BlackRock Holdco 2 8-K BlackRock, Inc. Reports 56% Increase in Net Income for the First Quarter

Exhibit 99.1

Contact:

Paul Audet

212-409-3555

invrel@blackrock.com

BlackRock, Inc. Reports 56% Increase in Net Income for the First Quarter

to $55.2 Million, Diluted Earnings per Share of $0.84 and

Assets Under Management of $321 Billion

New York, April 20, 2004 – BlackRock, Inc. (NYSE:BLK) today reported net income for the first quarter ended March 31, 2004 of $55.2 million, a 56% increase compared with $35.3 million earned in the first quarter of 2003 and a 33% increase compared with $41.4 million earned in the fourth quarter of 2003. Diluted earnings per share for the first quarter were $0.84, a 56% increase compared with $0.54 for the first quarter of 2003 and a 33% increase compared with $0.63 for the fourth quarter of 2003.

As disclosed previously, BlackRock realized a net income benefit of approximately $8.7 million, or $0.13 per share, associated with the resolution of an audit performed by New York State on the Company’s state income tax returns filed from 1998 through 2001. Excluding this benefit, net income for the first quarter approximated $46.5 million, an increase of $11.2 million or 32% compared to the first quarter of 2003 and a $5.2 million or 13% increase compared to the fourth quarter of 2003. Diluted earnings per share for the first quarter, excluding the benefit, were $0.71, representing increases of 31% and 13% from the first and fourth quarters of 2003, respectively.

Operating income of $69.8 million for the first quarter of 2004 increased $15.7 million, or 29%, compared to the first quarter of 2003 and $8.0 million, or 13%, compared to the fourth quarter of 2003. Operating results for the first quarter were characterized by strong growth in recurring revenue and a significant rise in performance fees which was mitigated by a continuing high level of legal and accounting related expenditures and the recognition of an impairment charge on intangible assets associated with closing the long-short equity hedge fund.

Assets under management (“AUM”) increased $11.3 billion or 4% during the quarter and $47.1 billion or 17% year-over-year to $320.7 billion at March 31, 2004. During the quarter, net new business totaled $7.8 billion in all products other than securities lending, which remained volatile and ended the quarter down $1.4 billion. Distribution efforts were strong globally, with $4.8 billion of net new business from U.S. clients and $1.6 billion from international investors. For the twelve-month period ended March 31, 2004, net new business totaled $29.6 billion, including inflows in all client channels and in all products other than international equities. In addition, we continued to capitalize on increased demand for risk management and advisory services, adding seven newBlackRock Solutions^® assignments during the quarter and sixteen new mandates over the past year for a variety of insurance companies, mortgage banks and other financial institutions.

“BlackRock’s operating results for the first quarter were exceptional, with strong contributions from most of our asset management and BlackRock Solutions activities,” commented Laurence D. Fink, Chairman and CEO of BlackRock. “Our portfolio managers have generally done a good job navigating choppy markets to achieve competitive performance which, of course, is key for our future new business efforts.”

Mr. Fink continued, “With signs of strong economic growth and rising interest rates, many assume bond managers will falter as net asset values decline. Despite the short term effect on assets, I believe that BlackRock’s opportunities have never been greater. Our pipeline is stronger and more diversified than ever, and we are well positioned to benefit from pension plan rebalancing into bonds that typically occurs as rates rise. Most importantly, our employees are working extraordinarily hard to serve our clients and to enhance and expand BlackRock’s platform.”

BlackRock, Inc.

First Quarter 2004 Earnings Release

First Quarter Highlights

v Fixed income AUM increased $12.4 billion to $226.8 billion at March 31, 2004, led by continued strong growth across products, including $5.4 billion in targeted duration accounts and $2.1 billion in global bond mandates. Net new business totaled $7.7 billion, with $3.7 billion of fundings from pension plans and other tax-exempt investors, $3.6 billion from insurance companies and other taxable institutions, and $453 million from private client/fund investors. Investment performance reflected the market’s lack of conviction regarding the strength of the economy, Fed direction and geopolitical risk. For example, our core bond fund underperformed its benchmark for the quarter, but outperformed substantially through mid April (see performance notes).

