Contact:

Kathleen Baum

212-810-5429

Brian Beades

212-810-5596

invrel@blackrock.com

BlackRock Reports Third Quarter Diluted EPS of $0.92 per Share;

Assets Under Management Rise to $427.8 Billion.

New York, October 19, 2005 - BlackRock, Inc. (NYSE:BLK) today reported net income for the quarter ended September 30, 2005 of $61.1 million, or $0.92 per diluted share. That compares to a net loss of $9.8 million, or $0.15 per diluted share, for the third quarter of 2004, which included an after-tax charge of $57.1 million or $0.87 per diluted share associated with initial expense recognition for the BlackRock, Inc. 2002 Long-Term Retention and Incentive Plan (LTIP). Net income and diluted earnings per share in the third quarter were approximately 15% higher than in the second quarter of 2005 when the firm reported net income of $53.3 million and diluted earnings per share of $0.80. Third quarter earnings were impacted by a number of business factors, including higher performance fees on alternative products, increased non-operating income from investment appreciation (of which $8.2 million was offset by higher compensation costs), and the recognition of over $5 million of expense associated with the launch of a $1 billion closed-end fund.

On an adjusted basis (See Table 1), diluted earnings per share in the third quarter 2005 were $1.03, as compared to $0.56 in the same quarter of 2004, and were 13% above the $0.91 in the second quarter 2005. Diluted earnings per share, as adjusted, exclude the portion of the firm’s LTIP expense to be funded through a capital contribution of BlackRock, Inc. common stock by The PNC Financial Services Group, Inc.

“BlackRock’s third quarter results reflected continued strong new business momentum globally and our ability to capitalize on the increased diversification of our platform. Importantly, investment performance remained competitive in the face of challenging markets, which is a testament to our investment professionals and disciplined processes,” commented Laurence D. Fink, Chairman and CEO of BlackRock. “We are fortunate to have a deep base of talented and dedicated employees, and delivering their capabilities to our clients is ultimately what most differentiates BlackRock. During the quarter, we announced several organizational changes to streamline coordination of our alternatives efforts, strengthen our focus on clients and opportunities outside of the U.S., and better support the growth and evolution of our business. I believe that these enhancements will enable our team to more fully serve our clients, to most effectively capitalize on our substantial opportunities, and to expand our franchise worldwide.”

For the nine months ended September 30, 2005, net income and diluted earnings per share were $161.0 million and $2.41, respectively, compared to $93.4 million and $1.42 earned in the nine months ended September 30, 2004. Net income and diluted earnings per share for the nine months ended September 30, 2005, as adjusted, were $189.0 million and $2.83, respectively, compared to $130.0 million and $1.98 for the nine months ended September 30, 2004 (See Table 1).

Assets under management (AUM) increased by $13.4 billion, or 3%, during the quarter to $427.8 billion at September 30, 2005. Net new business in the third quarter was $10.7 billion, as the firm benefited from inflows in all asset classes and in all client channels. BlackRock Solutions and advisory services continued to achieve strong growth with eight net new assignments added during the quarter. For the twelve months ended September 30, 2005, AUM increased $104.4 billion, or 32%, driven principally by $39.1 billion of net new business and $50.0 billion of assets acquired with SSR Holdings, Inc. (SSR).

BlackRock, Inc.

Third Quarter 2005 Earnings Release

Third Quarter Business Highlights

• Net new business totaled $10.7 billion in the third quarter, with net inflows across products and client channels globally. Continued strong demand worldwide resulted in net new fundings of $7.1 billion from U.S. investors and $3.6 billion from non-U.S. clients. Flows were favorable in all client channels, including $5.4 billion from pension plans and other tax-exempt investors, $3.0 billion from insurance companies and taxable institutions, $1.4 billion from institutional cash management investors and $871 million from private clients and mutual fund investors.

• Fixed income assets increased to $290 billion at September 30, 2005, supported by $6.8 billion in net new business. We benefited from net inflows across products including $2.1 billion in core, $1.9 billion in global and $1.4 billion in targeted duration mandates. New business from U.S. and non-U.S. clients was $4.1 billion and $2.7 billion, respectively, including strong net inflows in all institutional client channels. Investment performance remained competitive, with 94% or more of composites outperforming their benchmarks and two-thirds or more of taxable bond fund assets ranked in the top two Lipper quartiles for the quarter, year-to-date, 1, 3 and 5-year periods ended September 30, 2005.

• Cash management (liquidity) AUM increased $1.5 billion to $76.7 billion at September 30, 2005. Net inflows in institutional money market funds and separate accounts were $3.2 billion during the quarter, while securities lending portfolios experienced $1.7 billion of net outflows. Investment performance benefited from portfolio positioning that anticipated continued tightening by the Federal Reserve. For the quarter, year-to-date, 1, 3, and 5-year periods ended September 30, 2005, 98% or more of BlackRock’s institutional money market fund assets were ranked in the top quartile of their Lipper peer groups.

• Equity assets ended the quarter at $35.6 billion, up $3.2 billion since second quarter-end. During the quarter, we added $993 million in new closed-end fund assets and had $248 million of net inflows in products other than SSR-related portfolios. We continue to see increased institutional interest in our equity capabilities, including several wins that had not funded by quarter-end. Investment performance remained strong, with over 75% of our institutional composites outperforming their benchmarks and 60% or more of our equity mutual funds ranked in the top two Lipper quartiles for the quarter, year-to-date and 1-year periods ended September 30, 2005.

• Alternative investment AUM rose 12% to $25.5 billion at September 30, 2005, with net new business of $1.7 billion across our increasingly diversified product platform. Specifically, we added $925 million in structured products, including the issuance of two new collateralized debt obligations. We also added $460 million in real estate portfolios, driven principally by strong interest in our core real estate equity fund and a new growth and income product. Lastly, we had net inflows of $307 million across our hedge funds and other alternative products. Investment performance was favorable across products, and we continue to benefit from our product development efforts and strong client demand for alternative investments.

