<Page>

                                 ML PRINCIPAL PROTECTION L.P.
                                 (A DELAWARE LIMITED PARTNERSHIP)

                                 Consolidated Financial Statements for the
                                 years ended December 31, 2003, 2002 and 2001
                                 and Independent Auditors' Report

[Merrill Lynch LOGO]

<Page>

ML PRINCIPAL PROTECTION L.P.
(A DELAWARE LIMITED PARTNERSHIP)


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

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

CONSOLIDATED FINANCIAL STATEMENTS:

 Consolidated Statements of Financial Condition as of December 31, 2003 and 2002                                     2

 Consolidated Statements of Income for the years ended December 31, 2003, 2002 and 2001                              3

 Consolidated Statements of Changes in Partners' Capital for the years ended December 31, 2003,
    2002 and 2001                                                                                                    4

 Financial Data Highlights for the year ended December 31, 2003                                                      5

 Notes to Consolidated Financial Statements                                                                       6-13
</Table>

<Page>

INDEPENDENT AUDITORS' REPORT


To the Partners of
 ML Principal Protection L.P.:

We have audited the accompanying consolidated statements of financial condition
of ML Principal Protection L.P. (the "Partnership") as of December 31, 2003 and
2002, and the related consolidated statements of income and of changes in
partners' capital for each of the three years in the period ended December 31,
2003, and the financial data highlights for the year ended December 31, 2003.
These financial statements and financial data highlights are the responsibility
of the Partnership's management. Our responsibility is to express an opinion on
these financial statements and financial data highlights 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 and financial data highlights 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 consolidated financial statements and financial data
highlights present fairly, in all material respects, the financial position of
ML Principal Protection L.P. as of December 31, 2003 and 2002, and the results
of its operations, changes in its partners' capital, and the financial data
highlights for each of the periods presented in conformity with accounting
principles generally accepted in the United States of America.


DELOITTE & TOUCHE LLP


New York, New York
March 10, 2004

<Page>

ML PRINCIPAL PROTECTION L.P.
 (A DELAWARE LIMITED PARTNERSHIP)

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
DECEMBER 31, 2003 AND 2002
--------------------------------------------------------------------------------

<Table>
<Caption>
                                                               2003          2002
                                                           ------------  ------------
<S>                                                        <C>           <C>
ASSETS

Equity in commodity futures trading accounts:
  Cash and options premiums                                $    503,091  $  1,960,792
Investment in MM LLC (Note 2)                                15,441,696    16,280,408
Accrued interest receivable (Note 3)                                389         2,028
                                                           ------------  ------------

        TOTAL                                              $ 15,945,176  $ 18,243,228
                                                           ============  ============

LIABILITIES AND PARTNERS' CAPITAL

LIABILITIES:
  Redemptions payable (Note 1)                             $    392,038  $    497,074
  Payable to MM LLC (Note 2)                                    111,442       305,592
                                                           ------------  ------------

      Total liabilities                                         503,480       802,666
                                                           ------------  ------------

PARTNERS' CAPITAL:
 General Partners (123,681 and 1,584 Units)                     159,703       185,021
 Limited Partners (11,785,836 and 147,723 Units)             15,281,993    17,255,541
                                                           ------------  ------------

      Total partners' capital                                15,441,696    17,440,562
                                                           ------------  ------------

        TOTAL                                              $ 15,945,176  $ 18,243,228
                                                           ============  ============
</Table>

NET ASSET VALUE PER UNIT (Note 6)

See notes to consolidated financial statements.

                                        2
<Page>

ML PRINCIPAL PROTECTION L.P.
(A DELAWARE LIMITED PARTNERSHIP)

CONSOLIDATED STATEMENTS OF INCOME
FOR THE YEARS ENDED DECEMBER 31, 2003, 2002 AND 2001
--------------------------------------------------------------------------------

<Table>
<Caption>
                                                            2003          2002         2001
                                                         -----------   -----------  -----------
<S>                                                      <C>           <C>          <C>
REVENUES

Trading profit (loss):
  Realized                                               $ 3,053,369   $ 1,544,945  $ 2,827,944
  Change in unrealized                                       (28,995)      404,007   (1,336,518)
  Settlement proceeds (Note 9)                                     -       308,142            -
                                                         -----------   -----------  -----------

