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                             ML MULTI-MANAGER PORTFOLIO LLC
                             (A DELAWARE LIMITED LIABILITY COMPANY)


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


[MERRILL LYNCH LOGO]

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ML MULTI-MANAGER PORTFOLIO LLC
(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 Members' Capital                                  4

  Notes to Financial Statements                                            5-9
</Table>

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INDEPENDENT AUDITORS' REPORT


To the Members of
 ML Multi-Manager Portfolio LLC:

We have audited the accompanying statements of financial condition of ML
Multi-Manager Portfolio LLC (the "Company") as of December 31, 2002 and 2001,
and the related statements of income and of changes in members' 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 Multi-Manager Portfolio LLC as of
December 31, 2002 and 2001, and the results of its operations and changes in its
members' 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

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ML MULTI-MANAGER PORTFOLIO LLC
(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                                          $   172,773,081      $   205,396,650
  Net unrealized profit on open contracts (Note 2)                        4,530,324            2,077,539
Accrued interest (Note 4)                                                   182,180              314,001
                                                                   -----------------    -----------------

        TOTAL                                                       $   177,485,585      $   207,788,190
                                                                   =================    =================

LIABILITIES AND MEMBERS' CAPITAL

LIABILITIES:

  Brokerage commissions payable (Note 4)                            $       618,102      $       967,361
  Profit Shares payable (Note 5)                                          1,400,129              685,683
  Administrative fees payable (Note 4)                                       22,373               32,650
  Due to Members                                                          1,990,503            4,638,713
                                                                   -----------------    -----------------

     Total liabilities                                                    4,031,107            6,324,407
                                                                   -----------------    -----------------

MEMBERS' CAPITAL:

  Voting Members                                                        173,454,478          201,463,783
                                                                   -----------------    -----------------

     Total Members' capital                                             173,454,478          201,463,783
                                                                   -----------------    -----------------

        TOTAL                                                       $   177,485,585      $   207,788,190
                                                                   =================    =================
</Table>

See notes to financial statements.

                                        2
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ML MULTI-MANAGER PORTFOLIO LLC
(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)                                $   9,241,162       $   26,679,581
  Change in unrealized                                 2,453,406          (11,977,991)
Proceeds from Copper Settlement                        1,176,518                    -
                                                  ---------------     ----------------

     Total trading results                            12,871,086           14,701,590

Interest income (Note 4)                               3,079,716            8,234,444
                                                  ---------------     ----------------

     Total revenues                                   15,950,802           22,936,034
                                                  ---------------     ----------------

EXPENSES

Brokerage commissions (Note 4)                         7,738,731           14,316,819
Profit Shares (Note 5)                                 2,301,983            2,968,452
Administrative fees (Note 4)                             279,753              471,194
                                                  ---------------     ----------------

     Total expenses                                   10,320,467           17,756,465
                                                  ---------------     ----------------

NET INCOME                                         $   5,630,335       $    5,179,569
                                                  ===============     ================
</Table>

See notes to financial statements.

                                        3
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ML MULTI-MANAGER PORTFOLIO LLC
(A Delaware Limited Liability Company)

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

<Table>
<Caption>
                                VOTING MEMBERS
                               ----------------
<S>                             <C>
MEMBERS' CAPITAL,
  DECEMBER  31, 2000               247,611,967

Additions                            1,788,034

Net income                           5,179,569

Withdrawals                        (53,115,787)
                               ----------------

MEMBERS' CAPITAL,
  DECEMBER  31, 2001            $  201,463,783

Additions                            2,491,994

Net income                           5,630,335

Withdrawals                        (36,131,634)
                               ----------------

MEMBERS' CAPITAL,
  DECEMBER  31, 2002            $  173,454,478
                               ================
</Table>

See notes to financial statements.

                                        4
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ML MULTI-MANAGER PORTFOLIO LLC
(A Delaware Limited Liability Company)

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

1.  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

    Organization

    ML Multi-Manager Portfolio LLC (the "Company") was organized under the
    Delaware Limited Liability Company Act on May 11, 1998 and commenced trading
    activities on June 1, 1998. The Company engages in the speculative trading
    of futures, options on futures, forwards and options on forward contracts on
    a wide range of commodities. 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
    one class of Membership Interests, Voting Interests. Voting Interests are
    held by multi-advisor funds managed by MLIM AS LLC ("The Members"). The
    Members control all business activities and affairs of the Company by
    agreement of the majority interest of the Members, subject to the
    discretionary trading authority vested in and delegated to the independent
    trading advisors (the "Advisors") and the administrative authority vested in
    and delegated to MLIM AS LLC. Each Member is a "commodity pool" sponsored
    and controlled by MLIM AS LLC and shares in the trading results of the
    Company in proportion to its respective capital account.