2

BlackRock, Inc.

Third Quarter 2005 Earnings Release

• We continued to achieve strong growth in our BlackRock Solutions and related products, adding six new clients and eight net new assignments during the third quarter. These included three net new mandates in investment accounting, which is offered in conjunction with investment management services, and five net new risk management and advisory assignments. In addition, we began implementation on the two system outsourcing mandates added in the second quarter. Strong interest from institutions in the U.S., Europe and Asia is supporting a robust pipeline of opportunities for BlackRock Solutions globally.

• Since quarter end, $15.7 billion of wins have funded or are to be funded, including $8.4 billion of additional assets to be managed for an existing client. Of the $7.3 billion balance, $5.3 billion was for long-dated portfolios and $2.0 billion was in cash management products. We continue to see significant opportunities to achieve organic growth with competitive performance across a broad array of products supporting a substantial pipeline of searches in process and sustained strong interest in our BlackRock Solutions and advisory capabilities.

Total revenue for the quarter ended September 30, 2005 increased $129.8 million, or 76%, to $300.8 million, compared to $171.0 million for the quarter ended September 30, 2004. Separate account revenue, mutual fund revenue and other income increased by $79.3 million, or 85%, $27.8 million, or 51%, and $22.7 million, or 97%, respectively.

The increase in separate account revenue was driven by a $47.2 million, or 51%, increase in separate account base fees from $92.9 million for the quarter ended September 30, 2004 to $140.1 million for the quarter ended September 30, 2005 and a $32.1 million increase in separate account performance fees to $32.7 million for the quarter ended September 30, 2005. Separate account base fees rose as a result of a $40.2 billion increase in AUM related to the January 2005 closing of the SSR acquisition and an increase in AUM, exclusive of the acquisition, of $40.8 billion since September 30, 2004. The increase in separate account performance fees reflected fees on the Company’s equity and fixed income hedge funds and real estate alternative investment products. The increase in mutual fund revenue primarily reflects the merger of SSR’s mutual funds into the BlackRock Funds contributing to a $9.6 billion, or 59%, increase in average AUM for the third quarter of 2005 as well as $2.4 billion of new closed-end funds launched since September 30, 2004. Other income increased $22.7 million, or 97%, to $46.2 million during the quarter ended September 30, 2005 compared to the quarter ended September 30, 2004 primarily due to $8.9 million in property management fees earned on real estate equity accounts assumed in the SSR acquisition, a $7.4 million increase in BlackRock Solutions products and services and $4.4 million of higher distribution fees earned on the BlackRock Funds.

3

BlackRock, Inc.

Third Quarter 2005 Earnings Release

During the third quarter of 2005, total revenue increased approximately $29.4 million, or 11%, as compared to the second quarter of 2005 primarily due to strong organic growth in AUM, increased equity and real estate alternative investment product performance fees and higher BlackRock Solutions revenues.

	Three months ended						Variance vs.
	September 30,				June 30, 2005		September 30, 2004				June 30, 2005
	2005		2004				Amount		%		Amount			%
(Dollar amounts in thousands)
Mutual fund revenue
BlackRock Funds	$	36,784	$	16,289	$	34,856	$	20,495	125.8	%	$	1,928		5.5	%
Closed-end Funds		23,128		17,978		21,095		5,150	28.6			2,033		9.6
BlackRock Liquidity Funds		21,171		19,508		20,310		1,663	8.5			861		4.2
Other commingled funds		740		298		986		442	148.3			(246	)	(24.9	)
Total mutual fund revenue		81,823		54,073		77,247		27,750	51.3			4,576		5.9
Separate account revenue
Separate account base fees		140,148		92,943		132,786		47,205	50.8			7,362		5.5
Separate account performance fees		32,670		539		21,438		32,131	NM			11,232		52.4
Total separate account revenue		172,818		93,482		154,224		79,336	84.9			18,594		12.1
Total investment advisory and administration fees		254,641		147,555		231,471		107,086	72.6			23,170		10.0
Other income		46,166		23,444		39,918		22,722	96.9			6,248		15.7
Total revenue	$	300,807	$	170,999	$	271,389	$	129,808	75.9	%	$	29,418		10.8	%

4

BlackRock, Inc.

Third Quarter 2005 Earnings Release

Total revenue for the nine months ended September 30, 2005 increased $285.6 million, or 53%, to $822.3 million compared to $536.6 million during the nine months ended September 30, 2004. Separate account revenue increased by $164.5 million, or 54%, mutual fund revenue increased by $63.9 million, or 39%, and other income increased by $57.2 million, or 86%, compared with the nine months ended September 30, 2004. The increase in separate account revenue was driven by a $117.7 million increase in separate account base fees from $270.4 million for the nine months ended September 30, 2004 to $388.2 million for the nine months ended September 30, 2005 and a $46.8 million increase in separate account performance fees to $80.8 million as compared to $34.0 million earned for the same period in 2004. The growth in separate account base fees was due to an $81.0 billion increase in AUM, approximately half of which related to the SSR acquisition. The increase in separate account performance fees primarily reflects positive performance in equity and fixed income hedge funds. The increase in mutual fund revenue primarily includes increases in BlackRock Funds revenue and closed-end fund revenue of $47.6 million and $11.9 million, respectively. The rise in BlackRock Funds revenue largely reflects the merger of SSR’s mutual funds into the BlackRock Funds contributing to a $7.2 billion, or 40%, increase in average AUM in the BlackRock Funds during the period. Closed-end fund revenue increased during the period due to several closed-end fund launches, resulting in a $2.4 billion increase in AUM since September 30, 2004. Other income increased primarily due to $23.3 million in property management fees earned on real estate equity accounts assumed in the SSR acquisition, a $20.3 million increase in BlackRock Solutions products and services and a $9.7 million rise in distribution fees earned on the BlackRock Funds.

