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Van Eck Global Commences Exchange Offers For Oil Service HOLDRS Trust (OIH) And Five Other Merrill Lynch HOLDRS®

Exchange Mechanics

By participating in the exchange offers, HOLDRS investors will authorize the sale of certain securities underlying the tendered HOLDRS and the purchase of certain other securities to conform to a diversified basket of stocks that align with the indices underlying the new Market Vectors ETFs. Each tendered HOLDRS will be exchanged for one share of the new ETF. The transaction is structured to be an equal value exchange, i.e., the value of the shares of the new ETF received by investors participating in the exchange will be expected to have the equivalent value to the tendered HOLDRS (based on the value of the underlying securities as of the close of trading on the date the exchange offers expire). The risks of the transaction to rebalance the portfolio are described in detail in the exchange offer documents.

Ticker     HOLDRS Trust     Market Vectors ETF

See links for prospectus filings.

    Market Vectors IndexSee links for index information.
      HOLDRS/ETFs INCLUDED IN EXCHANGE OFFERS:
OIH     Oil Service    

Oil Services ETF

   

US Listed Oil Services 25 Index(MVOIHTR)

SMH     Semiconductor    

Semiconductor ETF

   

US Listed Semiconductor 25 Index (MVSMHTR)

PPH     Pharmaceutical    

Pharmaceutical ETF

   

US Listed Pharmaceutical 25 Index (MVPPHTR)

BBH     Biotech    

Biotech ETF

   

US Listed Biotech 25 Index(MVBBHTR)

RTH     Retail    

Retail ETF

   

US Listed Retail 25 Index(MVRTHTR)

RKH     Regional Bank    

Bank and Brokerage ETF

   

US Listed Bank and Brokerage 25 Index (MVRKHTR)

Information relating to the Indicative Rebalanced HOLDRS Securities Value will be available on Van Eck’s website, vaneck.com/holdrs, or by calling, toll free, 800.290.6424 (Banks and Brokers: 212.269.5550).

U.S. Federal Income Taxes

Generally speaking, Van Eck is structuring the exchange offers so that a portion of the exchange of HOLDRS for shares of the ETF is expected to benefit from tax-free exchange treatment for U.S. federal income tax purposes. However, because certain securities underlying the HOLDRS will be sold (and securities will be purchased) in order to conduct portfolio rebalancing and to conform each new Market Vectors ETF as closely as possible to the securities in the underlying index, investors that participate in the exchange offers generally will recognize taxable gains or losses in respect of the securities that are sold. The amount of securities underlying the HOLDRS that will be sold will vary by HOLDRS Trust.

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