v Liquidity assets were $73.8 billion at quarter-end, down less than 1% versus year-end levels. Securities lending outflows of $1.4 billion overshadowed $866 million of inflows in money market funds and other liquidity separate accounts. During the quarter, we continued to benefit from enhanced cross-selling efforts and increased our market share among institutional money market fund managers. Performance on our money market funds remained competitive; however, we remain cautious on liquidity flows in this market environment.

v Equity assets were $13.8 billion at March 31, 2004. During the quarter, domestic equity AUM increased $710 million, which was almost fully offset by a decline of $668 million in international equity accounts. New business in domestic equities included $533 million of net inflows in small/mid cap value and growth portfolios and in a new closed-end fund managed by our quantitative equity team. Equity performance was very strong, with ten of our eleven domestic equity funds and three of our five international equity funds ranked in the top Lipper quartile for the quarter ended March 31, 2004 (see performance notes).

v Alternative investment products ended the quarter at $6.3 billion under management, with $411 million of net inflows in our fixed income hedge funds and fund of fund products overwhelmed by two items. Specifically, asset flows reflected a downward adjustment of $704 million to reflect equity, rather than total assets, held in Anthracite, a real estate investment trust managed by BlackRock. In addition, the liquidation of the Cyllenius funds resulted in $163 million of outflows. Notwithstanding these two items, we have strong momentum in our fixed income, municipal, high yield, real estate and fund of fund strategies.

v BlackRock Solutions continued to capitalize on increased demand for a variety of risk management and outsourcing services. During the quarter, we added seven new assignments from existing and new clients. In addition, we have two system implementations in process and several potential mandates under discussion. Revenue on these products was up more than 30% versus the first quarter of 2003.

v Our potential new business pipeline remains exceptionally robust, with, as of quarter end, $6.0 billion of wins to be funded and over 400 searches in process for a variety of fixed income and equity products. In addition, pension plan rebalancing into bonds, which led to over $350 million of net inflows during the first quarter, is likely to gain momentum if interest rates continue to rise. In the past, these practices have contributed to significant outflows in periods of falling interest rates and considerable inflows during periods of rising rates.

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BlackRock, Inc.

First Quarter 2004 Earnings Release

Total revenue for the quarter ended March 31, 2004 increased $39.1 million, or 27%, to $181.8 million compared to $142.8 million for the quarter ended March 31, 2003. Separate account revenue increased by $26.2 million, or 34%, mutual funds revenue increased by $7.7 million, or 16%, and other income increased by $5.1 million, or 31%, compared with the quarter ended March 31, 2003. The increase in separate account revenue consisted of a $13.6 million, or 18%, increase in separate account base fees driven by a $37.6 billion, or 19%, increase in AUM, concentrated in fixed income mandates, and an increase in performance fees of $12.7 million to $15.8 million compared to $3.1 million earned during the first quarter of 2003. The increase in performance fees was primarily related to fees earned from a collateralized debt obligation (“CDO”), the Company’s long-short equity hedge fund and several separate accounts. The CDO performance fee, which totaled $7.9 million, represents a portion of returns realized by its investors since the CDO’s inception in January 2001. Mutual fund revenue increased primarily due to $2.5 billion of new closed-end fund assets raised since March 31, 2003, and a $2.6 million increase inBlackRock Fundfees driven by a $1.3 billion increase in average assets and a $1.5 billion favorable shift in the asset mix from liquidity to fixed income. Other income increased primarily due to strong sales inBlackRock Solutionsproducts and services.