	Nine months ended September 30,				Variance
	2005		2004		Amount		%
(Dollar amounts in thousands)
Mutual funds revenue
BlackRock Funds	$	100,680	$	53,128	$	47,552	89.5	%
Closed-end Funds		64,120		52,252		11,868	22.7
BlackRock Liquidity Funds		62,707		59,281		3,426	5.8
Other commingled funds		1,934		839		1,095	130.5
Total mutual funds revenue		229,441		165,500		63,941	38.6
Separate accounts revenue
Separate accounts base fees		388,163		270,427		117,736	43.5
Separate accounts performance fees		80,764		33,959		46,805	137.8
Total separate accounts revenue		468,927		304,386		164,541	54.1
Total investment advisory and administration fees		698,368		469,886		228,482	48.6
Other income		123,910		66,748		57,162	85.6
Total revenue	$	822,278	$	536,634	$	285,644	53.2	%

5

BlackRock, Inc.

Third Quarter 2005 Earnings Release

Total expense for the quarter ended September 30, 2005 increased $27.8 million, or 14%, to $221.1 million, compared to $193.4 million for the quarter ended September 30, 2004. The increase in total expense for the quarter primarily reflects a $22.3 million increase in general and administration expense to $51.5 million and a $3.7 million rise in fund administration and servicing costs to $12.0 million. Compensation and benefits expense decreased by $0.5 million for the quarter ended September 30, 2005 including a $75.6 million decline in LTIP expense. During the third quarter of 2004, management determined that full vesting of LTIP awards was probable and recorded a charge of $90.6 million reflecting LTIP expense from the beginning of the LTIP’s service period, January 1, 2002 through September 30, 2004, including related payroll taxes. Offsetting the decreased LTIP expense was higher base compensation and benefit costs of $33.1 million due to increased staffing levels resulting from the SSR acquisition and business growth and increased incentive compensation expense of $34.4 million associated with higher performance fees and increased operating profits. General and administration expense rose during the period primarily due to a $12.3 million increase in marketing and promotional expenses related to the Company’s mutual fund businesses and expanded institutional marketing efforts, particularly overseas, a rise in occupancy expense of $3.6 million reflecting the Company’s January 2005 occupancy of an additional 88,500 square feet in New York, costs assumed with the SSR acquisition as well as an increase in market data services of $2.4 million to support higher AUM levels and increased trading activities. Fund administration and servicing costs increased by $3.7 million, or 45%, in the third quarter of 2005 primarily as a result of increased networking and servicing fees on BlackRock Funds.

The $31.6 million, or 17%, increase in total expense compared to the second quarter of 2005 is primarily due to increased compensation and benefit costs of $24.1 million, increased marketing and promotional expense of $4.3 million largely due to a new closed-end fund launch and higher shareholder servicing expenses of $1.6 million for the BlackRock Funds and closed-end funds. The rise in compensation and benefit costs was primarily attributable to a $12.4 million increase in incentive compensation expense due to higher alternative product performance fees and an $8.2 million increase in deferred compensation expense associated with market appreciation on employee investments in the Company’s deferred compensation plans.

	Three months ended						Variance vs.
	September 30,				June 30,		September 30, 2004				June 30, 2005
	2005		2004		2005		Amount		%		Amount		%
(Dollar amounts in thousands)
General and administration expense:
Marketing and promotional	$	20,097	$	7,823	$	15,756	$	12,274	156.9	%	$	4,341	27.6	%
Occupancy		9,631		6,066		9,094		3,565	58.8			537	5.9
Technology		5,591		4,771		5,393		820	17.2			198	3.7
Other general and administration		16,205		10,599		16,154		5,606	52.9			51	0.3
Total general and administration expense	$	51,524	$	29,259	$	46,397	$	22,265	76.1	%	$	5,127	11.1	%

6

BlackRock, Inc.

Third Quarter 2005 Earnings Release

Total expenses for the nine months ended September 30, 2005 increased $167.5 million, or 39%, to $594.1 million compared to $426.7 million for the nine months ended September 30, 2004. The increase was primarily attributable to an increase of $109.8 million, or 36%, in employee compensation and benefits, an increase of $52.2 million, or 57%, in general and administration expense and a $6.9 million, or 28%, increase in fund administration and servicing costs. The rise in employee compensation and benefits was primarily attributable to a $90.0 million increase in base compensation and benefits as a result of higher staffing levels associated with the SSR acquisition and business growth, a $59.0 million increase in incentive compensation expense attributable to operating income growth and higher performance fees earned on the Company’s alternative investment products, partially offset by a $46.3 million decrease in LTIP costs. General and administration expense rose during the period primarily due to a $24.3 million increase in marketing and promotional costs, a rise in occupancy expense of $8.7 million, and an increase of $5.4 million in market data services resulting from higher trading volumes. The rise in marketing and promotion costs was largely attributable to a $13.3 million increase in mutual fund distribution expenses and a $6.2 million increase in travel and entertainment costs due to the SSR acquisition and expanded international marketing activity. Fund administration and servicing costs increased by $6.9 million largely as a result of increased networking and servicing fees on BlackRock Funds.

