Merrill Lynch Acquires Energy Trading Ops of Entergy-Koch

Merrill Lynch & Co. has entered into a definitive agreement to acquire the energy trading businesses of Entergy-Koch, LP, a venture of Entergy Corporation and privately-owned Koch Energy, Inc., a subsidiary of Koch Industries, Inc. EKLP retains ownership of gas pipeline and storage assets.

The transaction will position Merrill Lynch as a leader in energy trading, expanding the firm's product offering to institutional investor and corporate clients.

To date, EKLP has focused its trading activities primarily on natural gas, electricity and weather-related contracts. Merrill Lynch anticipates making future investments to expand the business into other aspects of energy trading.

The transaction is expected to close in the fourth quarter. Upon closing, the acquired energy trading business will operate as the Global Commodities group, a wholly owned unit within Global Markets & Investment Banking and current Entergy-Koch Trading management will continue to run the integrated business. The transaction is expected to be accretive to Merrill Lynch's 2005 earnings and earnings per share without assuming any synergies.

In addition, EKLP has announced its intent to initiate a competitive process to sell Gulf South Pipeline Company, LP, the gas transportation and storage business that is not included in this transaction.