<Page>

                            ML MILLBURN GLOBAL L.L.C.
                            (A DELAWARE LIMITED LIABILITY COMPANY)

                            Financial Statements for the years ended
                            December 31, 2002 and 2001 and Independent
                            Auditors' Report


[MERRILL LYNCH LOGO]

<Page>

ML MILLBURN GLOBAL L.L.C.
(A Delaware Limited Liability Company)


TABLE OF CONTENTS
--------------------------------------------------------------------------------

<Table>
<Caption>
                                                                            Page
                                                                            ----
<S>                                                                         <C>
INDEPENDENT AUDITORS' REPORT                                                   1

FINANCIAL STATEMENTS FOR THE YEARS ENDED
  DECEMBER 31, 2002 AND 2001:

  Statements of Financial Condition                                            2

  Statements of Income                                                         3

  Statements of Changes in Member's Capital                                    4

  Notes to Financial Statements                                             5-10
</Table>

<Page>

INDEPENDENT AUDITORS' REPORT

To the Member of
 ML Millburn Global L.L.C.:

We have audited the accompanying statements of financial condition of ML
Millburn Global L.L.C. (the "Company") as of December 31, 2002 and 2001, and the
related statements of income and of changes in member's capital for the years
then ended. These financial statements are the responsibility of the Company's
management. Our responsibility is to express an opinion on these financial
statements based on our audits.

We conducted our audits in accordance with auditing standards generally accepted
in the United States of America. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.

In our opinion, such financial statements present fairly, in all material
respects, the financial position of ML Millburn Global L.L.C. as of December 31,
2002 and 2001, and the results of its operations and changes in its member's
capital for the years then ended in conformity with accounting principles
generally accepted in the United States of America.

DELOITTE & TOUCHE LLP


New York, New York
March 3, 2003

<Page>

ML MILLBURN GLOBAL L.L.C.
(A Delaware Limited Liability Company)

STATEMENTS OF FINANCIAL CONDITION
DECEMBER 31, 2002 AND 2001
--------------------------------------------------------------------------------

<Table>
<Caption>
ASSETS                                                     2002           2001
                                                       ------------   ------------
<S>                                                    <C>            <C>
Equity in commodity futures trading accounts:

    Cash and option premiums                           $ 15,235,341   $ 12,228,687
    Net unrealized profit on open contracts (Note 2)      1,048,817        651,741
Subscriptions receivable                                          -        271,575
Accrued interest (Note 4)                                    16,558         19,884
                                                       ------------   ------------

                TOTAL                                  $ 16,300,716   $ 13,171,887
                                                       ============   ============

LIABILITIES AND MEMBER'S CAPITAL

LIABILITIES:

    Brokerage commissions payable (Note 4)             $    114,267   $     91,359
    Profit Shares payable (Note 5)                          484,266              -
    Administrative fees payable (Note 4)                      3,361          2,687
    Due to Invested funds                                   234,434              -
                                                       ------------   ------------

            Total liabilities                               836,328         94,046
                                                       ------------   ------------

MEMBER'S CAPITAL:
    Voting Member                                        15,464,388     13,077,841
                                                       ------------   ------------

            Total Member's capital                       15,464,388     13,077,841
                                                       ------------   ------------

                TOTAL                                  $ 16,300,716   $ 13,171,887
                                                       ============   ============
</Table>

See notes to financial statements.

                                        2
<Page>

ML MILLBURN GLOBAL L.L.C.
(A Delaware Limited Liability Company)

STATEMENTS OF INCOME
FOR THE YEARS ENDED DECEMBER 31, 2002 AND 2001
--------------------------------------------------------------------------------

<Table>
<Caption>
                                     2002           2001
                                 ------------   ------------
<S>                              <C>            <C>
REVENUES

Trading profit (loss):
    Realized (Note 6)            $  4,214,773   $  2,825,475
    Change in unrealized              397,076     (1,391,025)
                                 ------------   ------------

        Total trading results       4,611,849      1,434,450

Interest income (Note 4)              225,650        470,619
                                 ------------   ------------

        Total revenues              4,837,499      1,905,069
                                 ------------   ------------

EXPENSES

Brokerage commissions (Note 4)      1,216,466      1,167,933
Profit Shares (Note 5)                510,681              -
Administrative fees (Note 4)           35,778         34,351
                                 ------------   ------------


        Total expenses              1,762,925      1,202,284
                                 ------------   ------------

NET INCOME                       $  3,074,574   $    702,785
                                 ============   ============
</Table>

See notes to financial statements.