	Nine months ended September 30,				Variance
	2005		2004		Amount		%
(Dollar amounts in thousands)
General and administration expense:
Marketing and promotional	$	49,978	$	25,663	$	24,315	94.7	%
Occupancy		26,312		17,633		8,679	49.2
Technology		16,874		13,933		2,941	21.1
Other general and administration		50,925		34,692		16,233	46.8
Total general and administration expense	$	144,089	$	91,921	$	52,168	56.8	%

Non-operating income for the quarter and nine months ended September 30, 2005 increased $13.7 million and $4.2 million, respectively, versus the comparative periods in 2004 due to market appreciation on Company investments and employee investments in the firm’s deferred compensation plans and increased security gains in 2005, partially offset by interest expense associated with borrowings used to finance the SSR acquisition in 2005. Included in non-operating income for the nine months ended September 30, 2004 was a $13.0 million gain realized on the Company’s sale of its interest in Trepp LLC. During the third quarter of 2005, non-operating income increased $15.5 million compared to the second quarter of 2005, primarily due to higher investment appreciation on employee investments in the Company’s deferred compensation plans.

During the third quarter of 2005, the Company continued to make open market acquisitions of its common stock under a two million share repurchase program. The Company purchased approximately 472,000 shares during the quarter for a total of $40.2 million and is authorized to purchase an additional 181,000 shares as market conditions permit.

As a result of the SSR acquisition, BlackRock significantly increased both the number and the diversity of products on which performance fees can be earned. Currently, a number of products, particularly in the energy and real estate sectors, have the potential to generate substantial performance fees in the fourth quarter of 2005. The ultimate amount and timing of the realization of such fees will be affected

7

BlackRock, Inc.

Third Quarter 2005 Earnings Release

by investment performance in these products during the remainder of 2005. In addition, the Company is currently marketing a new closed-end fund which could result in the recognition of substantial launch costs in the fourth quarter.

Performance Notes

Past performance is no guarantee of future results.

Mutual fund performance data is net of fees and expenses, assumes the reinvestment of dividends and capital gains distributions and reflects the performance of the Institutional Class, with the exception of the BlackRock Funds, Government Income Portfolio, which reflects the performance of the Investor A Shares class. BlackRock waives fees, without which performance would be lower. Investments in BlackRock Funds and BlackRock Liquidity 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 charges. Funds with returns among the top 25% of a peer group of funds with comparable objectives are in the first quartile and funds with returns in the next 25% of a peer group are in the second quartile. Some funds have less than one year of performance.

Fixed Income Portfolios of BlackRock Funds: The Core Bond Total Return, Core PLUS Total Return, Intermediate PLUS Bond and the Managed Income Portfolios are in the Intermediate Investment Grade Debt Lipper peer group. The Low Duration Bond and Enhanced Income Portfolios are in the Short Investment Grade Debt Lipper peer group. The Intermediate Bond Portfolio is in the Short-Intermediate Investment Grade Debt Lipper peer group. The High Yield Bond Portfolio is in the High Current Yield Lipper peer group and the Government Income Portfolio is in the General U.S. Government Lipper peer group. The Intermediate Government Bond Portfolio is in the Intermediate U.S. Government Lipper peer group. The Inflation Protected Bond Portfolio is in the Treasury Inflation Protected Securities Lipper peer group and the GNMA Portfolio is in the GNMA Lipper peer group.

Equity Portfolios of BlackRock Funds: The Investment Trust Portfolio is in the Large Cap Core Lipper peer group. The Index Equity Portfolio is in the S&P 500 Index Objective Lipper peer group. The Asset Allocation Portfolio is in the Flexible Portfolio Lipper peer group. The Small/Mid-Cap Growth and Mid-Cap Value Equity Portfolios are in the Small Cap Growth and Mid-Cap Value Lipper peer groups, respectively. The Large Cap Value and Small Cap Value Equity Portfolios are in the Multi-Cap Value and Small Cap Value Lipper peer groups, respectively. The Small Cap Core and Small Cap Growth Equity Portfolios are in the Small Cap Core Lipper peer group. The Health Sciences Portfolio is in the Health/Biotechnology Lipper peer group. The International Opportunities and Legacy Portfolios are in the International Small/Mid-Cap Growth and Large Cap Growth Lipper peer groups, respectively. The Global Resources and All-Cap Global Resources Portfolios are in the Natural Resources Lipper peer group. The U.S. Opportunities and Global Science and Technology Portfolios are in the Mid-Cap Core and Science and Technology Lipper peer groups, respectively.

BlackRock Liquidity Funds: TempFund and TempCash are in the Institutional Money Market Lipper peer group, and Federal Trust Fund and FedFund are in the Institutional U.S. Government Money Market Lipper peer group. T-Fund and Treasury Trust Fund are in the Institutional U.S. Treasury Lipper peer group. MuniCash and MuniFund are in the Institutional Tax-Exempt Money Market Lipper peer group. California Money Fund and New York Money Fund are in the California Tax-Exempt and New York Tax-Exempt Money Market Lipper peer groups, respectively.

Composites Performance: Investment performance does not reflect the deduction of advisory fees and other expenses, which will reduce performance results and the return to investors. All performance results assume reinvestment of dividends, interest and/or capital gains. BlackRock is the source of benchmark data for composites. Some BlackRock composites have less than one year of performance.

8

BlackRock, Inc.

Third Quarter 2005 Earnings Release

About BlackRock

BlackRock is one of the largest publicly traded investment management firms in the United States with approximately $427.8 billion of assets under management at September 30, 2005. 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, investment system outsourcing and financial advisory services to a growing number of institutional investors. Clients are served from the Company’s headquarters in New York City, as well as offices in Boston, Chicago, Edinburgh, Hong Kong, San Francisco, Singapore, Sydney, Tokyo and Wilmington. BlackRock is majority owned by The PNC Financial Services Group, Inc. (NYSE: PNC) and by BlackRock employees. For additional information, please visit the Company’s website at www.blackrock.com.

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 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,” “anticipate,” “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. The information contained on our website is not a part of this press release.