    Total trading results                                  3,024,374     2,257,094    1,491,426

Interest income (Note 3)                                     180,856       364,235      847,680
                                                         -----------   -----------  -----------

      Total revenues                                       3,205,230     2,621,329    2,339,106
                                                         -----------   -----------  -----------

EXPENSES

Brokerage commissions (Note 3)                             1,166,016     1,142,131    1,351,049
Administrative fees (Note 3)                                  40,027        38,071       45,035
Profit Shares (Note 5)                                       437,466       273,852      250,522
                                                         -----------   -----------  -----------

      Total expenses                                       1,643,509     1,454,054    1,646,606
                                                         -----------   -----------  -----------

NET INCOME                                               $ 1,561,721   $ 1,167,275  $   692,500
                                                         ===========   ===========  ===========

NET INCOME PER UNIT:

  Weighted average number of General Partner
  and Limited Partner Units outstanding (Note 7)          13,571,725       172,404      214,642
                                                         ===========   ===========  ===========

  Net income per weighted average General Partner
  and Limited Partner Unit                               $    0.1151   $      6.77  $      3.23
                                                         ===========   ===========  ===========
</Table>

Substantially all items of income and expense are derived from the investment in
MM LLC (Note 2).

See notes to consolidated financial statements.

                                        3
<Page>

ML PRINCIPAL PROTECTION L.P.
(A DELAWARE LIMITED PARTNERSHIP)

CONSOLIDATED STATEMENTS OF CHANGES IN PARTNERS' CAPITAL
FOR THE YEARS ENDED DECEMBER 31, 2003, 2002 AND 2001
--------------------------------------------------------------------------------

<Table>
<Caption>
                                                               GENERAL       LIMITED
                                                  UNITS        PARTNER       PARTNERS          TOTAL
                                               ------------   ----------   -------------   -------------
<S>                                              <C>          <C>          <C>             <C>
PARTNERS' CAPITAL,
  DECEMBER 31, 2000                                 242,336   $  298,960   $  26,399,891   $  26,698,851

Net income                                                -       11,088         681,412         692,500

Distributions                                             -       (5,849)       (448,788)       (454,637)

Redemptions                                         (50,791)     (70,299)     (5,561,135)     (5,631,434)
                                               ------------   ----------   -------------   -------------

PARTNERS' CAPITAL,
  DECEMBER 31, 2001                                 191,545      233,900      21,071,380      21,305,280

Net income                                                -       14,013       1,153,262       1,167,275

Distributions                                             -       (2,890)       (232,557)       (235,447)

Redemptions                                         (42,238)     (60,002)     (4,736,544)     (4,796,546)
                                               ------------   ----------   -------------   -------------

PARTNERS' CAPITAL,
  DECEMBER 31, 2002                                 149,307      185,021      17,255,541      17,440,562

Consolidation of shares (Note 6)                 14,633,051           59           5,440           5,499

Net income                                                -       18,243       1,543,478       1,561,721

Distributions                                             -         (653)        (61,634)        (62,287)

Redemptions                                      (2,872,841)     (42,967)     (3,460,832)     (3,503,799)
                                               ------------   ----------   -------------   -------------

PARTNERS' CAPITAL,
  DECEMBER 31, 2003                              11,909,517   $  159,703   $  15,281,993   $  15,441,696
                                               ============   ==========   =============   =============
</Table>

See notes to consolidated financial statements.

                                        4
<Page>

ML PRINCIPAL PROTECTION L.P.
(A DELAWARE LIMITED PARTNERSHIP)

FINANCIAL DATA HIGHLIGHTS
FOR THE YEAR ENDED DECEMBER 31, 2003
--------------------------------------------------------------------------------


The following per Unit data ratios have been derived from information provided
in the financial statements.