	Three months ended						Variance vs.
	March 31,				December 31,		March 31, 2003					December 31, 2003
	2004		2003		2003		Amount			%		Amount			%
(Dollar amounts in thousands)
Mutual funds revenue
BlackRock Funds	$	18,782	$	16,187	$	18,865	$	2,595		16.0	%		($83	)	(0.4	%)
Closed-end Funds		16,789		11,312		15,804		5,477		48.4			985		6.2
BlackRock Liquidity Funds		20,612		20,999		21,486		(387	)	(1.8	)		(874	)	(4.1	)
STIF		263		242		263		21		8.7			—		0.0
Total mutual funds revenue		56,446		48,740		56,418		7,706		15.8			28		0.0
Separate accounts revenue
Separate accounts base fees		88,066		74,514		83,059		13,552		18.2			5,007		6.0
Separate accounts performance fees		15,806		3,111		1,800		12,695		408.1			14,006		778.1
Total separate accounts revenue		103,872		77,625		84,859		26,247		33.8			19,013		22.4
Total investment advisory and administration fees		160,318		126,365		141,277		33,953		26.9			19,041		13.5
Other income		21,505		16,386		19,934		5,119		31.2			1,571		7.9
Total revenue	$	181,823	$	142,751	$	161,211	$	39,072		27.4	%	$	20,612		12.8	%

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BlackRock, Inc.

First Quarter 2004 Earnings Release

Revenue growth of $20.6 million, or 13%, in the first quarter of 2004 compared to fourth quarter 2003 largely reflects an increase in separate account performance fees of $14.0 million primarily related to fees earned on alternative investment products, an increase in separate account base fees of $5.0 million or 6% due to a $9.6 billion increase in AUM, and a $1.6 million increase in other income entirely attributable to a performance fee earned on a large full serviceBlackRock Solutions client.

Total expense for the quarter ended March 31, 2004 increased $23.4 million, or 26%, to $112.1 million compared to $88.7 million during the quarter ended March 31, 2003. The increase in total expense during the quarter primarily reflects increases of $10.7 million in employee compensation and benefits, $6.2 million in general and administration expense, and the recognition of an impairment on the Company’s intangible assets of $6.1 million related to the liquidation of the Cyllenius funds.

The increase in employee compensation and benefits was largely due to an increase of $6.4 million in incentive compensation expense primarily related to higher alternative product performance fees, costs associated with the December 2003 grants of restricted shares to employees and increases in salaries and benefits to support business growth. The increase in general and administration expense primarily reflects $2.2 million in subadvisory fees related to a performance fee earned on a CDO, increased professional fees of $1.5 million for legal and accounting services, increased marketing and promotional costs of $1.5 million for closed-end fund launches and institutional liquidity marketing activities, a $0.6 million rise in insurance costs and $0.6 million of foreign currency remeasurement expense due to the decline of the U.S. dollar. Fund administration and servicing costs paid to third parties increased $2.3 million during the first quarter of 2004 due to a $1.2 million increase in transfer agent services related to theBlackRock Funds and a $1.1 million rise in third party servicing costs associated with closed-end fund launches. The increase in third party fund administration and servicing costs was largely offset by a decline in affiliated fund administration and servicing costs associated with the restructuring of BlackRock’s co-administration agreements with PFPC, Inc., a PNC subsidiary, related to services provided to theBlackRock Liquidity Fundsand BlackRock Funds. During the first quarter of 2004, the portfolio manager of BlackRock’s long-short equity hedge fund resigned from the firm. As a result, BlackRock commenced an orderly liquidation of the Cyllenius funds and recognized a $6.1 million impairment charge representing the carrying value of the funds’ acquired management contract. After adjusting for the benefit of a $2.7 million performance fee, the funds’ liquidation resulted in an after-tax loss of approximately $2 million.

	Three months ended						Variance vs.
	March 31,				December 31,		March 31, 2003					December 31, 2003
	2004		2003		2003		Amount			%		Amount		%
(Dollar amounts in thousands)
General and administration expense:
Marketing and promotional	$	8,206	$	6,667	$	7,372	$	1,539		23.1	%	$834		11.3	%
Occupancy		5,651		5,612		5,422		39		0.7		229		4.2
Technology		4,372		4,579		4,853		(207	)	(4.5	)	(481	)	(9.9	)
Other general and administration		13,070		8,251		13,442		4,819		58.4		(372	)	(2.8	)
Total general and administration expense	$	31,299	$	25,109	$	31,089	$	6,190		24.7	%	$210		0.7	%

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BlackRock, Inc.