                                        3
<Page>

ML MILLBURN GLOBAL L.L.C.
(A Delaware Limited Liability Company)

STATEMENTS OF CHANGES IN MEMBER'S CAPITAL
FOR THE YEARS ENDED DECEMBER 31, 2002 AND 2001
--------------------------------------------------------------------------------

<Table>
<S>                                                  <C>
MEMBER'S CAPITAL,
  DECEMBER 31, 2000                                  $ 14,141,401

Net income                                                702,785

Withdrawals                                            (2,147,420)

Subscriptions                                             381,075
                                                     ------------

MEMBER'S CAPITAL,
  DECEMBER 31, 2001                                    13,077,841

Net income                                              3,074,574

Withdrawals                                            (1,742,545)

Subscriptions                                           1,054,518
                                                     ------------

MEMBER'S CAPITAL,
  DECEMBER 31, 2002                                  $ 15,464,388
                                                     ============
</Table>

See notes to financial statements.

                                        4
<Page>

ML MILLBURN GLOBAL L.L.C.
(A Delaware Limited Liability Company)

NOTES TO FINANCIAL STATEMENTS
--------------------------------------------------------------------------------

1.   SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

     ORGANIZATION

     ML Millburn Global L.L.C. (the "Company") was organized under the Delaware
     Limited Liability Company Act on November 22, 1996 and commenced trading
     activities on December 2, 1996. The Company engages in the speculative
     trading of futures, options on futures and forward contracts on a wide
     range of commodities. Millburn Ridgefield Corporation ("Millburn") is the
     trading advisor to the Company. MLIM Alternative Strategies LLC ("MLIM AS
     LLC"), a wholly-owned subsidiary of Merrill Lynch Investment Managers LP
     ("MLIM"), which, in turn, is an indirect wholly-owned subsidiary of Merrill
     Lynch & Co., Inc. ("Merrill Lynch"), has been delegated administrative
     authority over the Company. Merrill Lynch, Pierce Fenner & Smith
     Incorporated ("MLPF&S"), is the Company's commodity broker. The Company has
     authorized two classes of Membership Interests: Non-Voting Interests and
     Voting Interests (collectively, "Interests"). These two classes of
     Interests have common economic interests in the Company. The Non-Voting
     Interests, which can be held by non-United States investment funds
     sponsored by MLIM AS LLC, would not participate in the management of the
     Company, or engage, directly or indirectly in, participate in or control
     any portion of the business activities or affairs of the Company.
     Currently, there are no Non-Voting Members. Management of the Company is
     vested solely in the Voting Interests, which can be held by United States
     limited partnerships. Currently, there is only one Voting Member of the
     Company. The Voting Member controls all business activities and affairs of
     the Company, subject to the trading authority vested in and delegated to
     Millburn and the administrative authority vested in and delegated to MLIM
     AS LLC. The Voting Member is a "commodity pool" sponsored and managed by
     MLIM AS LLC.

     ESTIMATES

     The preparation of financial statements in conformity with accounting
     principles generally accepted in the United States of America requires
     management to make estimates and assumptions that affect the reported
     amounts of assets and liabilities and disclosure of contingent assets and
     liabilities at the date of the financial statements as well as the reported
     amounts of revenues and expenses during the reporting period. Actual
     results could differ from those estimates.

     REVENUE RECOGNITION

     Commodity futures, options on futures and forward contract transactions are
     recorded on the trade date, and open contracts are reflected in Net
     unrealized profit on open contracts in the Statements of Financial
     Condition at the difference between the original contract value and the
     market value (for those commodity interests for which market quotations are
     readily available) or at fair value. The change in net unrealized profit
     (loss) on open contracts from one period to the next is reflected in Change
     in unrealized under Trading profit (loss) in the Statements of Income.

                                        5
<Page>

     FOREIGN CURRENCY TRANSACTIONS

     The Company's functional currency is the U.S. dollar; however, it transacts
     business in currencies other than the U.S. dollar. Assets and liabilities
     denominated in currencies other than the U.S. dollar are translated into
     U.S. dollars at the rates in effect at the dates of the Statements of
     Financial Condition. Income and expense items denominated in currencies
     other than the U.S. dollar are translated into U.S. dollars at the rates in
     effect during the period. Gains and losses resulting from the translation
     to U.S. dollars are reported in total trading results currently.

     OPERATING EXPENSES

     MLIM AS LLC pays for all operating costs (including all legal, accounting,
     printing, postage and similar administrative expenses) of the Company.

     INCOME TAXES

     No provision for income taxes has been made in the accompanying financial
     statements as the Member is individually responsible for reporting income
     or loss based on such Member's respective share of the Company's income and
     expenses as reported for income tax purposes.

     DISTRIBUTIONS

     No distributions have been made by the Company for the years ended December
     31, 2002 or 2001.

     WITHDRAWALS

     The Member may withdraw some or all of such Member's capital at Net Asset
     Value as of the close of business on any business day. There are no
     withdrawal fees or charges.

     DISSOLUTION

     The Company will terminate on December 31, 2046 or at an earlier date if
     certain conditions occur, as well as under certain other circumstances as
     set forth in the Organization Agreement.

