially from forward-looking statements or historical performance: (1) the introduction, withdrawal, success and timing of business initiatives and strategies; (2) changes in political, economic or industry conditions, the interest rate environment or financial and capital markets, which could result in changes in demand for products or services or in the value of assets under management; (3) the investment performance of BlackRock’s advised or sponsored investment products and separately managed accounts; (4) the impact of increased competition; (5) the impact of capital improvement projects; (6) the impact of future acquisitions; (7) the unfavorable resolution of legal proceedings; (8) the extent and timing of any share repurchases; (9) the impact, extent and timing of technological changes and the adequacy of intellectual property protection; (10) the impact of legislative and regulatory actions and reforms and regulatory, supervisory or enforcement actions of government agencies relating to BlackRock or PNC; (11) terrorist activities and international hostilities, which may adversely affect the general economy, financial and capital markets, specific industries, and BlackRock; and (12) the ability to attract and retain highly talented professionals.

BlackRock’s Annual Report on Form 10-K for the year ended December 31, 2002 and BlackRock’s subsequent reports filed with the SEC, accessible on the SEC’s website at http://www.sec.gov and on BlackRock’s website at http://www.blackrock.com, discuss these factors in more detail and identify additional factors that can affect forward-looking statements.

“More to Follow”

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PART 1 OF 2, BlackRock, Inc. Reports 19% Increase in Assets Under Management to $293.5 Billion; Third Quarter Diluted E.P.S. Rises 20% to $0.61 Per Share Including Impact of FIN 46

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