First Quarter 2004 Earnings Release

The rise in expense of $12.6 million or 13% during the first quarter of 2004 compared to the fourth quarter of 2003 primarily consists of a $7.3 million increase in employee compensation and benefits and a $6.1 million impairment of the Company’s intangible assets, partially offset by a $1.6 million decrease in affiliated fund administration and servicing costs. The increase in employee compensation and benefits was primarily attributable to incentive compensation on alternative product performance fees, a reversal of deferred compensation during the fourth quarter of 2003 and an increase in salaries and benefits associated with higher staffing levels. The decrease in affiliated fund administration and servicing costs primarily reflected the previously-discussed restructuring of theBlackRock Liquidity Funds andBlackRock Funds co-administration agreements with PFPC, Inc.

Non-operating income for the three months ended March 31, 2004 increased $2.4 million compared to the three months ended March 31, 2003 largely due to $2.9 million in distributions from alternative investment product seed investments, partially offset by $0.8 million in interest expense related to the Company’s obligation to purchase a subsidiary’s minority interest in 2008. Under accounting guidance, fluctuations in the settlement amount of the related obligation, which is driven by the subsidiary’s revenue, will be reflected in the Company’s statement of operations as interest expense.

Non-operating income growth from the fourth quarter of 2003 primarily represents a $2.8 million distribution from a CDO investment during the first quarter of 2004, partially offset by decreased interest and dividend income of $1.0 million resulting from lower levels of corporate investments and a $1.0 million impairment on a CDO investment.

LTIP Status

Subsequent to March 31, 2004, the Company’s common stock has, at times, traded in excess of $62 per share. Under the terms of BlackRock’s Long-Term Retention and Incentive Plan (“LTIP”), if the Company’s average closing stock price remains above $62 (subject to stockholder approval) for a continuous three month period subsequent to December 31, 2004, up to $240 million of compensation awards will vest to employees. Assuming the LTIP vests by March 31, 2005, the Company will record a one-time charge of approximately $98 million, net of tax, or $1.50 per diluted share, and quarterly expense of approximately $8 million, net of tax, or $0.12 per diluted share, through December 31, 2006, the end of the plan’s service period. If the vesting date is later than March 31, 2005, the one-time charge will increase in an amount equal to the pro-rata portion of the service period completed. If the plan vests, PNC will fund $200 million of the plan obligation through the surrender of up to 4 million BlackRock shares in the first quarter of 2007 with employees receiving shares equal to their awards which can be put back to BlackRock. As a result, the economic impact to BlackRock’s earnings per share, based on a March 31, 2005 vesting, would be $0.25 per diluted share in the first quarter of 2005 and $0.02 per diluted share per quarter thereafter through December 31, 2006.

Outlook

Based on current conditions, which assumes no significant changes in economic activity, interest rates or new business momentum, management expects full year and second quarter 2004 diluted earnings per share to be in a range of $2.86—$3.06 and $0.69—$0.71, respectively.

Performance Notes

Past performance is no guarantee of future results.

Mutual fund performance data assumes the reinvestment of dividends and capital gains distributions and reflects the performance of the Institutional Class with the exception of the BlackRock Funds Core Bond Total Return Portfolio, which reflects the performance of the BlackRock Shares class. BlackRock waives fees, without which performance would be lower. Investments in BlackRock Funds are neither insured nor guaranteed by the U.S. government. Relative peer group performance is based on quartiles from Lipper Inc. Lipper rankings are based on total returns with dividends and distributions reinvested and do not reflect sales

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BlackRock, Inc.

First Quarter 2004 Earnings Release

charges. Funds with returns among the top 25% of a peer group of funds with comparable objectives are in the first quartile.

The BlackRock Funds Core Bond Total Return Portfolio benchmark is the Lehman Brothers U.S. Aggregate Index.

Equity Portfolios of BlackRock Funds: The Small Cap Core Equity and Small Cap Value Equity Portfolios are in the Small Cap Core Lipper peer group. The Select Equity, Large Cap Growth Equity and Large Cap Value Equity Portfolios are in the Large Cap Core, Large Cap Growth and Large Cap Value Lipper peer groups, respectively. The Index Equity Portfolio is in the S&P 500 Index Objective Lipper peer group. The Mid-Cap Growth Equity, Mid-Cap Value Equity and Small Cap Growth Equity Portfolios are in the Mid Cap Growth, Mid Cap Value and Small Cap Growth Lipper peer groups, respectively. The Balanced Portfolio is in the Balanced Lipper peer group. The International Equity, Global Science & Technology Opportunities and Asia Pacific Equity Portfolios are in the International, Science & Technology and Pacific Region Lipper peer groups, respectively.