                                        6
<Page>

2.   CONDENSED SCHEDULE OF INVESTMENTS

     The Company's investments, defined as Net unrealized profit on open
     contracts on the Statements of Financial Condition, as of December 31, 2002
     and 2001 are as follows:

<Table>
<Caption>
2002                                 LONG POSITIONS                              SHORT POSITIONS
----                                 --------------                              ---------------
                                                                                                    NET UNREALIZED
   COMMODITY      NUMBER OF    UNREALIZED     PERCENT OF   NUMBER OF     UNREALIZED    PERCENT OF   PROFIT(LOSS) ON   PERCENT OF
INDUSTRY SECTOR   CONTRACTS   PROFIT (LOSS)   NET ASSETS   CONTRACTS    PROFIT (LOSS)  NET ASSETS   OPEN POSITIONS    NET ASSETS
---------------   ---------   -------------   ----------   ----------   ------------   ----------   ---------------   -----------
<S>               <C>         <C>                  <C>     <C>          <C>               <C>       <C>                    <C>
Currencies        4,646,031   $   2,685,808        17.37%  (3,246,832)  $ (2,308,673)     -14.93%   $       377,135        2.44%
Interest rates          617         524,018         3.39%           -              -        0.00%           524,018        3.39%
Metals                  147          31,399         0.20%         (86)        33,111        0.21%            64,510        0.41%
Stock indices             -               -         0.00%         (61)        83,154        0.54%            83,154        0.54%
                              -------------                             ------------                ---------------

Total                         $   3,241,225        20.96%               $ (2,192,408)     -14.18%   $     1,048,817        6.78%
                              =============                             ============                ===============
</Table>

<Table>
<Caption>
2001                                 LONG POSITIONS               SHORT POSITIONS
----                                 --------------               ---------------                NET UNREALIZED
                                UNREALIZED      PERCENT OF     UNREALIZED      PERCENT OF    PROFIT (LOSS) ON    PERCENT OF
COMMODITY INDUSTRY SECTOR     PROFIT (LOSS)     NET ASSETS    PROFIT (LOSS)    NET ASSETS     OPEN POSITIONS     NET ASSETS
-------------------------     -------------     ----------    -------------    ----------    ----------------    ----------
<S>                           <C>                    <C>      <C>                   <C>      <C>                      <C>
Currencies                    $      (36,338)        -0.28%   $     784,652          6.00%   $        748,314          5.72%
Interest rates                       (16,594)        -0.13%          61,143          0.47%             44,549          0.34%
Metals                               (27,919)        -0.21%        (120,300)        -0.92%           (148,219)        -1.13%
Stock indices                          2,651          0.02%           4,446          0.03%              7,097          0.05%
                              --------------                  -------------                  ----------------

Total                         $      (78,200)        -0.60%   $     729,941          5.58%   $        651,741          4.98%
                              ==============                  =============                  ================
</Table>

     No individual contract comprised greater than 5% of the Partnership's net
     assets during 2002 or 2001.

                                        7
<Page>

3.  FINANCIAL DATA HIGHLIGHTS

     The following ratios have been derived from information provided in the
     financial statements for the year ended December 31, 2002.

<Table>
     <S>                                          <C>
     Total investment return,
     compounded monthly                           25.74%
                                             ===========

     RATIOS TO AVERAGE NET ASSETS:

     Expenses                                     12.84%
                                             ===========

     Net income                                   22.40%
                                             ===========
</Table>

4.   RELATED PARTY TRANSACTIONS

     The Company's U.S. dollar assets are maintained at MLPF&S. On assets held
     in U.S. dollars, Merrill Lynch credits the Company with interest at the
     prevailing 91-day U.S. Treasury bill rate. The Company is credited with
     interest on any of its assets and net gains actually held by Merrill Lynch
     in non-U.S. dollar currencies at a prevailing local rate received by
     Merrill Lynch. Merrill Lynch may derive certain economic benefit, in excess
     of the interest which Merrill Lynch pays to the Company, from possession of
     such assets.

     Merrill Lynch charges the Company Merrill Lynch's cost of financing
     realized and unrealized losses on the Company's non-U.S. dollar-denominated
     positions.

     Following the allocation of the Company's trading profit (loss) and
     interest income to the Member's capital account, MLIM AS LLC calculates the
     brokerage commissions, administrative fees, Profit Shares and other
     expenses due from the Company to third parties. Such commissions, fees and
     expenses are specifically calculated for the Member as of the end of each
     accounting period and deducted from the Member's capital account and paid
     out by the Company. The Company currently pays brokerage commissions to
     MLPF&S at flat monthly rate of 0.708 of 1% (a 8.50% annual rate),
     reflecting the fee arrangement between the Member and MLPF&S.

     The Company pays MLPF&S a monthly administrative fee of 0.021 of 1% (a
     0.25% annual rate) of the Member's month-end assets. Month-end assets
     are not reduced for purposes of calculating brokerage commissions and
     administrative fees by any accrued brokerage commissions, administrative
     fees, Profit Shares or other fees or charges.

     MLPF&S pays Millburn an annual consulting fee of 2% of the Company's
     average month-end assets, after reduction for a portion of brokerage
     commissions.

