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EXHIBIT 99.1
PROSPECTUS SUPPLEMENT No. 2
(To Prospectus Supplement No. 1 dated June 30, 2000 and
to Prospectus dated February 24, 2000)
[LOGO]
1,000,000,000 Depositary Receipts
Internet Infrastructure HOLDRS Trust
This prospectus supplement amends and supplements information contained in
the prospectus dated February 24, 2000 relating to the sale of up to
1,000,000,000 depositary receipts by Internet Infrastructure HOLDRS Trust.
The depositary trust agreement entered into between Merrill Lynch, Pierce,
Fenner & Smith Incorporated, as the initial depositor, and The Bank of New York,
as trustee, has been amended as of November 22, 2000. The agreement has been
amended to revise the rules related to distributions of securities from the
Internet Infrastructure HOLDRS Trust.
The depositary trust agreement has been amended to provide the following:
. if a company included in the Internet Infrastructure HOLDRS Trust
distributes securities, the distributed securities will not be
distributed from the Internet Infrastructure HOLDRS Trust, unless
either the distributed securities are not listed for trading on a
U.S. national securities exchange or through Nasdaq NMS or the
distributed securities have a Standard & Poor's sector
classification that is different from the Standard & Poor's
sector classifications represented in the Internet Infrastructure
HOLDRS Trust at the time of the distribution, and
. if the securities of a company included in the Internet
Infrastructure HOLDRS Trust are no longer outstanding, as a
result of a merger, consolidation, corporate combination or other
event, any securities received in exchange for those securities
will not be distributed from the Internet Infrastructure HOLDRS
Trust, unless either the securities received in exchange are not
listed for trading on a U.S. national securities exchange or
through Nasdaq NMS or the securities received in exchange have a
Standard & Poor's sector classification that is different from
the Standard & Poor's sector classifications represented in the
Internet Infrastructure HOLDRS Trust at the time of the exchange.
Standard & Poor's Corporation is an independent source of market
information that, among other things, classifies the securities of public
companies into various sector classifications based on its own criteria. There
are 11 Standard & Poor's sector classifications and each class of publicly
traded securities of a company are given only one sector classification. As of
the date of this prospectus supplement, the securities included in the Internet
Infrastructure HOLDRS Trust are represented in the Technology and Consumer
Cyclicals sectors. The Standard & Poor's sector classifications of the
securities included in the Internet Infrastructure HOLDRS Trust may change over
time if the companies that issued these securities change their focus of
operations or if Standard & Poor's alters the criteria it uses to determine
sector classifications, or both.
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It is anticipated, as a result of Standard & Poor's broadly defined sector
classifications, that most distributions or exchanges of securities will not
result in the distribution of securities from the Internet Infrastructure HOLDRS
Trust. The trustee will review the publicly available information that
identifies the Standard & Poor's sector classifications of securities to
determine whether securities received as a result of a distribution by an
underlying issuer or in exchange of securities included in the Internet
Infrastructure HOLDRS Trust will be distributed from the Internet Infrastructure
HOLDRS Trust to you.
The date of this prospectus supplement is November 28, 2000.
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