    MLIM AS LLC selects independent advisors to manage the Company's assets, and
    allocates and reallocates the Company's assets among existing, replacement
    and additional Advisors.

    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 and 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, forwards and options on forward
    contracts 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.

    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 date 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.

                                        5
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    Income Taxes

    No provision for income taxes has been made in the accompanying financial
    statements as each 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

    The Members are entitled to receive any distributions which may be made by
    the Company in proportion to their respective capital accounts. No such
    distributions have been declared for the years ended December 31, 2002 or
    2001.

    Withdrawals

    Each 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 of the Company

    The Company will terminate on December 31, 2028 or at an earlier date if
    certain conditions occur, as well as under certain other circumstances as
    set forth in the Organization Agreement.

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>
                                                LONG POSTIONS                                 SHORT POSITIONS
                                                -------------                                 ---------------
        2002                   NUMBER         UNREALIZED    PERCENT OF      NUMBER         UNREALIZED      PERCENT OF
COMMODITY INDUSTRY SECTOR   OF CONTRACTS    PROFIT (LOSS)   NET ASSETS   OF CONTRACTS     PROFIT (LOSS)    NET ASSETS
-------------------------   ------------    -------------   ----------   ------------    ---------------   ----------
<S>                           <C>           <C>                 <C>        <C>           <C>                   <C>
Agriculture                       1,263     $    258,170         0.15%        (1,361)     $      348,188         0.20%
Currencies                    2,193,248        2,945,181         1.70%    (3,207,564)         (1,592,929)       -0.92%
Energy                              346           60,714         0.04%            (4)               (160)        0.00%
Interest rates                    3,621        2,599,914         1.50%          (370)           (226,998)       -0.13%
Metals                              566           97,101         0.06%          (260)             34,845         0.02%
Stock indices                        57          (51,080)       -0.03%          (176)             57,378         0.03%
                                            -------------                                ---------------
Total  2002                                 $  5,910,000         3.41%                   $   (1,379,676)        -0.80%
                                            =============                                ===============

<Caption>
                                      NET UNREALIZED
        2002                         PROFIT (LOSS) ON   PERCENT OF
COMMODITY INDUSTRY SECTOR             OPEN POSITIONS    NET ASSETS
-------------------------             --------------    ----------
<S>                                  <C>                      <C>
Agriculture                          $      606,358           0.35%
Currencies                                1,352,252           0.78%
Energy                                       60,554           0.03%
Interest rates                            2,372,916           1.37%
Metals                                      131,946           0.08%
Stock indices                                 6,298           0.00%
                                     ---------------
Total  2002                          $    4,530,324           2.61%
                                     ===============
</Table>

<Table>
<Caption>
                                              LONG POSTIONS                  SHORT POSITIONS
                                              -------------                  ---------------        NET UNREALIZED
        2001                    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>
Agriculture                     $    (98,523)       -0.05%      $    278,886         0.14%         $        180,363         0.09%
Currencies                          (518,547)       -0.26%         3,164,842         1.57%                2,646,295         1.31%
Energy                                (8,555)        0.00%          (109,665)       -0.05%                 (118,220)       -0.06%
Interest rates                      (310,862)       -0.15%           159,725         0.08%                 (151,137)       -0.08%
Metals                              (227,476)       -0.11%          (421,110)       -0.21%                 (648,586)       -0.32%
Stock indices                        151,168         0.08%            17,656         0.01%                  168,824         0.08%
                                ---------------               ----------------                    ------------------

Total  2001                     $ (1,012,795)       -0.50%      $  3,090,334         1.53%         $      2,077,539         1.03%
                                ===============                ================                   ==================

</Table>

    No individual contract comprises greater than 5% of the Company's net
    assets.

