BLACKROCK ADVANTAGE TERM TRUST INC, N-30D, 2000-02-29

BLACKROCK ADVANTAGE TERM TRUST INC
N-30D, 2000-02-29

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THE BLACKROCK ADVANTAGE TERM TRUST INC.
CONSOLIDATED ANNUAL REPORT TO SHAREHOLDERS
REPORT OF INVESTMENT ADVISOR
- --------------------------------------------------------------------------------

January 31, 2000

Dear Shareholder:

After easing monetary policy three times during the fourth quarter of
1998, the Federal Reserve reversed its trend by raising the Fed funds target
rate 75 basis points (to 5.50%) over the course of 1999 in response to robust
GDP, low unemployment and rising equity prices. U.S. Treasury yields rose
significantly during the past twelve months, with the yield of the 30-year
Treasury rising above 6.00% for the first time since May 1998.

Despite the rise in Treasury yields, continued strong economic growth may
spur the Federal Reserve to proactively fight perceived inflation through
continued monetary policy tightening in 2000. Until the inflation picture
becomes clearer, we expect interest rates to remain largely range-bound.
Accordingly, we will continue to seek the most attractive relative value
opportunities and utilize our proprietary risk management systems to help the
Trust to achieve its investment objectives.

This report contains a summary of market conditions during the annual
period and a review of portfolio strategy by your Trust's managers in addition
to the Trust's audited financial statements and a detailed portfolio list of the
portfolio's holdings. Continued thanks for your confidence in BlackRock. We
appreciate the opportunity to help you achieve your long-term investment goals.

Sincerely,

/s/ Laurence D. Fink /s/ Ralph L. Schlosstein
- -------------------- ------------------------
Laurence D. Fink Ralph L. Schlosstein
Chairman President

1
<PAGE>

January 31, 2000

Dear Shareholder:

We are pleased to present the consolidated annual report for The BlackRock
Advantage Term Trust Inc. ("the Trust") for the year ended December 31, 1999. We
would like to take this opportunity to review the Trust's stock price and net
asset value (NAV) performance, summarize market developments and discuss recent
portfolio management activity.

The Trust is a diversified, actively managed closed-end bond fund whose
shares are traded on the New York Stock Exchange under the symbol "BAT". The
Trust's primary investment objective is to return $10 per share (its initial
offering price) to shareholders on or about December 31, 2005. Although there
can be no guarantee, BlackRock believes that the Trust can achieve its
investment objective. The Trust will seek to achieve its objective by investing
in investment grade fixed income securities, including corporate debt
securities, mortgage-backed securities backed by U.S. Government agencies (such
as Fannie Mae, Freddie Mac or Ginnie Mae), asset-backed securities and
commercial mortgage-backed securities. All of the Trust's assets must be rated
at least "BBB" by Standard & Poor's or "Baa" by Moody's at time of purchase or
be issued or guaranteed by the U.S. Government or its agencies.

The table below summarizes the performance of the Trust's stock price and
NAV (the market value of its assets per share) over the past year:

----------------------------------------------------------------------
12/31/99 12/31/98 CHANGE HIGH LOW
- ----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
STOCK PRICE $9.0625 $9.8125 (7.64)% $9.875 $8.9375
- ----------------------------------------------------------------------------------------------------
NET ASSET VALUE (NAV) $10.04 $11.07 (9.30)% $11.12 $10.03
- ----------------------------------------------------------------------------------------------------
10-YEAR TREASURY NOTE 6.44% 4.65% 38.49% 6.44% 4.61%
- ----------------------------------------------------------------------------------------------------
</TABLE>

THE FIXED INCOME MARKETS

Despite the complete reversal of last year's 0.75% easing by the Federal
Reserve, the expansion of the U.S. economy continues intact. At the end of 1999,
the labor markets remain tight, economic growth remains strong and inflation
pressures appear restrained by offsetting gains in productivity. However, the
factors that should eventually lead to higher interest rates also remain intact:
higher equity and commodity prices, a confident consumer, labor markets that
continue to tighten and a global recovery that will boost U.S. exports and
reduce the trade deficit. Along with consumer confidence, consumer credit
continues to advance as evidenced in remarkably strong holiday sales.

Although the Federal Open Market Committee took no action at their
December meeting, this should not be interpreted to mean that the threat of
inflationary forces has dissipated. We expect that continued above-trend
economic strength, tight labor markets and the need to drain the excess
liquidity that the Fed provided the financial markets in the months leading up
to Y2K will warrant additional Fed tightening in 2000. Despite our outlook for
additional Fed moves we believe that the market has adequately priced in the
degree of tightening necessary to successfully engineer an economic slow down
later this year.

Treasury yields increased significantly during 1999, continuing their
year-long slide in price. Over the course of the year the yield of the 30-year
Treasury has increased by nearly 139 basis points (1.39%). The yield of the
10-Year Treasury posted a net increase of 179 basis points (1.79%), beginning
1999 at 4.65% and closing on December 31, 1999 at 6.44%. Bond prices, which move
inversely to their yields, have continued to be punished as the market reacted
to strength of the economy and uncertainty of future Fed action. During the
fourth quarter, the short and intermediate sections of the yield curve

2
<PAGE>

underperformed the long end of the curve. As we move into 2000, we anticipate a
continued flattening of the yield curve as a result of an active Federal Reserve
and potential Treasury repurchases of long maturity debt.