<Table>
<Caption>
                                       SERIES A
                                         2003      SERIES G    SERIES H    SERIES O    SERIES P    SERIES Q    SERIES R    SERIES S
<S>                                   <C>         <C>         <C>         <C>         <C>         <C>         <C>         <C>
PER UNIT OPERATING PERFORMANCE:

Net asset value, beginning of period
(Note 6)                              $  1.0000   $  106.25   $  101.65   $  118.17   $  120.55   $  111.44   $  112.54   $  113.44

Realized trading profit                  0.1964       10.15        3.81       23.19       23.66       21.87       22.09       22.27
Change in unrealized trading profit     (0.0007)       5.33        4.18       (0.10)      (0.09)      (0.08)      (0.08)      (0.09)
Interest income                          0.0112        1.15        1.18        1.31        1.33        1.23        1.24        1.25
Expenses                                (0.1054)      (8.56)      (4.99)     (12.67)     (12.90)     (11.94)     (12.03)     (12.11)
                                      ---------------------------------------------------------------------------------------------

Net Asset Value, before distributions    1.1015      114.32      105.83      129.90      132.55      122.52      123.76      124.76
Cash distribution                             -       (3.50)      (3.50)          -           -           -           -           -
                                      ---------------------------------------------------------------------------------------------

Net asset value, end of the period    $  1.1015   $  110.82   $  102.33   $  129.90   $  132.55   $  122.52   $  123.76   $  124.76
                                      =============================================================================================

TOTAL INVESTMENT RETURN,
COMPOUNDED MONTHLY:

Invesment return before Profit Shares     13.03%      10.40%       5.69%      12.74%      12.75%      12.75%      12.74%      12.74%
Profit Shares                             -2.76%      -2.43%      -1.41%      -2.71%      -2.69%      -2.70%      -2.68%      -2.66%

Total investment return                   10.15%       7.85%       4.24%       9.93%       9.96%       9.94%       9.97%       9.99%
                                      =============================================================================================

RATIOS TO AVERAGE NET ASSETS:

Operating expenses (not including
Profit Share                               7.40%       5.49%       3.43%       7.64%       7.57%       7.96%       7.60%       7.57%
Profit Shares                              2.70%       2.30%       1.33%       2.59%       2.61%       2.25%       2.57%       2.58%
                                      ---------   ---------   ---------   ---------   ---------   ---------   ---------   ---------
Expenses                                  10.10%       7.79%       4.76%      10.23%      10.18%      10.21%      10.17%      10.15%
                                      =============================================================================================
</Table>

See notes to consolidated financial statements.

                                        5
<Page>

PRINCIPAL PROTECTION L.P.
(A DELAWARE LIMITED PARTNERSHIP)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
--------------------------------------------------------------------------------
1.  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

    ORGANIZATION

    ML Principal Protection L.P (the "Partnership") was organized as an open-end
    fund under the Delaware Revised Uniform Limited Partnership Act on January
    3, 1994 and commenced trading activities on October 12, 1994. The
    Partnership engages (currently, through a limited liability company (see
    below)) in the speculative trading of futures, options on futures, forwards
    and options on forward contracts on a wide range of commodities. Merrill
    Lynch Investment Managers, LLC ("MLIM LLC") is the general partner of the
    Partnership and is 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"). Merrill Lynch, Pierce, Fenner
    & Smith Incorporated ("MLPF&S") is the Partnership's commodity broker. All
    of the Partnership's assets are held in accounts maintained at MLPF&S. MLIM
    LLC intends to maintain a general partner's interest of at least 1% of the
    total capital in each series of units. MLIM LLC and the Limited Partners
    share in the profits and losses of the Partnership in proportion to the
    respective interests in the Partnership.

    Many of the multi-advisor funds (the "Multi-Advisor Funds") sponsored by
    MLIM LLC, including the Partnership, allocate their assets to a number of
    the same independent advisors (the "Advisors"). These Multi-Advisor Funds
    invest in a limited liability company, ML Multi-Manager Portfolio LLC ("MM
    LLC"), a Delaware limited liability company, which operates a single account
    with each Advisor selected. MM LLC is managed by MLIM LLC, has no investors
    other than the Multi-Advisor Funds and serves solely as the vehicle through
    which the assets of such Multi-Advisor Funds are combined in order to be
    managed through single rather than multiple accounts. The following notes
    relate to the operation of the Partnership through its investment in MM LLC.
    MLIM LLC, on an ongoing basis, may change the number of Multi-Advisor Funds
    investing in MM LLC. As of December 31, 2003, 2002 and 2001, the
    Partnership's percentage of ownership share of MM LLC was 11.02%, 9.39% and
    8.61%, respectively. MLIM LLC selects the Advisors to manage MM LLC's
    assets, and allocates and reallocates such trading assets among existing,
    replacement and additional Advisors.