                                        8
<Page>

5.   ADVISORY AGREEMENT

     The Advisory Agreement between the Company and Millburn has remained
     essentially unchanged since the inception of the Company. This Agreement is
     in effect for successive one-year terms, but, in fact, given the single
     advisor structure of the Company, the Company would terminate were Millburn
     to withdraw. Millburn determines the commodity futures, options on futures
     and forward contract trades to be made on behalf of the Company, subject to
     certain rights reserved by MLIM AS LLC.

     The Company pays to Millburn an annual Profit Share equal to 20% of any New
     Trading Profit, as defined, attributable to the Member's respective capital
     accounts. Profit Shares are calculated separately in respect of the
     Member's respective capital accounts. Profit Shares are also paid to
     Millburn upon the withdrawal of capital from the Company by the Member for
     whatever purpose, other than to pay expenses.

6.   COPPER SETTLEMENT

     The Company, as a member of a class of plaintiffs, received a settlement
     payment in August 2002 relating to certain copper trades made by a number
     of investors, including the Company, during a period in the mid-1990s.
     Members of the class were those who purchased or sold Comex copper
     fixtures or options contracts between June 24, 1993 and June 15, 1996.
     The amount of the settlement of the Company was $48,352, which is included
     in the realized profit of the Company. The effect of the settlement
     payment was included in the Company's performance in August 2002.

7.   FAIR VALUE AND OFF-BALANCE SHEET RISK

     The nature of this Company has certain risks, which can not be presented on
     the financial statements. The following summarizes some of those risks.

     MARKET RISK

     Derivative instruments involve varying degrees of off-balance sheet market
     risk, and changes in the level or volatility of interest rates, foreign
     currency exchange rates or the market values of the underlying financial
     instruments or commodities underlying such derivative instruments
     frequently result in changes in the Company's net unrealized profit on such
     derivative instruments as reflected in the Statements of Financial
     Condition. The Company's exposure to market risk is influenced by a number
     of factors, including the relationships among the derivative instruments
     held by the Company as well as the volatility and liquidity in the markets
     in which such derivative instruments are traded.

     MLIM AS LLC has procedures in place intended to control market risk
     exposure, although there can be no assurance that they will, in fact,
     succeed in doing so. These procedures focus primarily on monitoring the
     trading of Millburn, calculating the Net Asset Value of the Company and of
     the Member's respective capital accounts as of the close of business on
     each day and reviewing outstanding positions for over-concentrations. While
     MLIM AS LLC does not itself intervene in the markets to hedge or diversify
     the Company's market exposure, MLIM AS LLC may consult with Millburn
     concerning the possibility of Millburn reducing trading leverage or market
     concentrations. However, such interventions are unusual. Except in cases in
     which it appears that Millburn has begun to deviate from past practice and
     trading policies or to be trading erratically, MLIM AS LLC's basic risk
     control procedures consist simply of the ongoing process of advisor
     monitoring with the market risk controls being applied by Millburn.

                                        9
<Page>

     CREDIT RISK

     The risks associated with exchange-traded contracts are typically perceived
     to be less than those associated with over-the-counter
     (non-exchange-traded) transactions, because exchanges typically (but not
     universally) provide clearinghouse arrangements in which the collective
     credit (in some cases limited in amount, in some cases not) of the members
     of the exchange is pledged to support the financial integrity of the
     exchange. In over-the-counter transactions, on the other hand, traders must
     rely solely on the credit of their respective individual counterparties.
     Margins, which may be subject to loss in the event of a default, are
     generally required in exchange trading, and counterparties may require
     margin in the over-the-counter markets for the years ended December 31,
     2002 and 2001.

     The credit risk associated with these instruments from counterparty
     nonperformance is the net unrealized profit on open contracts, if any,
     included in the Statements of Financial Condition. The Company attempts to
     mitigate this risk by dealing exclusively with Merrill Lynch entities as
     clearing brokers.

     The Company, in its normal course of business, enters into various
     contracts, with MLPF&S acting as its commodity broker. Pursuant to the
     brokerage agreement with MLPF&S (which includes a netting arrangement), to
     the extent that such trading results in receivables from and payables to
     MLPF&S, these receivables and payables are offset and reported as a net
     receivable or payable and included in the Statements of Financial Condition
     under Equity in Commodity futures trading accounts.

8.   SUBSEQUENT EVENT

     As of February 28, 2003, the general partner of the Partnership changed its
     name from MLIM Alternative Strategies LLC to Merrill Lynch Alternative
     Investments LLC as part of an internal Merrill Lynch reorganization.

                               * * * * * * * * * *

                 To the best of the knowledge and belief of the
                 undersigned, the information contained in this
                        report is accurate and complete.


                               Michael L. Pungello
                             Chief Financial Officer
                         MLIM Alternative Strategies LLC
                           Commodity Pool Operator of
                            ML Millburn Global L.L.C.