                                        6
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3.  FINANCIAL DATA HIGHLIGHTS

<Table>
    <S>                                                   <C>
    Total investment return, compounded monthly           3.30%
                                                      ==========

    RATIO TO AVERAGE NET ASSETS:

    Expenses                                              5.51%
                                                      ==========

    Net income                                            3.00%
                                                      ==========
</Table>

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

4.  RELATED PARTY TRANSACTIONS

    Currently, all of 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 the 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 and interest income
    among the Members' Capital Accounts, MLIM AS LLC calculates the brokerage
    commissions, Profit Shares, administrative fees and other expenses due from
    the Company to third parties, relating to the Company's trading on behalf of
    the Members. Such brokerage commissions, fees and expenses are specifically
    allocated to each member as of the end of each accounting period (not pro
    rata based on the Members' respective capital accounts) to, and deducted
    from, the Members' capital accounts and paid out by the Company. The Company
    pays brokerage commissions to MLPF&S at a flat monthly rate reflecting the
    fee arrangement between each Member and MLPF&S. For the years ended December
    31, 2002 and 2001, the monthly rates for Members ranged from .291 of 1% (a
    3.50% annual rate) to .729 of 1% (an 8.75% annual rate) of each Member's
    month-end assets invested in the Company.

    The Company pays MLIM AS LLC a monthly administrative fee ranging from .021
    of 1% (a 0.25% annual rate) to .083 of 1% (a 1.00% 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 Advisors annual Consulting Fees up to 2.5% of the Company's
    average month-end assets allocated to them for management after reduction
    for a portion of the brokerage commissions.

5.  ADVISORY AGREEMENTS

    Pursuant to the Advisory Agreements among the Advisors, the Company and MLIM
    AS LLC, the Advisors determine the commodity futures, options on futures,
    forwards and options on forward contracts traded on behalf of the Company,
    subject to certain rights reserved by MLIM AS LLC. The Advisory Agreements
    generally renew one year after they are entered into, subject to certain
    renewal rights exercisable by the Company.

    The Company pays, from the Capital Account of each Member, to the Advisors
    quarterly or annual Profit Shares generally ranging from 20% to 25% of any
    New Trading Profit, as defined, recognized by each Advisor, attributable to
    each Member's Capital Account, considered individually irrespective of

                                        7
<Page>

    the overall performance of the such Member's Capital Account. Profit Shares,
    which are calculated separately in respect of each Member's Capital Account,
    are determined as of the end of each calendar quarter or year and are also
    paid to each Advisor upon the withdrawal of capital from the Company by a
    Member for whatever purpose, other than to pay expenses and upon the
    reallocation of assets away from an Advisor.

6.  COPPER SETTLEMENT

    The Members, as parties of a class of plaintiffs, received a settlement
    payment in August relating to certain copper trades made by a number of
    investors, including the Members, during a period in the mid-1990's. Parties
    of the class were those who purchased or sold Comex copper futures or
    options contracts between June 24, 1993 and June 15, 1996. The amount of the
    settlement was paid to MM LLC on behalf of each member, based upon each
    Member's individual investment activity related to Comex copper futures or
    options. The effect of the settlement was included in the Company's
    performance in August.

7.  FAIR VALUE AND OFF-BALANCE SHEET RISK

    The nature of this Company has certain risks, which cannot 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. Changes in the level or volatility of interest rates, foreign currency
    exchange rates or the market values of the 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 of the markets in which the
    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 the Advisors, calculating the Net Asset Value of the Company 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
    urge the Advisors to reallocate positions in an attempt to avoid
    over-concentrations. However, such interventions are unusual. Except in
    cases in which it appears that the Advisors have begun to deviate from past
    practice or 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 the
    Advisors themselves.

    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 also require margin in the
    over-the-counter markets.

                                        8
<Page>

    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 almost 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 Equity in commodity futures
    trading accounts in the Statements of Financial Condition.

8.  SUBSEQUENT EVENTS

    As of February 28, 2003, the administrative authority of the Company and the
    management authority of the Members was assigned from MLIM AS LLC to Merrill
    Lynch Investment Managers, LLC, a wholly-owned subsidiary of MLIM, as part
    of an internal Merrill Lynch reorganization. This change will not affect the
    personnel involved in the management of the Company. The change will not
    have an impact on the Company's investors.


                                 * * * * * * * *

                 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 Multi-Manager Portfolio LLC

                                       9