A combination of shrinking supply, and a decline in prepayment rates in
response to a reduction in refinancing activity, allowed mortgage securities to
outperform the broader investment grade market. Falling bond prices kept
mortgages rates near 8%, which has significantly affected refinancing activity
reducing an important source of new mortgage origination. For the period ending
December 31st the LEHMAN BROTHERS MORTGAGE INDEX, mortgages posted a 1.86% total
return versus -0.82% for the LEHMAN BROTHERS AGGREGATE INDEX. As the origination
of new mortgages continues to decline, the outlook for the mortgage sector is
favorable. Despite the rich valuations of mortgages, a likely shortage of
yield-oriented products will draw investors to the mortgage sector as they
execute their investment plans in 2000.

Investment grade corporate securities underperformed the broader
investment grade bond market, as corporates measured by the MERRILL LYNCH U.S.
CORPORATE MASTER INDEX returned -1.87%, as compared to the LEHMAN BROTHERS
AGGREGATE INDEX'S -0.82%. 1999 was marked by a large supply of corporate bonds
due to M&A activity and issuers rushing to market ahead of Y2K. While we believe
M&A activity will follow through in 2000, higher rates combined with the
increased issuance in 1999 should result in a more moderate supply picture in
2000. Despite a very buoyant economic environment, credit parameters have not
been improving in the investment grade corporate bond universe raising concerns
about vulnerability to a down turn. As a result, we have generally implemented
an "up in credit" strategy in portfolios.

THE TRUST'S PORTFOLIO AND INVESTMENT STRATEGY

BlackRock actively manages the Trust's portfolio holdings consistent with
BlackRock's overall market outlook and the Trust's investment objectives. The
following chart compares the Trust's current and December 31, 1998 asset
composition.

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THE BLACKROCK ADVANTAGE TERM TRUST INC.
- ------------------------------------------------------------------------------------------------
COMPOSITION DECEMBER 31, 1999 DECEMBER 31, 1998
- ------------------------------------------------------------------------------------------------
<S> <C> <C>
Zero-Coupon Bonds 38% 38%
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Interest-Only Mortgage-Backed Securities 12% 8%
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Corporate Bonds 10% 11%
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U. S. Government Securities 9% 9%
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Adjustable and Inverse Floating Rate Mortgages 6% 4%
- ------------------------------------------------------------------------------------------------
Agency Multiple Class Mortgage Pass-Throughs 5% 6%
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Commercial Mortgage-Backed Securities 5% 8%
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Stripped Money Market Instruments 5% 4%
- ------------------------------------------------------------------------------------------------
Taxable Municipal Bonds 4% 4%
- ------------------------------------------------------------------------------------------------
Mortgage Pass-Throughs 3% 4%
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Asset-Backed Securities 1% 1%
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Principal-Only Mortgage-Backed Securities 1% 2%
- ------------------------------------------------------------------------------------------------
CMO Residuals 1% 1%
- ------------------------------------------------------------------------------------------------
CMO Residuals 1% 1%
- ------------------------------------------------------------------------------------------------
</TABLE>

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RATING % OF CORPORATES
-------------------------------------
CREDIT RATING DECEMBER 31, 1999 DECEMBER 31, 1998
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AA or equivalent 23% 15%
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A or equivalent 44% 40%
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BBB or equivalent 31% 40%
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BB or equivalent 2% 5%
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3
<PAGE>

In accordance with the Trust's primary investment objective of returning
the initial offer price upon maturity, the Trust's portfolio management activity
focused on adding securities which offer attractive yield spreads over Treasury
securities and an emphasis on maturity dates approximating the Trust's
termination date of December 31, 2005. Additionally, the Trust has been active
in reducing positions in bonds, which have maturity dates or potential cash
flows after the Trust's termination date.

During the reporting period, the most significant additions have been in
interest-only mortgage-backed securities and adjustable rate mortgages.
Additionally, the Trust maintained its significant weighting in U.S. Government
securities, investment grade corporate bonds and well-structured mortgage
securities. To finance these purchases, the Trust primarily sold commercial
mortgage-backed securities and mortgage pass-throughs to add income to the
portfolio.

As a result of an internal reorganization, effective January 1, 2000,
BlackRock Advisors, Inc. has replaced BlackRock Financial Management Inc., a
wholly-owned subsidiary of BlackRock Advisors, Inc. as the Advisor of the Trust.
The investment management and other personnel responsible for providing services
to the Trust did not change as a result of the reorganization. We look forward
to managing the Trust to benefit from the opportunities available in the fixed
income markets and to meet its investment objectives. We thank you for your
investment in The BlackRock Advantage Term Trust Inc. Please feel free to
contact our marketing center at (800) 227-7BFM (7236) if you have specific
questions which were not addressed in this report.