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 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, 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 relative and absolute 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 or divestitures; (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; (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, 2004 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.

9

TABLE 1

BlackRock, Inc.

Financial Highlights

(Dollar amounts in thousands, except share data)

(unaudited)

	Three months ended									Variance vs.
	September 30,						June 30,			September 30, 2004				June 30, 2005
	2005			2004			2005			Amount		%		Amount			%
Total revenue	$	300,807		$	170,999		$	271,389		$	129,808	76	%	$	29,418		11	%
Total expense	$	221,138		$	193,375		$	189,494		$	27,763	14	%	$	31,644		17	%
Operating income (loss)	$	79,669			($22,376	)	$	81,895		$	102,045	NM			($2,226	)	-3	%
Operating income, as adjusted (b)	$	100,160		$	52,016		$	94,333		$	48,144	93	%	$	5,827		6	%
Net income (loss)	$	61,119			($9,814	)	$	53,335		$	70,933	NM		$	7,784		15	%
Net income, as adjusted (a)	$	68,876		$	36,885		$	60,565		$	31,991	87	%	$	8,311		14	%
Diluted earnings (loss) per share	$	0.92			($0.15	)	$	0.80		$	1.07	NM		$	0.12		15	%
Diluted earnings per share, as adjusted (a)	$	1.03		$	0.56		$	0.91		$	0.47	84	%	$	0.12		13	%
Average diluted shares outstanding		66,714,797			63,676,776			66,796,087			3,038,021	5	%		(81,290	)	0	%
Operating margin		26.5	%		-13.1	%		30.2	%
Operating margin, as adjusted (b)		35.5	%		32.0	%		37.0	%
Assets under management ($ in millions)	$	427,837		$	323,465		$	414,411		$	104,372	32	%	$	13,426		3	%

	Nine months ended
	September 30,						Variance
	2005			2004			Amount		%
Total revenue	$	822,278		$	536,634		$	285,644	53	%
Total expense	$	594,133		$	426,662		$	167,471	39	%
Operating income	$	228,145		$	109,972		$	118,173	107	%
Operating income, as adjusted (b)	$	283,781		$	193,500		$	90,281	47	%
Net income	$	160,990		$	93,389		$	67,601	72	%
Net income, as adjusted (a)	$	188,960		$	129,997		$	58,963	45	%
Diluted earnings per share	$	2.41		$	1.42		$	0.99	70	%
Diluted earnings per share, as adjusted (a)	$	2.83		$	1.98		$	0.85	43	%
Average diluted shares outstanding		66,809,706			65,858,552			951,154	1	%
Operating margin		27.7	%		20.5	%
Operating margin, as adjusted (b)		36.7	%		37.8	%
Assets under management ($ in millions)	$	427,837		$	323,465		$	104,372	32	%

10

BlackRock, Inc.

Financial Highlights (continued)

^(a) While BlackRock reports its financial results using accounting principles generally accepted in the United States of America (GAAP), management believes that evaluating its ongoing operating results may not be as useful if investors are limited to reviewing only GAAP financial measures. Management reviews non-GAAP financial measures to assess on-going operations, and for the reasons described below, considers them to be effective indicators, for both management and investors, of BlackRock's profitability and financial performance over time. Nevertheless, BlackRock’s management does not advocate that investors consider such non-GAAP financial measures in isolation from, or as a substitute for, financial information prepared in accordance with GAAP.

Net income, as adjusted, and diluted earnings per share, as adjusted have been derived from BlackRock's consolidated financial statements, as follows:

	Three months ended								Nine months ended
	September 30,					June 30, 2005			September 30,
	2005		2004						2005			2004
Net income, GAAP basis	$	61,119		($9,814	)	$	53,335		$	160,990		$	93,389
Add back:   PNC’s LTIP funding requirement		7,757		46,699			7,716			22,866			46,699
SSR acquisition costs		—		—			—			5,590			—
Release of reserves related to the New York State tax audit		—		—			—			—			(8,519	)
Impact of Trepp sale		—		—			(486	)		(486	)		(1,572	)
Net income, as adjusted		68,876		36,885			60,565			188,960			129,997
Diluted earnings per share, GAAP basis	$	0.92		($0.15	)	$	0.80		$	2.41		$	1.42
Diluted earnings per share, as adjusted	$	1.03	$	0.56		$	0.91		$	2.83		$	1.98

We believe that net income, as adjusted, and diluted earnings per share, as adjusted, are effective measurements of BlackRock’s historical profitability and financial performance. The LTIP expense associated with awards to be met by PNC’s funding requirement has been excluded from net income, as adjusted, and diluted earnings per share, as adjusted, because these changes do not result in an economic cost to the Company and, exclusive of the impact related to LTIP participants’ put options, these charges will not impact BlackRock’s book value. SSR acquisition costs consist of certain compensation costs and professional fees. Compensation reflected in this amount represents direct incentives related to alternative product performance fees generated in 2004 by SSR employees, assumed in conjunction with the acquisition and settled by BlackRock with no future service requirement. Net income, as adjusted, and diluted earnings per share, as adjusted, exclude this amount because it does not relate to the current period’s operations. Professional fees reflected in this amount, which have been deemed non-recurring by management, have been excluded from net income, as adjusted, and diluted earnings per share, as adjusted, to help ensure the comparability of this information to prior reporting periods.