                                       10
<Page>

                            ML JWH FINANCIAL AND
                            METALS PORTFOLIO L.L.C.
                            (A DELAWARE LIMITED LIABILITY COMPANY)


                            Financial Statements for the years ended
                            December 31, 2002 and 2001 and Independent
                            Auditors' Report

[MERRILL LYNCH LOGO]

<Page>

ML JWH FINANCIAL AND METALS PORTFOLIO L.L.C.
(A Delaware Limited Liability Company)

TABLE OF CONTENTS
--------------------------------------------------------------------------------

<Table>
<Caption>
                                                                            Page
                                                                            ----
<S>                                                                         <C>
INDEPENDENT AUDITORS' REPORT                                                   1

FINANCIAL STATEMENTS FOR THE YEARS ENDED
  DECEMBER 31, 2002 AND 2001:

  Statements of Financial Condition                                            2

  Statements of Income                                                         3

  Statements of Changes in Member's Capital                                    4

  Notes to Financial Statements                                             5-10
</Table>

<Page>

INDEPENDENT AUDITORS' REPORT


To the Members of
  ML JWH Financial and Metals Portfolio L.L.C.:

We have audited the accompanying statements of financial condition of ML JWH
Financial and Metals Portfolio L.L.C. (the "Company") as of December 31, 2002
and 2001, and the related statements of income and of changes in member's
capital for the years then ended. These financial statements are the
responsibility of the Company's management. Our responsibility is to express an
opinion on these financial statements based on our audits.

We conducted our audits in accordance with auditing standards generally accepted
in the United States of America. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.

In our opinion, such financial statements present fairly, in all material
respects, the financial position of ML JWH Financial and Metals Portfolio L.L.C.
as of December 31, 2002 and 2001, and the results of its operations and changes
in its member's capital for the years then ended in comformity with accounting
principles generally accepted in the United States of America.


DELOITTE & TOUCHE LLP


New York, New York
March 3, 2003

<Page>

ML JWH FINANCIAL AND METALS PORTFOLIO L.L.C.
(A Delaware Limited Liability Company)

STATEMENTS OF FINANCIAL CONDITION
DECEMBER 31, 2002 AND 2001
--------------------------------------------------------------------------------

<Table>
<Caption>
                                                           2002          2001
                                                       ------------  ------------
<S>                                                    <C>           <C>
ASSETS

Equity in commodity futures trading accounts:
    Cash and option premiums                           $ 14,002,855  $ 12,966,697
    Net unrealized profit on open contracts (Note 2)      1,392,986       705,173
Due from Invested Fund                                      166,783             -
Accrued interest (Note 4)                                    15,204        20,150
                                                       ------------  ------------

                TOTAL                                  $ 15,577,828  $ 13,692,020
                                                       ============  ============

LIABILITIES AND MEMBER'S CAPITAL

LIABILITIES:

    Brokerage commissions payable (Note 4)             $    110,199  $     96,844
    Administrative fees payable (Note 4)                      3,241         2,848
    Due to Invested Fund                                          -       514,487
                                                       ------------  ------------

            Total liabilities                               113,440       614,179
                                                       ------------  ------------

MEMBER'S CAPITAL:
    Voting Member                                        15,464,388    13,077,841
                                                       ------------  ------------

            Total Member's capital                       15,464,388    13,077,841
                                                       ------------  ------------

                TOTAL                                  $ 15,577,828  $ 13,692,020
                                                       ============  ============
</Table>

See notes to financial statements.

                                      - 2 -
<Page>

ML JWH FINANCIAL AND METALS PORTFOLIO L.L.C.
(A Delaware Limited Liability Company)

STATEMENTS OF INCOME
FOR THE YEARS ENDED DECEMBER 31, 2002 AND 2001
--------------------------------------------------------------------------------

<Table>
<Caption>
                                                                   2002        2001
                                                               ------------ ------------
<S>                                                            <C>          <C>
REVENUES

Trading profit (loss):
    Realized  (Note 6)                                         $  6,162,488 $  3,553,847
    Change in unrealized                                            740,032   (2,197,366)
                                                               ------------ ------------

        Total trading results                                     6,902,520    1,356,481

Interest income (Note 4)                                            226,525      532,677
                                                               ------------ ------------

        Total revenues                                            7,129,045    1,889,158
                                                               ------------ ------------

EXPENSES

Brokerage commissions (Note 4)                                    1,226,461    1,288,763
Profit Shares (Note 5)                                              638,692            -
Administrative fees (Note 4)                                         36,072       37,905
                                                               ------------ ------------

        Total expenses                                            1,901,225    1,326,668
                                                               ------------ ------------

NET INCOME                                                     $  5,227,820 $    562,490
                                                               ============ ============
</Table>

See notes to financial statements.