Sincerely,

/s/ Robert s. Kapito /s/ Michael P. Lustig
- -------------------- ---------------------
Robert S. Kapito Michael P. Lustig
Vice Chairman and Portfolio Manager Managing Director and Portfolio Manager
BlackRock Advisors, Inc. BlackRock Advisors, Inc.

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THE BLACKROCK ADVANTAGE TERM TRUST INC.
- --------------------------------------------------------------------------------
Symbol on New York Stock Exchange: BAT
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Initial Offering Date: April 27, 1990
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Closing Stock Price as of 12/31/99: $9.0625
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Net Asset Value as of 12/31/99: $10.04
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Yield on Closing Stock Price as of 12/31/99 ($9.0625)1: 6.62%
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Current Monthly Distribution per Share2: $0.05
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Current Annualized Distribution per Share2: $0.60
- --------------------------------------------------------------------------------

1 Yield on Closing Stock Price is calculated by dividing the current annualized
distribution per share by the closing stock price per share.
2 Distribution not constant and is subject to change.

4
<PAGE>

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THE BLACKROCK ADVANTAGE TERM TRUST INC.
CONSOLIDATED PORTFOLIO OF INVESTMENTS
DECEMBER 31, 1999
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PRINCIPAL
RATING* AMOUNT VALUE
(UNAUDITED) (000) DESCRIPTION (NOTE 1)
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LONG-TERM INVESTMENTS--147.9%
MORTGAGE PASS-THROUGHS--4.7%
Federal Home Loan Mortgage Corp.,
$ 905@ 6.50%, 8/1/25 - 10/1/25 ............. $ 853,040
1,300@ 9.50%, 1/1/05, 15 Year .............. 1,321,374
7 Federal National Mortgage Association,
9.50%, 7/1/20 ....................... 7,379
2,295@ Government National Mortgage
Association,
8.00%, 1/15/26 - 7/15/27 ............ 2,317,778
----------
4,499,571
----------
AGENCY MULTIPLE CLASS MORTGAGE
PASS-THROUGHS--7.9%
1,671 Federal Home Loan Mortgage Corp.,
Multiclass Mortgage Participation
Certificates, Series 1601,
Class 1601-SD, 10/15/08 ............. 1,674,219
Federal National Mortgage Association,
REMIC Pass-Through Certificates,
1,341@ Trust 1992-43, Class 43-E,
4/25/22 ............................ 1,333,978
3,328@ Trust 1992-129, Class 129-J,
7/25/20 ............................ 3,159,765
1,444 Trust 1993-193, Class 193-E,
9/25/23 ............................ 668,312
728 Trust 1994-72, Class 72-L,
4/25/24 ............................ 719,497
----------
7,555,771
----------
ADJUSTABLE & INVERSE FLOATING RATE
MORTGAGES--8.0%
Federal Home Loan Mortgage Corp.,
Multiclass Mortgage Participation
Certificates,
298 Series 1490, Class 1490-SE,
4/15/08 ............................ 257,540
87 Series 1541, Class 1541-TB,
7/15/23 ............................ 83,507
104 Series 1655, Class 1655-SB,
12/15/08 ........................... 98,337
Federal National Mortgage Association,
REMIC Pass-Through Certificates,
2,000@ Trust 1992-190, Class 190-S,
11/25/07 ........................... 1,748,820
2,305 Trust 1993-209, Class 209-SG,
8/25/08 ............................ 2,106,154
704 Trust 1993-212, Class 212-SA,
11/25/08 ........................... 600,648
$ 256 Trust 1994-37, Class 37-SC,
3/25/24 ............................ $ 248,487
AAA 2,635 Sears Mortgage Securities Corp.,
Series 1993-7, Class 7-S3,
4/25/08 ............................. 2,532,879
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7,676,372
----------
INTEREST ONLY MORTGAGE-BACKED
SECURITIES--17.6%
A+ 28,125 Credit Suisse First Boston
Mortgage Securities Corp.,
Series 1997-C1, Class AX,
6/20/29** ........................... 2,318,373
Federal Home Loan Mortgage Corp.,
Multiclass Mortgage Participation
Certificates,
2,230 Series G-25, Class 25-S,
8/25/06 ............................. 35,796
1,500 Series 1543, Class 1543-VU,
4/15/23 ............................ 323,049
3,643 Series 1588, Class 1588-PM,
9/15/22 ............................ 441,343
230 Series 1946, Class 1946-SN,
10/15/08 ........................... 37,651
3,833 Series 2097, Class 2097-PY,
12/15/19 ........................... 500,787
4,082 Series 2154, Class 2154-PF,
4/15/21 ............................ 803,653
Federal National Mortgage Association,
REMIC Pass-Through Certificates,
2,500 Trust 1993-163, Class 163-PH,
3/25/22 ............................ 424,400
6,497 Trust 1993-194, Class 194-PV,
6/25/08 ............................ 625,377
1,934@ Trust 1993-214, Class 214-SL,
12/25/08 ........................... 1,702,102
2,032 Trust 1993-223, Class 223-PT,
10/25/23 ........................... 251,505
2,500 Trust 1997-50, Class 50-HK,
8/25/27 ............................ 786,790
6,755 Trust 1997-84, Class 84-PJ,
1/25/08 ............................ 1,420,590
3,082 Trust 1998-44, Class 44-JI,
8/20/17 ............................ 341,853
3,342 Trust 1998-62, Class 62-EI,
11/25/28 ........................... 546,423
AAA 19,632 First Union-Lehman Brothers-Bank
of America, Series 1998-C2,
Class IO, 5/18/28 ................... 756,666

See Notes to Consolidated Financial Statements.