^(b) Operating margin, as adjusted, equals operating income, as adjusted, divided by revenue used for operating margin measurement, as indicated in the table below. 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								Nine months ended
	September 30,					June 30, 2005			September 30,
	2005			2004					2005			2004
Operating income, GAAP basis	$	79,669		($22,376	)	$	81,895		$	228,145		$	109,972
Add back: PNC LTIP funding obligation		12,313		74,125			12,247			36,296			74,125
Appreciation on assets related to deferred compensation plans		8,178		267			191			10,467			2,399
Trepp bonus		—		—			—			—			7,004
SSR acquisition costs		—		—			—			8,873			—
Operating income, as adjusted		100,160		52,016			94,333			283,781			193,500
Revenue, as reported		300,807		170,999			271,389			822,278			536,634
Less: fund administration and servicing costs		(11,997	)	(8,277	)		(10,426	)		(31,531	)		(24,655	)
Reimbursable property management compensation		(6,485	)	—			(6,239	)		(16,783	)		—
Revenue used for operating margin measurement		282,325		162,722			254,724			773,964			511,979
Operating margin, GAAP basis		26.5	%	-13.1	%		30.2	%		27.7	%		20.5	%
Operating margin, as adjusted		35.5	%	32.0	%		37.0	%		36.7	%		37.8	%

We believe that operating income, as adjusted, and operating margin, as adjusted, are effective indicators of management’s ability to, and useful to management in deciding how to, effectively employ BlackRock’s resources. As such, management believes that operating income, as adjusted, and operating margin, as adjusted, provide useful disclosure to investors. Compensation expense associated with appreciation on assets related to BlackRock’s deferred compensation plans has been excluded because investment returns on these assets reported in non-operating income results in a nominal impact on net income. Reimbursable property management compensation represents compensation and benefits paid to certain BlackRock Realty Advisors, Inc. (“Realty”) personnel. These employees are retained on Realty’s payroll when properties are acquired by Realty's clients. The related compensation and benefits are fully reimbursed by Realty’s clients and have been excluded from revenue used for operating margin meaurement, as adjusted, because they bear no economic cost to BlackRock. Fund administration and servicing costs have been excluded from revenue used for operating margin measurement, as adjusted, because these costs fluctuate based on the discretion of a third party.

11

TABLE 2

BlackRock, Inc.

Condensed Consolidated Statements of Income

(Dollar amounts in thousands, except share data)

(unaudited)

	Three months ended								Nine months ended
	September 30, 2005			September 30, 2004			% Change		September 30, 2005			September 30, 2004			% Change
Revenue
Investment advisory and administration fees
Mutual funds	$	81,823		$	54,073		51.3	%	$	229,441		$	165,500		38.6	%
Separate accounts		172,818			93,482		84.9			468,927			304,386		54.1
Total investment advisory and administration fees		254,641			147,555		72.6			698,368			469,886		48.6
Other income		46,166			23,444		96.9			123,910			66,748		85.6
Total revenue		300,807			170,999		75.9			822,278			536,634		53.2
Expense
Employee compensation and benefits		155,077			155,556		(0.3	)		413,036			303,243		36.2
Fund administration and servicing costs
Affiliates		4,250			4,227		0.5			12,362			14,243		(13.2	)
Other		7,747			4,050		91.3			19,169			10,412		84.1
General and administration		51,524			29,259		76.1			144,089			91,921		56.8
Amortization of intangible assets		2,540			283		NM			5,477			746		NM
Impairment of intangible assets		—			—		NM			—			6,097		(100.0	)
Total expense		221,138			193,375		14.4			594,133			426,662		39.3
Operating income (loss)		79,669			(22,376	)	NM			228,145			109,972		107.5
Non-operating income (expense)
Investment income		21,439			4,717		354.5			37,252			27,652		34.7
Interest (expense) income		(2,008	)		965		(308.1	)		(6,084	)		(669	)	NM
		19,431			5,682		242.0			31,168			26,983		15.5
Income (loss) before income taxes and minority interest		99,100			(16,694	)	NM			259,313			136,955		89.3
Income taxes		37,077			(7,265	)	NM			95,732			39,345		143.3
Income (loss) before minority interest		62,023			(9,429	)	NM			163,581			97,610		67.6
Minority interest		904			385		134.8			2,591			4,221		(38.6	)
Net income (loss)	$	61,119			($9,814	)	NM		$	160,990		$	93,389		72.4
Weighted-average shares outstanding
Basic		64,087,871			63,676,776		0.6	%		64,243,408			63,693,281		0.9	%
Diluted		66,714,797			63,676,776		4.8	%		66,809,706			65,858,552		1.4	%
Earnings (loss) per share
Basic	$	0.95			($0.15	)	NM		$	2.51		$	1.47		70.7	%
Diluted	$	0.92			($0.15	)	NM		$	2.41		$	1.42		69.7	%

NM - Not meaningful

12

TABLE 3

BlackRock, Inc.

Condensed Consolidated Statements of Financial Condition

(Dollar amounts in thousands)

(unaudited)

	September 30, 2005		December 31, 2004
Assets
Cash and cash equivalents	$	396,514	$	457,673
Accounts receivable		307,598		165,342
Investments		277,632		227,497
Property and equipment, net		123,687		93,701
Intangible assets, net		491,710		184,110
Deferred mutual fund commissions		12,555		—
Other assets		63,408		16,912
Total assets	$	1,673,104	$	1,145,235
Liabilities, minority interest and stockholders’ equity
Accounts payable and accrued liabilities	$	80,478	$	30,817
Accrued compensation		409,992		311,351
Purchase price contingencies		29,775		—
Acquired management contract obligation		3,791		4,810
Long term borrowings		250,000		—
Other liabilities		22,292		12,736
Total liabilities		796,328		359,714
Minority interest		9,586		17,169
Stockholders’ equity		867,190		768,352
Total liabilities, minority interest and stockholders’ equity	$	1,673,104	$	1,145,235

13

TABLE 4

BlackRock, Inc.