                                      - 3 -
<Page>

ML JWH FINANCIAL AND METALS PORTFOLIO L.L.C.
(A Delaware Limited Liability Company)

STATEMENTS OF CHANGES IN MEMBER'S CAPITAL
FOR THE YEARS ENDED DECEMBER 31, 2002 AND 2001
--------------------------------------------------------------------------------

<Table>
<Caption>
                                                     VOTING MEMBER
                                                     ------------
<S>                                                  <C>
MEMBER'S CAPITAL,
  DECEMBER 31, 2000                                  $ 15,281,744

Net income                                                562,490

Withdrawals                                            (2,766,393)
                                                     ------------

MEMBER'S CAPITAL,
  DECEMBER 31, 2001                                    13,077,841

Net income                                              5,227,820

Withdrawals                                            (2,841,273)
                                                     ------------

MEMBER'S CAPITAL,
  DECEMBER 31, 2002                                  $ 15,464,388
                                                     ============
</Table>

See notes to financial statements.

                                      - 4 -
<Page>

ML JWH FINANCIAL AND METALS PORTFOLIO L.L.C.
(A Delaware Limited Liability Company)

NOTES TO FINANCIAL STATEMENTS
--------------------------------------------------------------------------------

1.   SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

     ORGANIZATION

     ML JWH Financial and Metals Portfolio L.L.C. (the "Company") was organized
     under the Delaware Limited Liability Company Act on September 19, 1996 and
     commenced trading activities on October 1, 1996. The Company engages in the
     speculative trading of futures, options on futures and forward contracts on
     a wide range of commodities. John W. Henry & Company, Inc. ("JWH(R)") is
     the trading advisor to the Company. MLIM Alternative Strategies LLC ("MLIM
     AS LLC"), a wholly-owned subsidiary of Merrill Lynch Investment Managers,
     LP ("MLIM"), which, in turn, is an indirect wholly-owned subsidiary of
     Merrill Lynch & Co., Inc. ("Merrill Lynch"), has been delegated
     administrative authority over the Company. Merrill Lynch, Pierce, Fenner &
     Smith Incorporated ("MLPF&S") is the Company's commodity broker. The
     Company has authorized two classes of Membership Interests: Non-Voting
     Interests and Voting Interests (collectively, "Interests"). These two
     classes of Interests have common economic interests in the Company, but the
     Non-Voting Interests, which can be held by non-United States investment
     funds sponsored by MLIM AS LLC, would not participate in the management of
     the Company, or engage, directly or indirectly in, participate in or
     control any portion of the business activities or affairs of the Company.
     Currently, there are no Non-Voting Members. Management of the Company is
     vested solely in the Voting Interests, which are held by United States
     limited partnerships. Currently, there is only one Voting Member of the
     Company. The Voting Member controls all business activities and affairs of
     the Company subject to the trading authority vested in and delegated to
     JWH(R) and the administrative authority vested in and delegated to MLIM AS
     LLC. The Voting Member is a "commodity pool" sponsored and managed by MLIM
     AS LLC.

     ESTIMATES

     The preparation of financial statements in conformity with accounting
     principles generally accepted in the United States of America requires
     management to make estimates and assumptions that affect the reported
     amounts of assets and liabilities and disclosure of contingent assets and
     liabilities at the date of the financial statements as well as the reported
     amounts of revenues and expenses during the reporting period. Actual
     results could differ from those estimates.

     REVENUE RECOGNITION

     Commodity futures, options on futures and forward contract transactions are
     recorded on the trade date and open contracts are reflected in net
     unrealized profit on open contracts in the Statements of Financial
     Condition at the difference between the original contract value and the
     market value (for those commodity interests for which market quotations are
     readily available) or at fair value. The change in unrealized profit on
     open contracts from one period to the next is reflected in Change in
     unrealized under Trading profit (loss), in the Statements of Income.

                                      - 5 -
<Page>

     FOREIGN CURRENCY TRANSACTIONS

     The Company's functional currency is the U.S. dollar; however, it transacts
     business in currencies other than the U.S. dollar. Assets and liabilities
     denominated in currencies other than the U.S. dollar are translated into
     U.S. dollars at the rates in effect at the dates of the Statements of
     Financial Condition. Income and expense items denominated in currencies
     other than the U.S. dollar are translated into U.S. dollars at the rates in
     effect during the period. Gains and losses resulting from the translation
     to U.S. dollars are reported in total trading results currently.

     OPERATING EXPENSES

     MLIM AS LLC pays for all operating costs (including all legal, accounting,
     printing, postage and similar administrative expenses) of the Company.

     INCOME TAXES

     No provision for income taxes has been made in the accompanying financial
     statements as the Member is individually responsible for reporting income
     or loss based on such Member's respective share of the Company's income and
     expenses as reported for income tax purposes.

     DISTRIBUTIONS

     No distributions have been made by the Company for the years ended December
     31, 2002 or 2001.

     WITHDRAWALS

     The Member may withdraw some or all of such Member's capital at the Net
     Asset Value as of the close of business on any business day. There are no
     withdrawal fees or charges.

     DISSOLUTION

     The Company will terminate on September 30, 2046 or at an earlier date if
     certain conditions occur, as well as under certain other circumstances as
     set forth in the Organization Agreement.