<PAGE>

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PRINCIPAL
RATING* AMOUNT VALUE
(UNAUDITED) (000) DESCRIPTION (NOTE 1)
- --------------------------------------------------------------------------
INTEREST ONLY MORTGAGE-BACKED
SECURITIES (CONTINUED)
Government National Mortgage
Association
$ 2,307 Trust 1998-24, Class 24-IB,
5/20/23 ............................ $ 530,637
2,974 Trust 1999-17, Class 17-PF,
10/16/25 ........................... 644,067
AAA 11,722 Merrill Lynch Mortgage Investors, Inc.,
Series 1997-C2, Class IO,
12/10/29 ........................... 761,058
AAA 15,509 Morgan (J.P.) Commercial Mortgage
Finance Corp.,
Series 1997-C5, Class X,
9/15/29** ........................... 1,091,965
AAA 3,468 Morgan Stanley Capital 1, Inc.,
Series 1997-HF1, Class HF1-X,
6/15/17** ........................... 256,848
Residential Funding Mortgage
Securities, Inc.,
AAA 34,147 Series 1998-S19, Class A8,
8/25/28 ............................ 269,619
AAA 135,000 Series 1999-S14, Class A5B,
7/25/29 ............................ 1,919,531
-----------
16,790,083
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PRINCIPAL ONLY MORTGAGE-BACKED
SECURITIES--1.2%
Collateralized Mortgage Obligation Trust,
AAA 529 Trust 26, Class A, 4/23/17 .......... 436,242
AAA 44 Trust 29, Class A, 5/23/17 .......... 34,110
230 Federal Home Loan Mortgage Corp.,
Multiclass Mortgage Participation
Certificates, Series 1946, Class 1946-N,
10/15/08 ............................ 171,586
Federal National Mortgage Association,
REMIC Pass-Through Certificates,
1,406 Trust 1993-225, Class 225-ME,
11/25/23 ........................... 492,100
102 Trust 1997-85, Class 85-LE,
10/25/23 ........................... 63,359
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1,197,397
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COMMERCIAL MORTGAGE-BACKED
SECURITIES--7.8%
Aaa 1,000 Deutsche Mortgage and Asset Receiving
Corp.,
Series 1998-C1, Class A2,
6.54%, 2/15/08 ...................... 932,015
BBB 1,000 DLJ Mortgage Acceptance Corp.,
Series 1997-CF1, 7.91%,
4/15/07** ........................... 917,861
AAA 1,000 Goldman Sachs Mortgage Securities
Corp., Series 1996-PL, Class A2,
7.41%, 2/15/27 ...................... 981,450
Merrill Lynch Mortgage Investors, Inc.,
BBB $ 1,000 Series 1995-C1, Class D,
7.92%, 5/25/15 ...................... $ 982,211
BBB 500 Series 1996-C1, Class D,
7.42%, 4/25/28 ...................... 473,001
Mortgage Capital Funding, Inc.,
AAA 350 Series 1998-MC2, Class A2,
6.42%, 5/18/08 ..................... 326,001
AAA 441 Series 1998-MC3, Class A1,
6.00%, 11/18/31 .................... 416,365
AAA 2,000 New York City Mortgage
Loan Trust, Multifamily,
Series 1996, Class A-2,
6.75%, 6/25/11** .................... 1,876,875
AAA 500 Structured Asset Securities Corp.,
Series 1996-CFL, Class B,
6.30%, 2/25/28 ...................... 497,500
-----------
7,403,279
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ASSET-BACKED SECURITIES--2.1%
AAA 800 Chase Credit Card Master Trust,
Series 1997-5, Class A,
6.19%, 8/15/05 ...................... 782,795
NR 421 Global Rated Eligible Asset Trust,
Series 1998-A, Class A-1,
7.33%, 3/15/06**/*** ................ 126,265
AAA 904 Pegasus Aviation Lease Securitization,
Series 1999-1, Class A-1,
6.30%, 3/25/29** .................... 870,536
NR 899 Structured Mortgage Asset
Residential Trust,
Series 1997-3, 8.57%,
4/15/06@@/*** ....................... 197,842
-----------
1,977,438
-----------
U.S. GOVERNMENT AND AGENCY
SECURITIES--12.8%
1,081 Small Business Administration,
Series 1998-10, Class 10-A,
6.12%, 2/1/08 ....................... 1,018,093
United States Treasury Notes,
620@ 5.88%, 11/15/04 ..................... 607,891
500 6.00%, 8/15/04 ...................... 492,185
10,000@ 6.63%, 3/31/02 ...................... 10,068,700
-----------
12,186,869
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ZERO COUPON BONDS--56.6%
Aid to Israel,
12,407 2/15/05 - 8/15/05 ................... 8,620,695
Government Trust Certificates,
5,220 Class 2-F, 5/15/05 .................. 3,637,192
13,760 Class T-1, 5/15/05 .................. 9,461,238
22,926@ Resolution Funding Corp.,
7/15/05 ............................. 15,878,777
6,216 Tennessee Valley Authority,
11/1/05 ............................. 4,146,507
18,000@ United States Treasury Strip,
11/15/05 ............................ 12,277,980
-----------
54,022,389
-----------