About BlackRock

BlackRock is one of the largest publicly traded investment management firms in the United States with approximately $321 billion of assets under management as of March 31, 2004. 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 theBlackRock 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 second quarter 2004 earnings, 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,” “pursue,” “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 and does not undertake to update forward-looking statements. Actual results could differ materially from those anticipated in forward-looking statements and future results could differ materially from historical performance.

In addition to factors previously disclosed in BlackRock’s Securities and Exchange Commission (“SEC”) reports and those identified elsewhere in this press release, forward-looking statements are subject, among others, to the following risks and uncertainties that could cause actual results of future events 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 or of BlackRock’s investments; (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 and divestitures; (7) the unfavorable resolution of legal proceedings;

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BlackRock, Inc.

First Quarter 2004 Earnings Release

(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; (12) the ability to attract and retain highly talented professionals; (13) fluctuations in foreign currency exchange rates, which may adversely affect the value of advisory fees earned by BlackRock; and (14) the impact of changes to tax legislation and, generally, the tax position of the Company.

BlackRock’s Annual Report on Form 10-K for the year ended December 31, 2003 and BlackRock’s subsequent reports filed with the SEC, accessible on the SEC’s website athttp://www.sec.gov and on BlackRock’s website athttp://www.blackrock.com, discuss these factors in more detail and identify additional factors that can affect forward-looking statements.

# # #

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BlackRock, Inc.

Financial Highlights

(Dollar amounts in thousands, except share data)

(unaudited)

	Three months ended									Variance vs.
	March 31,						December 31,			March 31, 2003					December 31, 2003
	2004			2003			2003			Amount			%		Amount		%
Total revenue	$	181,823		$	142,751		$	161,211		$	39,072		27	%	$	20,612	13	%
Total expense	$	112,056		$	88,685		$	99,457		$	23,371		26	%	$	12,599	13	%
Operating income	$	69,767		$	54,066		$	61,754		$	15,701		29	%	$	8,013	13	%
Net income	$	55,207		$	35,320		$	41,355		$	19,887		56	%	$	13,852	33	%
Diluted earnings per share	$	0.84		$	0.54		$	0.63		$	0.30		56	%	$	0.21	33	%
Average diluted shares outstanding		65,807,605			65,867,032			65,634,589			(59,427	)	0	%		173,016	0	%
Operating margin(a)		40.2	%		40.1	%		40.7	%
Assets under management ($ in millions)	$	320,672		$	273,599		$	309,356		$	47,073		17	%	$	11,316	4	%

(a) Operating income divided by total revenue less fund administration and servicing costs. Computations for all periods presented include affiliated and non-affiliated fund administration and servicing expense reported as a separate income statement line item and are derived from the Company’s consolidated financial statements, as follows:

	Three months ended
	March 31,						December 31,
	2004			2003			2003
Operating income, as reported	$	69,767		$	54,066		$	61,754
Revenue, as reported		181,823			142,751			161,211
Less: fund administration and servicing costs		(8,360	)		(7,958	)		(9,393	)
Revenue used for operating margin measurement		173,463			134,793			151,818
Operating margin		38.4	%		37.9	%		38.3	%
Operating margin, as reported		40.2	%		40.1	%		40.7	%

We believe that operating margin, as reported, is an effective indicator of management’s ability to effectively employ the Company’s resources. Fund administration and servicing costs have been excluded from operating margin because these costs are a fixed, asset-based expense which can fluctuate based on the discretion of a third party.

8

BlackRock, Inc.