                                      - 6 -
<Page>

2.   CONDENSED SCHEDULE OF INVESTMENTS

      The Company's investments, defined as Net unrealized profit on open
      contracts on the Statements of Financial Condition, as of December 31,
      2002 and 2001 are as follows:

<Table>
<Caption>
2002                                 LONG POSITIONS                              SHORT POSITIONS
----                                 --------------                              ---------------
                                                                                                       NET UNREALIZED
COMMODITY INDUSTRY   NUMBER OF    UNREALIZED     PERCENT OF   NUMBER OF     UNREALIZED    PERCENT OF   PROFIT(LOSS) ON   PERCENT OF
      SECTOR         CONTRACTS   PROFIT (LOSS)   NET ASSETS   CONTRACTS    PROFIT (LOSS)  NET ASSETS   OPEN POSITIONS    NET ASSETS
------------------   ---------   -------------   ----------   ----------   ------------   ----------   ---------------   -----------
<S>                  <C>         <C>                  <C>     <C>          <C>                 <C>     <C>                    <C>
Currencies           55,468      $     932,980         6.03%  (1,164,884)  $   (307,663)       -1.99%  $       625,317        4.04%
Interest rates          690            697,359         4.51%           -              -         0.00%          697,359        4.51%
Metals                  167             81,485         0.53%         (67)       (26,581)       -0.17%           54,904        0.36%
Stock indices            10             (5,600)       -0.04%          (7)        21,006         0.14%           15,406        0.10%
                                 -------------                             ------------                ---------------

Total                            $   1,706,224        11.03%               $   (313,238)       -2.02%  $     1,392,986        9.01%
                                 =============                             ============                ===============
</Table>

<Table>
<Caption>
2001                                 LONG POSITIONS                 SHORT POSITIONS
----                                 --------------                 ---------------           NET UNREALIZED
                                UNREALIZED      PERCENT OF     UNREALIZED      PERCENT OF    PROFIT (LOSS) ON    PERCENT OF
COMMODITY INDUSTRY SECTOR     PROFIT (LOSS)     NET ASSETS    PROFIT (LOSS)    NET ASSETS     OPEN POSITIONS     NET ASSETS
-------------------------     -------------     ----------    -------------    ----------    ----------------    ----------
<S>                           <C>                    <C>      <C>                   <C>      <C>                      <C>
Currencies                    $      (13,861)        -0.11%   $     795,456          6.08%   $        781,595          5.98%
Interest rates                        (5,638)        -0.04%         149,812          1.15%            144,174          1.10%
Metals                               (82,135)        -0.63%        (146,751)        -1.12%           (228,886)        -1.75%
Stock indices                          8,290          0.06%             -            0.00%              8,290          0.06%
                              --------------                  -------------                  ----------------

Total                         $      (93,344)        -0.71%   $     798,517          6.11%   $        705,173          5.39%
                              ==============                  =============                  ================
</Table>

     No individual contract comprised greater than 5% of the Partnership's net
     assets during 2002 or 2001.

                                      - 7 -
<Page>

3.  FINANCIAL DATA HIGHLIGHTS

     The following ratios have been derived from information provided in the
     financial statements for the year ended December 31, 2002.

<Table>
     <S>                                               <C>
     Total investment return, compounded
     monthly                                           41.40%
                                              ===============

     RATIOS TO AVERAGE NET ASSETS:
     Expenses                                          13.79%
                                              ===============

     Net income                                        37.92%
                                              ===============
</Table>

4. RELATED PARTY TRANSACTIONS

     The Company's U.S. dollar assets are maintained at MLPF&S. On assets held
     in U.S. dollars, Merrill Lynch credits the Company with interest at the
     prevailing 91-day U.S. Treasury bill rate. The Company is credited with
     interest on any of its assets and net gains actually held by Merrill Lynch
     in non-U.S. dollar currencies at a prevailing local rate received by
     Merrill Lynch. Merrill Lynch may derive certain economic benefit, in excess
     of the interest which Merrill Lynch pays to the Company, from possession of
     such assets.

     Merrill Lynch charges the Company Merrill Lynch's cost of financing
     realized and unrealized losses on the Company's non-U.S. dollar-denominated
     positions.

     Following the allocation of the Company's trading profit (loss) and
     interest income among the Member's respective capital accounts, MLIM AS LLC
     calculates the brokerage commissions, Profit Shares, administrative fees
     and other expenses due from the Company to third parties. Such commissions,
     fees, Profit Shares and expenses are specifically calculated for the Member
     as of the end of each accounting period and deducted from Member's capital
     account and paid out by the Company. The Company currently pays brokerage
     commissions to MLPF&S at flat monthly rate of 0.708 of 1% (an 8.5% annual
     rate).

     The Company pays MLPF&S a monthly administrative fee of 0.021 of 1% (a
     0.25% annual rate) of each Member's month-end assets. Month-end assets
     are not reduced for purposes of calculating brokerage commissions and
     administrative fees by any accrued brokerage commissions, administrative
     fees, Profit Shares or other fees or charges.

     MLPF&S pays the Advisor an annual consulting fee of 2% of the Company's
     average month-end assets, after reduction for a portion of the brokerage
     commissions.