See Notes to Consolidated Financial Statements.

6
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TAXABLE MUNICIPAL BONDS--6.2%
AAA $1,000 Alameda County California
Pension Obligation,
Zero Coupon, 12/1/05 ................ $ 647,240
AAA 1,000 Alaska Energy Power Authority Revenue,
Zero Coupon, 7/1/05 ................. 754,000
AAA 1,400 Kern County California Pension Obligation,
Zero Coupon, 2/15/00 - 8/15/05 ...... 990,636
Long Beach California Pension Obligation,
AAA 1,407 Zero Coupon, 3/1/00 - 9/1/05 ........ 993,869
AAA 500 7.09%, 9/1/09 ....................... 483,070
Los Angeles County California
Pension Obligation,
AAA 1,372 Zero Coupon, 6/30/00 - 6/30/05 ...... 969,679
AAA 1,000 8.62%, 6/30/06 ...................... 1,059,110
------------
5,897,604
------------
CORPORATE BONDS--15.2%
FINANCE & BANKING--9.4%
A3 1,000@ American Savings Bank,
6.63%, 2/15/06** .................... 941,355
A 1,417 Equitable Life Assurance Society USA,
Zero Coupon, 6/1/00 - 12/1/05** ..... 966,746
A 1,000 Lehman Brothers Holdings, Inc.,
6.75%, 9/24/01 ...................... 992,548
BB- 500 Macsaver Financial Services, Inc.,
7.88%, 8/1/03 ....................... 295,000
BBB+ 1,900 PaineWebber Group, Inc.,
7.88%, 2/15/03 ...................... 1,911,495
Salomon Smith Barney, Inc.,
Aa3 1,000 6.75%, 1/15/06 ...................... 959,500
Aa3 1,425 7.98%, 3/1/00 ....................... 1,428,392
A- 1,485 Transamerica Finance Corp.,
6.75%, 6/1/00 ....................... 1,484,881
------------
8,979,917
------------
INDUSTRIALS--2.6%
AA- 1,000@ TCI Communications, Inc.,
8.25%, 1/15/03 ...................... 1,031,470
Baa2 1,985 Union Pacific Corp.,
Zero Coupon, 5/1/00 - 5/1/05** ...... 1,414,924
------------
2,446,394
------------
UTILITIES--1.0%
A 1,000 Alltel Corp.,
7.50%, 3/1/06 ....................... 998,430
------------
YANKEE--2.2%
BBB- 1,000 Empresa Electric Guacolda SA,
7.95%, 4/30/03** .................... 950,000
BBB+ 200 Empresa Electric Pehuenche,
7.30%, 5/1/03 ....................... 192,733
A- 1,000 Israel Electric Corp., Ltd.,
7.25%, 12/15/06** ................... 945,630
------------
2,088,363
------------
Total corporate bonds ................. 14,513,104
------------
STRIPPED MONEY MARKET
INSTRUMENTS--7.4%
$10,000 Vanguard Prime Money Market Portfolio,
Zero Coupon, 12/31/04 ............... $ 7,028,000
------------
COLLATERALIZED MORTGAGE OBLIGATION
RESIDUALS***--0.4%
10 Federal Home Loan Mortgage Corp.,
Multiclass Mortgage Participation
Certificates,
Series 1035, Class 1035-R,
1/15/21 ............................. 375,000
------------
NOTIONAL
AMOUNT
(000)
--------
CALL OPTIONS PURCHASED
$15,000 Interest Rate Swap,
5.60% over 3 month LIBOR,
expires 8/7/00
(cost $206,250) ..................... 4,616
------------
TOTAL LONG-TERM INVESTMENTS
(COST $138,978,457) ................. 141,127,493
------------
PRINCIPAL
AMOUNT
(000)
--------
SHORT-TERM INVESTMENTS--1.3%
DISCOUNT NOTES
$ 1,295 Federal Home Loan Bank,
1.50%, 1/3/00
(amortized cost $1,294,892) ......... 1,294,892
------------
Total investments--149.2%
(cost $140,273,349) ................. 142,422,385
Liabilities in excess of
other assets--(49.2)% ............... (46,979,324)
------------
NET ASSETS--100% ...................... $95,443,061
============
- -----------
* Using the higher of Standard & Poor's, Moody's or Fitch's rating.