Condensed Consolidated Statements of Income

(Dollar amounts in thousands, except share data)

(unaudited)

	Three months ended									Variance vs.
	March 31,						December 31,			March 31, 2003					December 31, 2003
	2004			2003			2003			Amount			Percent		Amount			Percent
Revenue
Investment advisory and administration fees
Mutual funds	$	56,446		$	48,740		$	56,418		$	7,706		15.8	%	$	28		0.0	%
Separate accounts		103,872			77,625			84,859			26,247		33.8			19,013		22.4
Total investment advisory and administration fees		160,318			126,365			141,277			33,953		26.9			19,041		13.5
Other income		21,505			16,386			19,934			5,119		31.2			1,571		7.9
Total revenue		181,823			142,751			161,211			39,072		27.4			20,612		12.8
Expense
Employee compensation and benefits		66,069			55,386			58,744			10,683		19.3			7,325		12.5
Fund administration and servicing costs
Affiliates		5,068			6,943			6,699			(1,875	)	(27.0	)		(1,631	)	(24.3	)
Other		3,292			1,015			2,694			2,277		224.3			598		22.2
General and administration		31,299			25,109			31,089			6,190		24.7			210		0.7
Amortization of intangible assets		231			232			231			(1	)	(0.4	)		—		—
Impairment of intangible assets		6,097			—			—			6,097		NM			6,097		NM
Total expense		112,056			88,685			99,457			23,371		26.4			12,599		12.7
Operating income		69,767			54,066			61,754			15,701		29.0			8,013		13.0
Non-operating income (expense)
Investment income		6,897			3,529			5,497			3,368		95.4			1,400		25.5
Interest expense		(1,084	)		(164	)		(252	)		(920	)	561.0			(832	)	330.2
		5,813			3,365			5,245			2,448		72.7			568		10.8
Income before income taxes and minority interest		75,580			57,431			66,999			18,149		31.6			8,581		12.8
Income taxes		20,089			22,111			25,347			(2,022	)	(9.1	)		(5,258	)	(20.7	)
Income before minority interest		55,491			35,320			41,652			20,171		57.1			13,839		33.2
Minority interest		284			—			297			284		NM			(13	)	(4.4	)
Net income	$	55,207		$	35,320		$	41,355		$	19,887		56.3	%	$	13,852		33.5	%
Weighted-average shares outstanding
Basic		63,775,783			65,056,537			64,072,611			(1,280,754	)	-2.0	%		(296,828	)	-0.5	%
Diluted		65,807,605			65,867,032			65,634,589			(59,427	)	-0.1	%		173,016		0.3	%
Earnings per share
Basic	$	0.87		$	0.54		$	0.65		$	0.33		61.1	%	$	0.22		33.8	%
Diluted	$	0.84		$	0.54		$	0.63		$	0.30		55.6	%	$	0.21		33.3	%

NM = Not meaningful

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TABLE 3

BlackRock, Inc.

Condensed Consolidated Statements of Financial Condition

(Dollar amounts in thousands)

(unaudited)

	March 31, 2004		December 31, 2003
Assets
Cash and cash equivalents	$	301,109	$	315,941
Accounts receivable		147,170		127,316
Investments		177,288		234,923
Property and equipment, net		87,716		87,006
Intangible assets, net		185,824		192,079
Other assets		10,349		9,958
Total assets	$	909,456	$	967,223
Liabilities
Accrued compensation	$	88,508	$	172,447
Accounts payable and accrued liabilities		74,831		60,098
Acquired management contract obligation		5,736		5,736
Other liabilities		13,130		14,395
Total liabilities		182,205		252,676
Minority interest		4,300		1,239
Stockholders’ equity		722,951		713,308
Total liabilities, minority interest and stockholders’ equity	$	909,456	$	967,223

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TABLE 4

BlackRock, Inc.

Condensed Consolidated Statements of Cash Flows

(Dollar amounts in thousands)

(unaudited)