Consolidated Statements of Cash Flows

(Dollar amounts in thousands)

(unaudited)

	Nine months ended September 30,
	2005			2004
Cash flows from operating activities
Net income	$	160,990		$	93,389
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		22,414			15,462
Impairment of intangible assets		—			6,097
Minority interest		2,591			4,221
Stock-based compensation		52,963			9,518
Deferred income taxes		(2,609	)		(20,908	)
Tax benefit from stock-based compensation		4,040			1,690
Net gain on investments		(15,580	)		(13,142	)
Amortization of bond issuance costs		700			—
Amortization of deferred mutual fund commissions		8,269			—
Changes in operating assets and liabilities:
Increase in accounts receivable		(101,340	)		(22,998	)
Increase in investments, trading		(7,927	)		(10,600	)
Increase in receivable from affiliates		(23,391	)		(608	)
Increase in other assets		(8,478	)		(952	)
Increase in accrued compensation		4,105			85,620
Decrease in accounts payable and accrued liabilities		(34,318	)		(4,387	)
Increase in other liabilities		7,756			1,060
Cash provided by operating activities		70,185			143,462
Cash flows from investing activities
Purchase of property and equipment		(42,930	)		(15,245	)
Purchase of investments		(12,799	)		(90,121	)
Sale of investments		44,168			145,737
Sale of real estate held for sale		112,184			—
Deemed cash contribution upon consolidation of VIE		—			6,412
Consolidation of sponsored investment funds		—			(43,169	)
Acquisitions, net of cash acquired		(247,220	)		(74	)
Cash (used in) provided by investing activities		(146,597	)		3,540
Cash flows from financing activities
Borrowings, received, net of issuance costs		395,000			—
Principal repayment of borrowings		(150,000	)		—
Repayment of short term borrowings		(111,840	)		—
Subscriptions to consolidated sponsored investment funds		7,996			5,152
Decrease in cash due to deconsolidated sponsored investment fund		(5,509	)		—
Distributions paid to minority interest holders		—			(5,794	)
Dividends paid		(57,507	)		(47,685	)
Reissuance of treasury stock		13,268			13,325
Purchase of treasury stock		(72,775	)		(48,539	)
Issuance of class A common stock		706			—
Acquired management contract obligation payment		(1,019	)		(926	)
Cash provided by (used in) financing activities		18,320			(84,467	)
Effect of exchange rate changes on cash and cash equivalents		(3,067	)		955
Net (decrease) increase in cash and cash equivalents		(61,159	)		63,490
Cash and cash equivalents, beginning of period		457,673			315,941
Cash and cash equivalents, end of period	$	396,514		$	379,431

14

TABLE 5

BlackRock, Inc.

Assets Under Management

(Dollar amounts in millions)

(unaudited)

	September 30,				December 31, 2004
	2005		2004
All Accounts
Fixed income	$	290,041	$	235,535	$	240,709
Cash Management		76,713		67,837		78,057
Equity		35,600		12,675		14,792
Alternative investment products		25,483		7,418		8,202
Total	$	427,837	$	323,465	$	341,760
Separate Accounts
Fixed income	$	264,704	$	211,075	$	216,070
Cash Management		8,357		7,703		7,360
Cash Management-Securities lending		5,653		8,636		6,898
Equity		19,789		8,129		9,397
Alternative investment products		25,483		7,418		8,202
Subtotal		323,986		242,961		247,927
Mutual Funds
Fixed income		25,337		24,460		24,639
Cash Management		62,703		51,498		63,799
Equity		15,811		4,546		5,395
Subtotal		103,851		80,504		93,833
Total	$	427,837	$	323,465	$	341,760

Component Changes in Assets Under Management

(Dollar amounts in millions)

(unaudited)

	Three months ended September 30,				Nine months ended September 30,
	2005		2004		2005			2004
All Accounts
Beginning assets under management	$	414,411	$	309,654	$	341,760		$	309,356
Net subscriptions		10,747		7,302		26,411			6,945
Acquisitions		—		—		49,966			—
Market appreciation		2,679		6,509		9,700			7,164
Ending assets under management	$	427,837	$	323,465	$	427,837		$	323,465
Separate Accounts
Beginning assets under management	$	315,236	$	230,845	$	247,927		$	222,589
Net subscriptions		6,818		5,956		27,409			13,200
Acquisitions		—		—		40,181			—
Market appreciation		1,932		6,160		8,469			7,172
Ending assets under management		323,986		242,961		323,986			242,961
Mutual Funds
Beginning assets under management		99,175		78,809		93,833			86,767
Net subscriptions (redemptions)		3,929		1,346		(998	)		(6,255	)
Acquisitions		—		—		9,785			—
Market appreciation (depreciation)		747		349		1,231			(8	)
Ending assets under management		103,851		80,504		103,851			80,504
Total	$	427,837	$	323,465	$	427,837		$	323,465

15

BlackRock, Inc.

Assets Under Management

Quarterly Trend

(Dollar amounts in millions)

(unaudited)