** Security is exempt from registration under Rule 144A of the Securities Act
of 1933. These securities may be resold in transactions exempt from
registration to qualified institutional buyers.

*** Illiquid securities representing 0.5% of portfolio assets.

@ Entire or partial principal amount pledged as collateral for reverse
repurchase agreements or financial futures contracts.

@@ Security is restricted as to public resale. The security was acquired in
1997 and has a current cost of $314,748.

- --------------------------------------------------------------
KEY TO ABBREVIATIONS

LIBOR -- London InterBank Offer Rate.
REMIC -- Real Estate Mortgage Investment Conduit.
- --------------------------------------------------------------

See Notes to Consolidated Financial Statements.

7
<PAGE>

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THE BLACKROCK ADVANTAGE TERM TRUST INC.
CONSOLIDATED STATEMENT OF
ASSETS AND LIABILITIES
DECEMBER 31, 1999
- --------------------------------------------------------------------------

ASSETS
Investments, at value (cost $140,273,349)
(Note 1) ............................................. $142,422,385
Cash ................................................... 51,629
Interest receivable .................................... 1,084,281
------------
143,558,295
------------
LIABILITIES
Reverse repurchase agreements (Note 4) ................. 47,039,390
Dividend payable ....................................... 475,533
Interest payable ....................................... 132,918
Investment advisory fee payable (Note 2) ............... 39,847
Administration fee payable (Note 2) .................... 7,970
Other accrued expenses ................................. 419,576
------------
48,115,234
------------
NET ASSETS ............................................. $ 95,443,061
============
Net assets were comprised of:
Common stock, at par (Note 5) ........................ $ 95,107
Paid-in capital in excess of par ..................... 87,124,396
------------
....................................................... 87,219,503
Undistributed net investment income .................. 4,600,207
Accumulated net realized gain ........................ 1,474,315
Net unrealized appreciation .......................... 2,149,036
------------
Net assets, December 31, 1999 ........................ $ 95,443,061
============
Net asset value per share:
($95,443,061 O 9,510,667 shares of
common stock issued and outstanding) ................. $10.04
======

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THE BLACKROCK ADVANTAGE TERM TRUST INC.
CONSOLIDATED STATEMENT
OF OPERATIONS
YEAR ENDED DECEMBER 31, 1999
- --------------------------------------------------------------------------

NET INVESTMENT INCOME
Income
Interest earned (including net discount accretion
of $1,781,381 and net of interest expense of
$2,473,820) ........................................ $ 6,751,492
------------
Operating expenses
Investment advisory .................................. 502,669
Administration ....................................... 100,534
Custodian ............................................ 73,000
Reports to shareholders .............................. 60,000
Legal ................................................ 45,000
Independent accountants .............................. 40,000
Directors ............................................ 25,000
Transfer agent ....................................... 24,000
Registration ......................................... 16,000
Miscellaneous ........................................ 29,708
------------
Total operating expenses ........................... 915,911
------------
Net investment income before excise tax ................ 5,835,581
Excise tax ......................................... 230,000
------------
Net investment income .................................. 5,605,581
------------
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS
Net realized gain (loss) on:
Investments .......................................... 365,631
Options written ...................................... 147,000
Futures .............................................. 281,483
Short sales .......................................... 211,914
Interest rate swaps .................................. (50,708)
------------
....................................................... 955,320
------------
Net change in unrealized appreciation
(depreciation) on:
Investments .......................................... (11,274,491)
Options written ...................................... 385,896
Futures .............................................. 7,136
Short sales .......................................... 333,514
Interest rateswaps ................................... (81,656)
------------
(10,629,601)
------------
Net loss on investments ................................ (9,674,281)
------------
NET DECREASE IN NET ASSETS
RESULTING FROM OPERATIONS ............................ $(4,068,700)
============

See Notes to Consolidated Financial Statements.

8
<PAGE>

- --------------------------------------------------------------------------
THE BLACKROCK ADVANTAGE TERM TRUST INC.
CONSOLIDATED STATEMENT OF CASH FLOWS
YEAR ENDED DECEMBER 31, 1999
- --------------------------------------------------------------------------

RECONCILIATION OF NET DECREASE IN NET ASSETS
RESULTING FROM OPERATIONS TO NET CASH
FLOWS PROVIDED BY OPERATING ACTIVITIES
Net decrease in net assets resulting
from operations ........................................ $ (4,068,700)
------------
Decrease in investments .................................. 3,729,254
Net realized gain ........................................ (955,320)
Decrease in unrealized appreciation ...................... 10,629,601
Increase in interest receivable .......................... (120,440)
Decrease in deposits with brokers for
investments sold short ................................. 9,203,750
Decrease in unrealized appreciation of
interest rate swap ..................................... 81,656
Decrease in due to broker-variation
margin ................................................. (6,593)
Decrease in payable for investments sold short ........... (9,044,960)
Decrease in call options written ......................... (532,896)
Decrease in interest payable ............................. (103,743)
Decrease in accrued expenses and other
liabilities ............................................ (55,561)
------------
Total adjustments ...................................... 12,824,748
------------
Net cash flows provided by operating activities .......... $ 8,756,048
============
INCREASE (DECREASE) IN CASH
Net cash flows provided by operating activities: ......... $ 8,756,048
------------
Cash flows used for financing activities:
Decrease in reverse repurchase agreements .............. (3,012,070)
Cash dividends paid .................................... (5,745,705)
------------
Net cash flows used for financing activities ............. (8,757,775)
------------
Net decrease in cash ................................... (1,727)
Cash at beginning of year .............................. 53,356
------------
Cash at end of year .................................... $ 51,629
============