	Three months ended March 31,
	2004			2003
Cash flows from operating activities
Net income	$	55,207		$	35,320
Adjustments to reconcile net income to net cash used in operating activities:
Depreciation and amortization		4,949			5,295
Impairment of intangible assets		6,097			—
Minority interest		284			—
Stock-based compensation		4,269			2,614
Deferred income taxes		6,467			1,101
Tax impact of stock-based compensation		(407	)		4,167
Purchase of investments, trading, net		(10,281	)		(17,836	)
Net gain on investments		(1,627	)		(248	)
Changes in operating assets and liabilities:
Increase in accounts receivable		(20,926	)		(1,231	)
Increase in receivable from affiliates		(51	)		(226	)
Decrease (increase) in other assets		470			(558	)
Decrease in accrued compensation		(83,939	)		(75,071	)
Increase in accounts payable and accrued liabilities		6,880			16,866
(Decrease) increase in other liabilities		(1,265	)		1,160
Cash used in operating activities		(33,873	)		(28,647	)
Cash flows from investing activities
Purchase of property and equipment		(4,586	)		(3,355	)
Purchase of investments		(10,059	)		(25,660	)
Sale of investments		76,180			8,292
Deemed cash contribution upon consolidation of VIE		6,412			—
Acquisition of business, net of cash acquired		(73	)		(260	)
Cash provided by (used in) investing activities		67,874			(20,983	)
Cash flows from financing activities
Issuance of class A common stock		—			562
Dividends paid		(15,906	)		—
Dividends paid to minority interest holders		(110	)		—
Purchase of treasury stock		(40,427	)		(16,463	)
Reissuance of treasury stock		6,644			1,866
Cash used in financing activities		(49,799	)		(14,035	)
Effect of exchange rate changes on cash and cash equivalents		966			(355	)
Net decrease in cash and cash equivalents		(14,832	)		(64,020	)
Cash and cash equivalents, beginning of period		315,941			255,234
Cash and cash equivalents, end of period	$	301,109		$	191,214

11

TABLE 5

BlackRock, Inc.

Assets Under Management

(Dollar amounts in millions)

(unaudited)

	March 31,				December 31,
	2004		2003		2003
All Accounts
Fixed income	$	226,797	$	188,058	$	214,356
Liquidity		73,769		67,978		74,345
Equity		13,764		12,165		13,721
Alternative investment products		6,342		5,398		6,934
Total	$	320,672	$	273,599	$	309,356
Separate Accounts
Fixed income	$	202,055	$	167,778	$	190,432
Liquidity		6,304		6,040		5,855
Liquidity-Securities lending		8,479		6,344		9,925
Equity		9,003		8,995		9,443
Alternative investment products		6,342		5,398		6,934
Subtotal		232,183		194,555		222,589
Mutual Funds
Fixed income		24,742		20,280		23,924
Liquidity		58,986		55,594		58,565
Equity		4,761		3,170		4,278
Subtotal		88,489		79,044		86,767
Total	$	320,672	$	273,599	$	309,356

Component Changes in Assets Under Management

(Dollar amounts in millions)

(unaudited)

	Period ended March 31,
	2004		2003
All Accounts
Beginning assets under management	$	309,356	$	272,841
Net subscriptions (redemptions)		6,340		(788	)
Market appreciation		4,976		1,546
Ending assets under management	$	320,672	$	273,599
Separate Accounts
Beginning assets under management	$	222,589	$	183,513
Net subscriptions		4,971		9,521
Market appreciation		4,623		1,521
Ending assets under management		232,183		194,555
Mutual Funds
Beginning assets under management		86,767		89,328
Net subscriptions (redemptions)		1,369		(10,309	)
Market appreciation		353		25
Ending assets under management		88,489		79,044
Total	$	320,672	$	273,599

12

BlackRock, Inc.

Assets Under Management

Quarterly Trend

(Dollar amounts in millions)

(unaudited)