	Quarter Ended
	2004						2005									Nine months ended
	September 30			December 31			March 31			June 30			September 30			September 30, 2005
Separate Accounts
Fixed Income
Beginning assets under management	$	199,762		$	211,075		$	216,070		$	239,912		$	258,411		$	216,070
Net subscriptions		5,201			1,121			4,906			12,855			6,891			24,652
Acquisitions		—			—			20,005			—			—			20,005
Market appreciation (depreciation)		6,112			3,874			(1,069	)		5,644			(598	)		3,977
Ending assets under management		211,075			216,070			239,912			258,411			264,704			264,704
Cash Management
Beginning assets under management		6,896			7,703			7,360			7,307			8,164			7,360
Net subscriptions (redemptions)		787			(362	)		(632	)		809			153			330
Acquisitions		—			—			558			—			—			558
Market appreciation		20			19			21			48			40			109
Ending assets under management		7,703			7,360			7,307			8,164			8,357			8,357
Cash Management-Securities lending
Beginning assets under management		8,771			8,636			6,898			6,791			7,368			6,898
Net subscriptions (redemptions)		(135	)		(1,738	)		(107	)		577			(1,715	)		(1,245	)
Ending assets under management		8,636			6,898			6,791			7,368			5,653			5,653
Equity
Beginning assets under management		8,790			8,129			9,397			18,610			18,525			9,397
Net subscriptions (redemptions)		(748	)		31			(107	)		(376	)		(203	)		(686	)
Acquisitions		—			—			9,061			—			—			9,061
Market appreciation		87			1,237			259			291			1,467			2,017
Ending assets under management		8,129			9,397			18,610			18,525			19,789			19,789
Alternative investment products
Beginning assets under management		6,626			7,418			8,202			19,566			22,768			8,202
Net subscriptions		851			666			462			2,204			1,692			4,358
Acquisitions		—			—			10,557			—			—			10,557
Market appreciation (depreciation)		(59	)		118			345			998			1,023			2,366
Ending assets under management		7,418			8,202			19,566			22,768			25,483			25,483
Total Separate Accounts
Beginning assets under management		230,845			242,961			247,927			292,186			315,236			247,927
Net subscriptions (redemptions)		5,956			(282	)		4,522			16,069			6,818			27,409
Acquisitions		—			—			40,181			—			—			40,181
Market appreciation (depreciation)		6,160			5,248			(444	)		6,981			1,932			8,469
Ending assets under management	$	242,961		$	247,927		$	292,186		$	315,236		$	323,986		$	323,986
Mutual Funds
Fixed Income
Beginning assets under management	$	23,780		$	24,460		$	24,639		$	25,379		$	25,671		$	24,639
Net subscriptions (redemptions)		270			197			(139	)		68			(82	)		(153	)
Acquisitions		—			—			989			89			—			1,078
Market appreciation (depreciation)		410			(18	)		(110	)		135			(252	)		(227	)
Ending assets under management		24,460			24,639			25,379			25,671			25,337			25,337
Cash Management
Beginning assets under management		50,276			51,498			63,799			59,985			59,651			63,799
Net subscriptions (redemptions)		1,222			12,309			(4,023	)		(334	)		3,052			(1,305	)
Acquisitions		—			—			210			—			—			210
Market depreciation		—			(8	)		(1	)		—			—			(1	)
Ending assets under management		51,498			63,799			59,985			59,651			62,703			62,703
Equity
Beginning assets under management		4,753			4,546			5,395			13,778			13,853			5,395
Net subscriptions (redemptions)		(146	)		455			(255	)		(244	)		959			460
Acquisitions		—			—			8,497			—			—			8,497
Market appreciation (depreciation)		(61	)		394			141			319			999			1,459
Ending assets under management		4,546			5,395			13,778			13,853			15,811			15,811
Total Mutual Funds
Beginning assets under management		78,809			80,504			93,833			99,142			99,175			93,833
Net subscriptions (redemptions)		1,346			12,961			(4,417	)		(510	)		3,929			(998	)
Acquisitions		—			—			9,696			89			—			9,785
Market appreciation		349			368			30			454			747			1,231
Ending assets under management	$	80,504		$	93,833		$	99,142		$	99,175		$	103,851		$	103,851

16

BlackRock, Inc.

Assets Under Management

Quarterly Trend

(Dollar amounts in millions)

(unaudited)

	2004						2005									Nine months ended
	September 30			December 31			March 31			June 30			September 30			September 30, 2005
Mutual Funds
BlackRock Funds
Beginning assets under management	$	16,603		$	16,305		$	16,705		$	25,755		$	25,598		$	16,705
Net subscriptions (redemptions)		(391	)		60			(430	)		(549	)		(122	)		(1,101	)
Acquisitions		—			—			9,476			89			—			9,565
Market appreciation		93			340			4			303			728			1,035
Ending assets under management		16,305			16,705			25,755			25,598			26,204			26,204
BlackRock Global Series
Beginning assets under management		1,293			1,299			1,223			1,115			1,023			1,223
Net subscriptions (redemptions)		(21	)		(117	)		(104	)		(92	)		69			(127	)
Market appreciation (depreciation)		27			41			(4	)		—			1			(3	)
Ending assets under management		1,299			1,223			1,115			1,023			1,093			1,093
BlackRock Liquidity Funds
Beginning assets under management		45,854			47,087			58,453			53,864			53,229			58,453
Net subscriptions (redemptions)		1,233			11,374			(4,589	)		(635	)		2,921			(2,303	)
Market depreciation		—			(8	)		—			—			—			—
Ending assets under management		47,087			58,453			53,864			53,229			56,150			56,150
Closed End
Beginning assets under management		14,233			14,895			15,410			15,835			16,270			15,410
Net subscriptions		433			520			175			284			993			1,452
Acquisitions		—			—			220			—			—			220
Market appreciation (depreciation)		229			(5	)		30			151			18			199
Ending assets under management		14,895			15,410			15,835			16,270			17,281			17,281
Other Commingled Funds
Beginning assets under management		826			918			2,042			2,573			3,055			2,042
Net subscriptions		92			1,124			531			482			68			1,081
Ending assets under management		918			2,042			2,573			3,055			3,123			3,123
Total Mutual Funds
Beginning assets under management		78,809			80,504			93,833			99,142			99,175			93,833
Net subscriptions (redemptions)		1,346			12,961			(4,417	)		(510	)		3,929			(998	)
Acquisitions		—			—			9,696			89			—			9,785
Market appreciation		349			368			30			454			747			1,231
Ending assets under management	$	80,504		$	93,833		$	99,142		$	99,175		$	103,851		$	103,851

17