    The Partnership may issue different series of units of limited partnership
    interest ("Units") generally as of the beginning of each calendar quarter.
    The Partnership is currently not open to new investment. Each series has its
    own Net Asset Value per Unit. All series, regardless of when issued, trade
    through MM LLC, under the direction of the same combination of independent
    advisors (the "Advisors"), chosen from time to time by MLIM LLC to manage
    the trading.

    MLIM LLC may determine what percentage of the Partnership's total capital
    attributable to each series of units to allocate to trading by investing in
    MM LLC, attempting to balance the desirability of reducing the opportunity
    costs of the Partnership's "principal protection" structure against the
    necessity of preventing Merrill Lynch from being required to make any
    payments to the Partnership under the Merrill Lynch guarantee (see Note 8),
    and subject to the requirement that all series issued after May 1, 1997 must
    allocate the same percentage of their capital to trading, through MM LLC.

                                        6
<Page>

    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 (loss) on open contracts in the Statements of
    Financial Condition of MM LLC 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.

    FOREIGN CURRENCY TRANSACTIONS

    The Partnership'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.

    OPERATING EXPENSES AND SELLING COMMISSIONS

    MLIM LLC pays all routine operating costs (including legal, accounting,
    printing, postage and similar administrative expenses) of the Partnership.
    MLIM LLC receives an administrative fee as well as a portion of the
    brokerage commissions paid to MLPF&S by the Partnership through MM LLC (See
    Note 3).

    No selling commissions have been or are paid directly by Limited Partners.
    All selling commissions are paid by MLIM LLC.

    INCOME TAXES

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

    REDEMPTIONS

    A Limited Partner may redeem some or all of such Partner's Units at Net
    Asset Value as of the close of business on the last business day of any
    month upon ten calendar days' notice.

                                        7
<Page>

    DISSOLUTION OF THE PARTNERSHIP

    The Partnership will terminate on December 31, 2024 or at an earlier date if
    certain conditions occur, as well as under certain other circumstances as
    set forth in the Limited Partnership Agreement.

2.  INVESTMENT IN MM LLC

    The financial statements of MM LLC are bound together with this report and
    should be read in conjunction with the Partnership's financial statements.
    The investment in MM LLC is reflected in the financial statements at fair
    value based upon the Partnership's interest in MM LLC. Fair value of the
    investment in MM LLC is equal to the market value of the net assets of MM
    LLC allocable to the Partnership as an investor.

3.  RELATED PARTY TRANSACTIONS.

    The Partnership's U.S. dollar assets are maintained at MLPF&S. On assets
    held in U.S. dollars, Merrill Lynch credits the Partnership with interest at
    the prevailing 91-day U.S. Treasury bill rate. The Partnership is credited
    with interest on any of its 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 benefits, in excess of the
    interest, which Merrill Lynch pays to the Partnership, from possession of
    such assets. The Partnership's U.S. dollar assets invested in MM LLC are
    also maintained at MLPF&S. MLPF&S credits MM LLC with interest in the same
    manner. The Partnership indirectly receives this interest through its
    investment in MM LLC.

    Merrill Lynch charges the Partnership, through MM LLC, Merrill Lynch's cost
    of financing realized and unrealized losses on the Partnership's non-U.S.
    dollar-denominated positions.

    The Partnership pays brokerage commissions to MLPF&S in respect of each
    series of Units at a flat monthly rate of .625 of 1% (a 7.50% annual rate)
    of such series' month-end assets invested in MM LLC except for Series A
    2003. Series A 2003 pays a flat monthly rate of .604 of 1% (a 7.25% annual
    rate). The Partnership also pays MLIM LLC a monthly administrative fee of
    .021 of 1% (a 0.25% annual rate) of the Partnership's total month-end
    assets. Assets committed to trading 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 ranging up to 2.5% of the
    Partnership's average month-end assets allocated to them for management,
    after reduction for a portion of the brokerage commissions accrued with
    respect to such assets.