	Quarter Ended
	2003												2004
	March 31			June 30			September 30			December 31			March 31
Separate Accounts
Fixed Income
Beginning assets under management	$	156,574		$	167,778		$	174,480		$	178,390		$	190,432
Net subscriptions		8,889			1,682			3,700			9,842			7,141
Market appreciation		2,315			5,020			210			2,200			4,482
Ending assets under management		167,778			174,480			178,390			190,432			202,055
Liquidity
Beginning assets under management		5,491			6,040			5,366			5,707			5,855
Net subscriptions (redemptions)		541			(677	)		328			135			446
Market appreciation		8			3			13			13			3
Ending assets under management		6,040			5,366			5,707			5,855			6,304
Liquidity-Securities lending
Beginning assets under management		6,433			6,344			8,374			9,996			9,925
Net subscriptions (redemptions)		(89	)		2,030			1,622			(71	)		(1,446	)
Ending assets under management		6,344			8,374			9,996			9,925			8,479
Equity
Beginning assets under management		9,736			8,995			9,105			9,143			9,443
Net subscriptions (redemptions)		174			(1,526	)		(334	)		(1,234	)		(684	)
Market appreciation (depreciation)		(915	)		1,636			372			1,534			244
Ending assets under management		8,995			9,105			9,143			9,443			9,003
Alternative investment products
Beginning assets under management		5,279			5,398			6,352			6,676			6,934
Net subscriptions (redemptions)		6			900			385			237			(486	)
Market appreciation (depreciation)		113			54			(61	)		21			(106	)
Ending assets under management		5,398			6,352			6,676			6,934			6,342
Total Separate Accounts
Beginning assets under management		183,513			194,555			203,677			209,912			222,589
Net subscriptions		9,521			2,409			5,701			8,909			4,971
Market appreciation		1,521			6,713			534			3,768			4,623
Ending assets under management	$	194,555		$	203,677		$	209,912		$	222,589		$	232,183
Mutual Funds
Fixed Income
Beginning assets under management	$	19,012		$	20,280		$	21,480		$	22,974		$	23,924
Net subscriptions		1,104			788			1,426			977			598
Market appreciation (depreciation)		164			412			68			(27	)		220
Ending assets under management		20,280			21,480			22,974			23,924			24,742
Liquidity
Beginning assets under management		66,588			55,594			57,845			57,334			58,565
Net subscriptions (redemptions)		(10,995	)		2,247			(512	)		1,225			420
Market appreciation		1			4			1			6			1
Ending assets under management		55,594			57,845			57,334			58,565			58,986
Equity
Beginning assets under management		3,728			3,170			3,307			3,281			4,278
Net subscriptions (redemptions)		(418	)		(346	)		(147	)		579			351
Market appreciation (depreciation)		(140	)		483			121			418			132
Ending assets under management		3,170			3,307			3,281			4,278			4,761
Total Mutual Funds
Beginning assets under management		89,328			79,044			82,632			83,589			86,767
Net subscriptions (redemptions)		(10,309	)		2,689			767			2,781			1,369
Market appreciation		25			899			190			397			353
Ending assets under management	$	79,044		$	82,632		$	83,589		$	86,767		$	88,489

13

BlackRock, Inc.

Assets Under Management

Quarterly Trend

(Dollar amounts in millions)

(unaudited)

	Quarter Ended
	2003												2004
	March 31			June 30			September 30			December 31			March 31
Mutual Funds
BlackRock Funds
Beginning assets under management	$	18,115		$	18,013		$	18,410		$	18,044		$	18,354
Net subscriptions (redemptions)		18			(213	)		(385	)		57			427
Market appreciation (depreciation)		(120	)		610			19			253			204
Ending assets under management		18,013			18,410			18,044			18,354			18,985
BlackRock Global Series
Beginning assets under management		211			500			589			794			838
Net subscriptions (redemptions)		287			44			193			(3	)		181
Market appreciation		2			45			12			47			7
Ending assets under management		500			589			794			838			1,026
BlackRock Liquidity Funds
Beginning assets under management		59,576			48,489			51,163			51,078			52,870
Net subscriptions (redemptions)		(11,087	)		2,674			(85	)		1,792			289
Ending assets under management		48,489			51,163			51,078			52,870			53,159
Closed End
Beginning assets under management		10,771			11,294			11,723			12,920			13,961
Net subscriptions		380			185			1,038			944			449
Market appreciation		143			244			159			97			142
Ending assets under management		11,294			11,723			12,920			13,961			14,552
Short Term Investment Funds (STIF)
Beginning assets under management		655			748			747			753			744
Net subscriptions (redemptions)		93			(1	)		6			(9	)		23
Ending assets under management		748			747			753			744			767
Total Mutual Funds
Beginning assets under management		89,328			79,044			82,632			83,589			86,767
Net subscriptions (redemptions)		(10,309	)		2,689			767			2,781			1,369
Market appreciation		25			899			190			397			353
Ending assets under management	$	79,044		$	82,632		$	83,589		$	86,767		$	88,489

14