- --------------------------------------------------------------------------
THE BLACKROCK ADVANTAGE TERM TRUST INC.
CONSOLIDATED STATEMENTS OF
CHANGES IN NET ASSETS
- --------------------------------------------------------------------------

YEAR ENDED DECEMBER 31,
1999 1998
----------- -----------

INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income ................ $ 5,605,581 $ 6,466,933
Net realized gain
on investments ..................... 955,320 2,115,335
Net change in unrealized
appreciation/depreciation
on investments ..................... (10,629,601) 1,766,310
------------ ------------
Net increase (decrease)
in net assets resulting from
operations ......................... (4,068,700) 10,348,578
Dividends from net investment
income ............................. (5,725,894) (5,943,827)
------------ ------------
Total increase (decrease) .......... (9,794,594) 4,404,751
NET ASSETS
Beginning of year ...................... 105,237,655 100,832,904
------------ ------------
End of year (including undistributed
net investment income of
$4,600,207 and $4,490,520,
respectively) ........................ $ 95,443,061 $105,237,655
============ ============

See Notes to Consolidated Financial Statements.

<PAGE>

- --------------------------------------------------------------------------
THE BLACKROCK ADVANTAGE TERM TRUST INC.
CONSOLIDATED FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------

<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31,
-------------------------------------------------------
1999 1998 1997 1996 1995
----- ----- ----- ----- -----
<S> <C> <C> <C> <C> <C>
PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning of year .......................... $ 11.07 $ 10.60 $ 10.10 $ 10.49 $ 9.00
------- ------- ------- ------- -------
Net investment income (net of interest expense of
$0.26, $0.28, $0.26, $0.22 and $0.47, respectively) ..... 0.59 0.68 0.76 0.57 0.74
Net realized and unrealized gain (loss) ................... (1.02) 0.41 0.36 (0.33) 1.42
------- ------- ------- ------- -------
Net increase (decrease) from investment operations .......... (0.43) 1.09 1.12 0.24 2.16
------- ------- ------- ------- -------
Dividends from net investment income ........................ (0.60) (0.62) (0.62) (0.63) (0.67)
------- ------- ------- ------- -------
Net asset value, end of year* ............................... $ 10.04 $ 11.07 $ 10.60 $ 10.10 $ 10.49
======= ======= ======= ======= =======
Market value, end of year* .................................. $ 9.06 $ 9.81 $ 9.38 $ 8.63 $ 8.63
======= ======= ======= ======= =======
TOTAL INVESTMENT RETURN ..................................... (1.58)% 11.03% 15.79% 7.30% 20.31%
======= ======= ======= ======= =======
RATIOS TO AVERAGE NET ASSETS:
Operating expenses .......................................... 0.91% 0.91% 0.88% 0.91% 1.00%
Operating expenses and interest expense ..................... 3.37% 3.52% 3.39% 3.06% 5.86%
Operating expenses, interest expense and excise taxes ....... 3.60% 3.71% 3.52% 3.52% 5.97%
Net investment income ....................................... 5.58% 6.23% 7.47% 5.80% 7.53%

SUPPLEMENTAL DATA:
Average net assets (in thousands) ........................... $100,534 $ 103,812 $ 97,493 $ 93,370 $ 93,044
Portfolio turnover 9% 11% 31% 76% 94%
Net assets, end of year (in thousands) ...................... $ 95,443 $ 105,238 $100,833 $ 96,028 $ 99,723
Reverse repurchase agreements outstanding,
end of year (in thousands) ................................ $ 47,039 $ 50,051 $ 48,275 $ 26,933 $ 48,581
Asset coverage .............................................. $ 3,029 $ 3,103 $ 3,089 $ 4,565 $ 3,053
</TABLE>

- ------------------
* Net asset value and market value are published in BARRON'S each Saturday
and THE WALL STREET JOURNAL each Monday.
+ Total investment return is calculated assuming a purchase of common
stock at the current market price on the first day and a sale at the
current market price on the last day of each year reported. Dividends are
assumed, for purposes of this calculation, to be reinvested at prices
obtained under the Trust's dividend reinvestment plan. This calculation
does not reflect brokerage commissions.
++ Per $1,000 of reverse repurchase agreements outstanding.

The information above represents the audited operating performance data for a
share of common stock outstanding, total investment return, ratios to average
net assets and other supplemental data, for each of the years indicated. This
information has been determined based upon financial information provided in the
financial statements and market value data for the Trust's shares.

See Notes to Consolidated Financial Statements.