                                        8
<Page>

4.  ANNUAL DISTRIBUTIONS

    The Partnership makes annual fixed-rate distributions, payable irrespective
    of profitability, of $3.50 per Unit on Units issued prior to May 1, 1997
    until the Principal Assurance Date (see Note 8). The Partnership may also
    pay discretionary distributions on such series of Units of up to 50% of any
    Distributable New Appreciation, as defined on such Units. No distributions
    are payable on Units issued after May 1, 1997. For the years ended December
    31, 2003, 2002 and 2001, the Partnership made the following distributions:

<Table>
<Caption>
                         DISTRIBUTION       FIXED-RATE    DISCRETIONARY
          SERIES             DATE          DISTRIBUTION    DISTRIBUTION
       ------------    ----------------  --------------- -----------------
  <S>                        <C>             <C>                <C>
  2003   Series F            01/01/2003      $      3.50        $      -
         Series G            04/01/2003             3.50               -
         Series H            07/01/2003             3.50               -

  2002
         Series B            01/01/2002      $      3.50        $      -
         Series C            04/01/2002             3.50               -
         Series D            07/01/2002             3.50               -
         Series E            10/01/2002             3.50               -
         Series F            01/01/2002             3.50               -
         Series G            04/01/2002             3.50               -
         Series H            07/01/2002             3.50               -

  2001
         Series A            10/01/2001      $      3.50        $      -
         Series B            01/01/2001             3.50               -
         Series C            04/01/2001             3.50               -
         Series D            07/01/2001             3.50               -
         Series E            10/01/2001             3.50               -
         Series F            01/01/2001             3.50               -
         Series G            04/01/2001             3.50               -
         Series H            07/01/2001             3.50               -
</Table>

5.  ADVISORY AGREEMENTS

    MM LLC and the Advisors have each entered into Advisory Agreements. These
    Advisory Agreements generally renew annually after they are entered into,
    subject to certain rights exercisable by the Partnership. The Advisors
    determine the commodity futures, options on futures, forwards and option on
    forward contract trades to be made on behalf of their respective MM LLC
    accounts, subject to certain rights reserved by MLIM LLC.

    Profit Shares, generally ranging from 20% to 25% of any New Trading Profit,
    as defined, recognized by each Advisor individually, irrespective of the
    overall performance of any series, either as of the end of each calendar
    quarter or year and upon the net reallocation of assets away from an
    Advisor, including unit redemptions, are paid by MM LLC to the appropriate
    Advisors to the extent of the applicable percentage of any New Trading
    Profit attributable to such Units.

                                        9
<Page>

6.  NET ASSET VALUE PER UNIT

    Prior to the opening of business on January 2, 2003, Series A through F and
    K through N, those series whose guarantee had come to term on or before
    December 31, 2002, were consolidated into a new series, Series A 2003, with
    a $1.00 per Unit Net Asset Value. The aggregate Net Asset Value of each
    investor's new Units is equal to the aggregate Net Asset Value of their
    original Units at December 31, 2002. The consolidation had no adverse
    economic effect on the investors. The General Partner contributed $5,499 to
    the Partnership, the amount necessary due to the effects of rounding, to
    insure that all investors received Units equal in value to their original
    holdings at December 31, 2002. The following is a listing of the number of
    new Units each investor received of Series A 2003 for each Unit of their
    original series holding.

<Table>
<Caption>
                       NUMBER
         SERIES       OF UNITS
         ------       --------
      <S>            <C>
      A              122.021960
      B              117.269077
      C              115.242141
      D              112.085339
      E              111.088709
      F              104.084994
      K              123.799970
      L              120.674078
      M              122.310644
      N              117.973383
</Table>

    At December 31, 2003, the Net Asset Values of the different series of Units
    were as follows:

<Table>
<Caption>
                                                   NUMBER         NET ASSET VALUE
                            NET ASSET VALUE       OF UNITS           PER UNIT
                          --------------------------------------------------------
    <S>                    <C>                <C>                      <C>
    Series A 2003 Units    $  13,096,718      11,889,700.0000          $   1.1015
    Series G Units               415,800           3,752.0300              110.82
    Series H Units               495,479           4,842.1050              102.33
    Series O Units               599,734           4,616.7419              129.90
    Series P Units               251,706           1,899.0000              132.55
    Series Q Units                77,950             636.2408              122.52
    Series R Units               445,046           3,596.0000              123.76
    Series S Units                59,263             475.0000              124.76
                           -------------      ---------------
                           $  15,441,696      11,909,517.1177
                           =============      ===============
</Table>

