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EXHIBIT 99.1
PROSPECTUS SUPPLEMENT No. 2
(To Prospectus Supplement No. 1 dated June 30, 2000 and
to Prospectus dated May 4, 2000)
[LOGO]
1,000,000,000 Depositary Receipts
Semiconductor HOLDRS Trust
This prospectus supplement amends and supplements information contained in
the prospectus dated May 4, 2000 relating to the sale of up to 1,000,000,000
depositary receipts by Semiconductor 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
Semiconductor HOLDRS Trust.
The depositary trust agreement has been amended to provide the following:
. if a company included in the Semiconductor HOLDRS Trust distributes
securities, the distributed securities will not be distributed from
the Semiconductor 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
Semiconductor HOLDRS Trust at the time of the distribution, and
. if the securities of a company included in the Semiconductor 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 Semiconductor 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 Semiconductor 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
Semiconductor HOLDRS Trust are represented in the Technology sector. The
Standard & Poor's sector classifications of the securities included in the
Semiconductor 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.
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
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Semiconductor 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 Semiconductor HOLDRS Trust will be distributed from the Semiconductor HOLDRS
Trust to you.
The date of this prospectus supplement is November 28, 2000.
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