This summary is based on the second quarter fiscal 2008 earnings call conducted by BlackRock Inc. (BLK) on July 17, 2008.

Management:

Chairman and CEO: Laurence D. Fink
CFO: Anne Marie Petach
MD and General Counsel: Robert P. Connolly

Key Investor Issues:

- Q2 total revenues rose 26.4% from $1.097 million last year to $1.387 million.
- Half year EPS were $3.87 versus $3.17 same period last year.
- Q2 operating income increased 2% to $405 million from $396 million in Q1 of 2008.

Second-Quarter Financial Highlights:

The quarterly EPS increased from $1.69 to $2.05 for the current year quarter.

- The growth in earnings included a 44% increase in operating income compared with 2007.
- The improvements in operating results were offset partially by lower non-operating income reflecting the effect of declining markets on seed and co-investments and higher net interest expense.

The Q2 operating income increased 44% to $405 million from $282 million in Q2 of 2007.

- The Q2 results included activities related to UAM acquired in the Quellos transaction which closed on October 1, 2007.

The 26% increase in quarterly revenues was a result of several factors.

- The investment advisory and administration base fees of $1.161 million in Q2 rose $210 million or 22% versus $951 million in the year ago quarter.
- The increase was a result of organic growth in AUM across all asset classes and the AUM acquired in the Quellos transaction.
- The current quarter results included $45 million of fees related to AUM acquired in the Quellos transaction

- The performance fees were $57 million compared with $26 million in the quarter last year.
- The increase related to higher performance fees earned on international equity separate accounts and alternative investment products in Q2 of 2008.

- The management advised that Other revenue, which includes BlackRock Solutions and property management fees, was $135 million during the quarter versus $88 million in Q2 of 2007.
- The Q2 BlackRock Solutions revenue increased to $100 million compared with $46 million in Q2 of 2007.
- The increase of 115% reflects additional Aladdin mandates and advisory assignments.

The second quarter operating expenses of $982 million increased $167 million or 21% compared with $815 million in the year ago quarter.

- The employee compensation and benefits increased $143 million.
- The increase was mainly due to higher incentive compensation related to increases in operating income and performance fees, a $38 million increase in salaries and benefits primarily due to increased staff and a $23 million increase in deferred compensation relating to appreciation on assets associated with certain deferred compensation plans, partially offset by gains on investments included in non-operating income.

- The portfolio administration and servicing costs paid to Merrill Lynch and other third parties increased $23 million as a result of higher levels of average AUM across all asset classes.

- The amortization of deferred sales costs increased $5 million due to higher sales of certain share classes of open-ended funds.

- The general and administration expenses decreased $9 million primarily related to a $14 million reduction in closed-end fund launch costs, a $6 million decline in foreign currency re-measurement costs and a $3 million dip in professional services related to MLIM integration costs in 2007.
- These were partly offset by increases in portfolio services and occupancy expenses of $8 million and $6 million respectively.

- The amortization of intangible assets increased $5 million due to an increase in finite-lived management contracts acquired in the Quellos transaction.