                                       10
<Page>

    At December 31, 2002, the Net Asset Values of the different series of Units
    were as follows:

<Table>
<Caption>
                                                    NUMBER        NET ASSET VALUE
                         NET ASSET VALUE           OF UNITS           PER UNIT
                       ----------------------------------------------------------
    <S>                     <C>                  <C>                    <C>
    Series A Units          $  4,554,926          37,329.0000           $  122.02
    Series B Units               361,036           3,079.0000              117.26
    Series C Units               754,685           6,550.0000              115.22
    Series D Units             2,324,762          20,741.0000              112.09
    Series E Units             1,327,640          11,951.4800              111.09
    Series F Units               829,625           7,711.3400              107.58
    Series G Units               585,224           5,508.0300              106.25
    Series H Units               547,940           5,390.6650              101.65
    Series K Units             2,302,631          18,619.0000              123.67
    Series L Units             1,390,508          11,536.2800              120.53
    Series M Units               726,816           5,946.4607              122.23
    Series N Units               207,135           1,757.6778              117.85
    Series O Units               624,977           5,288.7419              118.17
    Series P Units               228,921           1,899.0000              120.55
    Series Q Units               185,883           1,667.9408              111.44
    Series R Units               433,969           3,856.0000              112.54
    Series S Units                53,884             475.0000              113.44
                          --------------      ---------------
                           $  17,440,562         149,306.6162
                          ==============      ===============
</Table>

7.  WEIGHTED AVERAGE UNITS

    Weighted average number of Units outstanding was computed for purposes of
    computing consolidated net income per weighted average Unit. The weighted
    average number of Units outstanding for the years ended December 31, 2003,
    2002 and 2001 equals the Units outstanding as of such date, adjusted
    proportionately for Units redeemed or issued based on the respective length
    of time each was outstanding during the year.

8.  MERRILL LYNCH & CO., INC. GUARANTEE

    Merrill Lynch has guaranteed to the Partnership that it will have sufficient
    Net Assets, as of the Principal Assurance Date for each series of Units,
    that the Net Asset Value per Unit will equal, after reduction for all
    liabilities to third parties and all distributions paid in respect of such
    Units, not less than $100. The Principal Assurance Date for Series A Units
    was September 30, 2001. The Principal Assurance Dates for subsequent Series
    generally occur at each succeeding quarter thereafter.

    The Principal Assurance Dates for Series A through R came to term on or
    before December 31, 2003 and were not renewed. The Series S Units remain
    outstanding, with 100% of their assets allocated to trading, without any
    "principal protection" feature and no longer pay annual distributions. The
    Series S Principal Assurance Date is March 31, 2004 and is also expected to
    not be renewed.

                                       11
<Page>

9.  COPPER SETTLEMENT

    The Partnership, 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 Partnership, during a period in the mid-1990s.
    Members of the class were those who purchased or sold Comex copper futures
    or options contracts between June 24, 1993 and June 15, 1996. The effect of
    the settlement payment was included in the Partnership's performance in
    August 2002.

10. FAIR VALUE AND OFF-BALANCE SHEET RISK

    The Partnership invests indirectly in derivative instruments as a result of
    its investment in MM LLC, but does not itself hold any derivative instrument
    positions. The nature of this Partnership has certain risks, which can not
    be presented on the consolidated financial statements.

    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 Partnership's net unrealized profit (loss) on such derivative
    instruments as reflected in the net unrealized profit (loss) as reflected in
    the Statements of Financial Condition of MM LLC. The Partnership's exposure
    to market risk is influenced by a number of factors, including the
    relationships among the derivative instruments held by MM LLC, as well as
    the volatility and liquidity of the markets in which the derivative
    instruments are traded.

11. SUBSEQUENT EVENT

    Immediately following the distribution announcement and prior to the opening
    of business on January 2, 2004, Series G, H, and O through R, those series
    that had come to term on or before December 31, 2003, but after December 31,
    2002, were consolidated into a new series, Series 2004, with a $1.00 per
    Unit Net Asset Value. The aggregate Net Asset Value of each investor's new
    Units is equal to the aggregate Net Asset Value of their original Units at
    December 31, 2003. The consolidation had no adverse economic effect on the
    investors. MLIM LLC contributed $314 to the Partnership, the amount
    necessary due to the effects of rounding to insure all investors received
    Units equal in value to their original holdings at December 31, 2003. The
    following is a list of the number of new Units each investor received of
    Series 2004 for each Unit of their original series holding.