                                      - 8 -
<Page>

5.  ADVISORY AGREEMENT

     The Advisory Agreement between the Company and JWH(R) is in effect for
     successive one-year terms, but, in fact, given the single advisor structure
     of the Company, the Company would terminate were JWH(R) to withdraw. JWH(R)
     determines the commodity futures, options on futures and forward contract
     trades to be made on behalf of the Company, subject to certain Company
     trading policies and to certain rights reserved by MLIM AS LLC.

     The Company pays to JWH(R) a quarterly Profit Share equal to 20%, of any
     New Trading Profit, as defined, attributable to the Member's respective
     capital accounts. Profit Shares are calculated separately in respect of the
     Member's respective capital accounts. Profit Shares are determined as of
     the end of each calendar quarter and are also paid to JWH(R) upon the
     withdrawal of capital from the Company by a Member for whatever purpose,
     other than to pay expenses.

6.  COPPER SETTLEMENT

     The Company, as a member of a class of plaintiffs, received a settlement
     payment in August 2002 relating to certain copper trades made by a number
     of investors, including the Company, during a period in the mid-1990s.
     Members of the class were those who purchased or sold Comex copper
     fixtures or options contracts between June 24, 1993 and June 15, 1996. The
     amount of the settlement of the Company was $52,129, which is included in
     the realized profit of the Company. The effect of the settlement payment
     was included in the Company's performance in August 2002.

7.  FAIR VALUE AND OFF-BALANCE SHEET RISK

     The nature of this Company has certain risks, which can not be presented on
     the financial statements. The following summarizes some of those risks.

     MARKET RISK

     Derivative instruments involve varying degrees of off-balance sheet market
     risk, and changes in the level or volatility of interest rates, foreign
     currency exchange rates or the market values of the underlying financial
     instruments or commodities underlying such derivative instruments
     frequently result in changes in the Company's net unrealized profit on such
     derivative instruments as reflected in the Statements of Financial
     Condition. The Company's exposure to market risk is influenced by a number
     of factors, including the relationships among the derivative instruments
     held by the Company as well as the volatility and liquidity in the markets
     in which such derivative instruments are traded.

     MLIM AS LLC has procedures in place intended to control market risk
     exposure, although there can be no assurance that they will, in fact,
     succeed in doing so. These procedures focus primarily on monitoring the
     trading of JWH(R), calculating the Net Asset Value of the Company and of
     the Member's respective capital accounts as of the close of business on
     each day and reviewing outstanding positions for over-concentrations. While
     MLIM AS LLC does not itself intervene in the markets to hedge or diversify
     the Company's market exposure, MLIM AS LLC may consult with JWH(R)
     concerning the possibility of JWH(R) reducing trading leverage or market
     concentrations. However, such interventions are unusual. Except in cases in
     which it appears that JWH(R) has begun to deviate from past practice and
     trading policies or to be trading erratically, MLIM AS LLC's basic risk
     control procedures consist simply of the ongoing process of advisor
     monitoring with the market risk controls being applied by JWH(R).

                                      - 9 -
<Page>

     CREDIT RISK

     The risks associated with exchange-traded contracts are typically perceived
     to be less than those associated with over-the-counter
     (non-exchange-traded) transactions, because exchanges typically (but not
     universally) provide clearinghouse arrangements in which the collective
     credit (in some cases limited in amount, in some cases not) of the members
     of the exchange is pledged to support the financial integrity of the
     exchange. In over-the-counter transactions, on the other hand, traders must
     rely solely on the credit of their respective individual counterparties.
     Margins, which may be subject to loss in the event of a default, are
     generally required in exchange trading, and counterparties may require
     margin in the over-the-counter markets for the years ended December 31,
     2002 and 2001.

     The credit risk associated with these instruments from counterparty
     nonperformance is the net unrealized profit, if any, included in the
     Statements of Financial Condition. The Company attempts to mitigate this
     risk by dealing exclusively with Merrill Lynch entities as clearing
     brokers.

     The Company, in its normal course of business, enters into various
     contracts, with MLPF&S acting as its commodity broker. Pursuant to the
     brokerage agreement with MLPF&S (which includes a netting arrangement), to
     the extent that such trading results in receivables from and payables to
     MLPF&S, these receivables and payables are offset and reported as a net
     receivable or payable and included in the Statements of Financial Condition
     under Equity in commodity futures accounts.

8.   SUBSEQUENT EVENT

     As of February 28, 2003, the general partner of the Partnership changed its
     name from MLIM Alternative Strategies LLC to Merrill Lynch Alternative
     Investments LLC as part of an internal Merrill Lynch reorganization.

                                * * * * * * * * *

                 To the best of the knowledge and belief of the
                 undersigned, the information contained in this
                        report is accurate and complete.


                               Michael L. Pungello
                             Chief Financial Officer
                         MLIM Alternative Strategies LLC
                             Commodity Pool Operator
                  ML JWH Financial and Metals Portfolio L.L.C.

                                     - 10 -