<Table>
<Caption>
                      NUMBER
       SERIES        OF UNITS
       ------        --------
    <S>               <C>
    G                 110.859969
    H                 102.336331
    O                 129.904347
    P                 132.546751
    Q                 122.531124
    R                 123.779041
</Table>

    After the series consolidation, the brokerage commission rate for Series
    2004 was reduced to a monthly rate of .604 of 1% (a 7.25% annual rate).

                                       12
<Page>

                               * * * * * * * * * *

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


                                 Patrick Hayward
                             Chief Financial Officer
                     Merrill Lynch Investment Managers, LLC
                               General Partner of
                          ML Principal Protection L.P.

                                       13
<Page>

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

                                 Financial Statements for the years ended
                                 December 31, 2003 and 2002
                                 and Independent Auditors' Report

[Merrill Lynch LOGO]

<Page>

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, 2003 AND 2002:

 Statements of Financial Condition                                                                                   2

 Statements of Income                                                                                                3

 Statements of Changes in Members' Capital                                                                           4

 Notes to Financial Statements                                                                                    5-10
</Table>

<Page>

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, 2003 and 2002,
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, 2003 and 2002, 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 10, 2004

<Page>

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

STATEMENTS OF FINANCIAL CONDITION
DECEMBER 31, 2003 AND 2002
--------------------------------------------------------------------------------

<Table>
<Caption>
                                                                    2003              2002
                                                              ----------------  ----------------
<S>                                                           <C>               <C>
ASSETS

Equity in commodity futures trading accounts:
  Cash and option premiums                                    $    144,643,694  $    172,773,081
  Net unrealized profit on open contracts (Note 2)                   3,718,704         4,530,324
Accrued interest (Note 4)                                              113,821           182,180
                                                              ----------------  ----------------

        TOTAL                                                 $    148,476,219  $    177,485,585
                                                              ================  ================

LIABILITIES AND MEMBERS' CAPITAL

LIABILITIES:

  Brokerage commissions payable (Note 4)                      $        480,455  $        618,102
  Profit Shares payable (Note 5)                                     1,200,000         1,400,129
  Administrative fees payable (Note 4)                                  14,465            22,373
  Due to Members                                                     6,652,454         1,990,503
                                                              ----------------  ----------------

      Total liabilities                                              8,347,374         4,031,107
                                                              ----------------  ----------------

MEMBERS' CAPITAL:

  Voting Members                                                   140,128,845       173,454,478
                                                              ----------------  ----------------

      Total Members' capital                                       140,128,845       173,454,478
                                                              ----------------  ----------------

        TOTAL                                                 $    148,476,219  $    177,485,585
                                                              ================  ================
</Table>

See notes to financial statements.

                                        2
<Page>

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

STATEMENTS OF INCOME
FOR THE YEARS ENDED DECEMBER 31, 2003 AND 2002
--------------------------------------------------------------------------------

<Table>
<Caption>
                                                      2003            2002
                                                  -------------   -------------
<S>                                               <C>             <C>
REVENUES

Trading profit (loss):
  Realized                                        $  16,148,311   $   9,241,162
  Change in unrealized                                 (812,432)      2,453,406
Proceeds from Copper Settlement (Note 6)                      -       1,176,518
                                                  -------------   -------------

    Total trading results                            15,335,879      12,871,086

Interest income (Note 4)                              1,677,075       3,079,716
                                                  -------------   -------------

    Total revenues                                   17,012,954      15,950,802
                                                  -------------   -------------

EXPENSES

Brokerage commissions (Note 4)                        6,518,807       7,738,731
Profit Shares (Note 5)                                2,244,341       2,301,983
Administrative fees (Note 4)                            230,413         279,753
                                                  -------------   -------------

    Total expenses                                    8,993,561      10,320,467
                                                  -------------   -------------

NET INCOME                                        $   8,019,393   $   5,630,335
                                                  =============   =============
</Table>

See notes to financial statements.

                                        3
<Page>

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

STATEMENTS OF CHANGES IN MEMBERS' CAPITAL
FOR THE YEARS ENDED DECEMBER 31, 2003 AND 2002
--------------------------------------------------------------------------------

<Table>
<Caption>
                                            VOTING MEMBERS
                                           ----------------
      <S>                                  <C>
      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

      Additions                                  1,030,138

      Net income                                 8,019,393

      Withdrawals                              (42,375,164)
                                           ---------------

      MEMBERS' CAPITAL,
       DECEMBER  31, 2003                  $   140,128,845
                                           ===============
</Table>

See notes to financial statements.

                                        4
<Page>

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. Merrill Lynch Investment Managers, LLC ("MLIM
    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 of 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 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
    LLC. Each Member is a "commodity pool" sponsored and controlled by MLIM LLC
    and shares in the trading results of the Company in proportion to its
    respective capital account.

    MLIM 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
<Page>

    OPERATING EXPENSES

    MLIM 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 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 were declared for the years ended December 31, 2003 or 2002.

    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.

                                        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, 2003
    and 2002, are as follows:

<Table>
<Caption>
                                                    LONG POSTIONS                                 SHORT POSITIONS
                                                    -------------                                 ---------------
                2003                     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                                 534    $   759,185         0.54%             (463)    $   (732,340)      -0.52%
    Currencies                            2,801,267      2,506,141         1.79%       (2,039,212)      (1,044,940)      -0.75%
    Energy                                      256         64,506         0.05%               (6)          (1,130)       0.00%
    Interest rates                            1,715        429,424         0.31%             (425)        (287,757)      -0.21%
    Metals                                      535      1,920,760         1.37%              (73)        (338,848)      -0.24%
    Stock indices                               411        495,501         0.35%              (76)         (51,798)      -0.04%
                                                    --------------                                ----------------

    Total 2003                                         $ 6,175,517         4.41%                      $ (2,456,813)      -1.76%
                                                    ==============                                ================

<Caption>
               2003                     NET UNREALIZED    PERCENT OF
    COMMODITY INDUSTRY SECTOR           PROFIT (LOSS)     NET ASSETS            MATURITY DATES
    -------------------------          -----------------  ----------            --------------
    <S>                                     <C>                 <C>      <C>
    Agriculture                             $      26,845       0.02%    January 04 - May 04
    Currencies                                  1,461,201       1.04%    January 04 - April 04
    Energy                                         63,376       0.05%    January 04 - March 04
    Interest rates                                141,667       0.10%    February 04 - September 04
    Metals                                      1,581,912       1.13%    January 04 - October 04
    Stock indices                                 443,703       0.31%    January 04 - March 04
                                       ------------------

    Total 2003                              $   3,718,704       2.65%
                                       ==================

<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         0.03%               (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>
               2002                      NET UNREALIZED    PERCENT OF
    COMMODITY INDUSTRY SECTOR            PROFIT (LOSS)     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>

    No individual contract's unrealized profit or loss comprised greater than 5%
    of the Company's net assets.

                                        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, 2003.

    TOTAL INVESTMENT RETURN, COMPOUNDED MONTHLY:

<Table>
<S>                                                           <C>
    Investment return before Profit Shares                         7.04%
    Profit Shares                                                 -1.80%
    Total investment return                                        5.20%
                                                             ==========
</Table>

    RATIO TO AVERAGE NET ASSETS:

<Table>
<S>                                                            <C>
    Operating expenses (not including Profit Shares)               4.30%
    Profit Shares                                                  1.42%
                                                             ----------
    Expenses                                                       5.72%
                                                             ==========
</Table>

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 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 calculated
    specifically for each Member (not pro rata based on the Members' respective
    capital accounts) 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, 2003 and 2002, 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 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 for the years ended December 31, 2003 and 2002.
    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.

                                        8
<Page>

5.  ADVISORY AGREEMENTS

    Pursuant to the Advisory Agreements among the Advisors, the Company and MLIM
    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 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 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.

6.  COPPER SETTLEMENT

    The Members, as parties 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 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 2002.

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 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 LLC does not itself intervene in the markets
    to hedge or diversify the Company's market exposure, MLIM 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 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

                                        9
<Page>

    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.

    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.

                                 * * * * * * * *

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


                                 Patrick Hayward
                             Chief Financial Officer
                     Merrill Lynch Investment Managers, LLC
                           Commodity Pool Operator of
                         ML Multi-Manager Portfolio LLC

                                       10