<PAGE>

- --------------------------------------------------------------------------------
THE BLACKROCK ADVANTAGE TERM TRUST INC.
NOTES TO CONSOLIDATED
FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------

NOTE 1. ORGANIZATION & The BlackRock Advantage ACCOUNTING Term Trust Inc.
ACCOUNTING (the "Trust"), a Maryland corporation, is a diversified,
POLICIES closed-end management investment company. The Trust's
primary investment objective is to manage a portfolio
of investment grade fixed income securities that will return $10 per share to
investors on or shortly before December 31, 2005. The ability of issuers of debt
securities held by the Trust to meet their obligations may be affected by
economic developments in a specific industry or region. No assurance can be
given that the Trust's investment objective will be achieved.

On October 31, 1998, the Trust transferred a substantial portion of its total
assets to a 100% owned regulated investment company subsidiary called BAT
Subsidiary, Inc.These consolidated financial statements include the operations
of both the Trust and its wholly-owned subsidiary after eliminattion of all
intercompany transactions and balances.

The following is a summary of significant accounting policies followed by the
Trust.

SECURITIES VALUATION: The Trust values mortgage-backed, asset backed and other
debt securities, interest rate swaps, caps, floors and non-exchange traded
options on the basis of current market quotations provided by dealers or pricing
services approved by the Trust's Board of Directors. In determining the value of
a particular security, pricing services may use certain information with respect
to transactions in such securities, quotations from dealers, market transactions
in comparable securities, various relationships observed in the market between
securities, and calculated yield measures based on valuation technology commonly
employed in the market for such securities. Exchange-traded options are valued
at their last sales price as of the close of options trading on the applicable
exchanges. In the absence of a last sale, options are valued at the average of
the quoted bid and asked prices as of the close of business. A futures contract
is valued at the last sale price as of the close of the commodities exchange on
which it trades. Any securities or other assets for which such current market
quotations are not readily available are valued at fair value as determined in
good faith under procedures established by and under the general supervision and
responsibility of the Trust's Board of Directors.

Short-term securities having a remaining maturity of 60 days or less are
valued at amortized cost which approximates market value.

REPURCHASE AGREEMENTS: In connection with transactions in repurchase
agreements, the Trust's custodian takes possession of the underlying collateral
securities, the value of which at least equals the principal amount of the
repurchase transaction, including accrued interest. To the extent that any
repurchase transaction exceeds one business day, the value of the collateral is
marked-to-market on a daily basis to ensure the adequacy of the collateral. If
the seller defaults and the value of the collateral declines or if bankruptcy
proceedings are commenced with respect to the seller of the security,
realization of the collateral by the Trust may be delayed or limited.

OPTION SELLING/PURCHASING: When the Trust sells or purchases an option, an
amount equal to the premium received or paid by the Trust is recorded as a
liability or an asset and is subsequently adjusted to the current market value
of the option written or purchased. Premiums received or paid from writing or
purchasing options which expire unexercised are treated by the Trust on the
expiration date as realized gains or losses. The difference between the premium
and the amount paid or received on effecting a closing purchase or sale
transaction, including brokerage commissions, is also treated as a realized gain
or loss. If an option is exercised, the premium paid or received is added to the
cost of the purchase or proceeds from the sale in determining whether the Trust
has realized a gain or a loss on investment transactions. The Trust, as writer
of an option, may have no control over whether the underlying securities may be
sold (call) or purchased (put) and as a result bears the market risk of an
unfavorable change in the price of the security underlying the written option.

Options, when used by the Trust, help in maintaining a targeted duration.
Duration is a measure of the price sensitivity of a security or a portfolio to
relative changes in interest rates. For instance, a duration of "one" means that
a portfolio's or a security's price would be expected to change by approximately
one percent with a one percent change in interest rates, while a duration of
five would imply that the price would move approximately five percent in
relation to a one percent change in interest rates.

Option selling and purchasing is used by the Trust to effectively hedge
positions, or collections of positions, so that changes in interest rates do not
change the duration of the portfolio unexpectedly. In general, the Trust uses
options to hedge a long or short position or an overall portfolio that is longer
or shorter than the benchmark security. A call option gives the purchaser of the
option the right (but not obligation) to buy, and obligates the seller to sell
(when the option is exercised), the underlying position at the exercise price at
anytime

11
<PAGE>

or at a specified time during the option period. A put option gives the holder
the right to sell and obligates the writer to buy the underlying position at the
exercise price at any time or at a specified time during the option period. Put
options can be purchased to effectively hedge a position or a portfolio against
price declines if a portfolio is long. In the same sense, call options can be
purchased to hedge a portfolio that is shorter than its benchmark against price
changes. The Trust can also sell (or write) covered call options and put options
to hedge portfolio positions.

The main risk that is associated with purchasing options is that the option
expires without being exercised. In this case, the option expires worthless and
the premium paid for the option is considered the loss. The risk associated with
writing call options is that the Trust may forego the opportunity for a profit
if the market value of the underlying position increases and the option is
exercised. The risk in writing put options is that the Trust may incur a loss if
the market value of the underlying position decreases and the option is
exercised. In addition, as with futures contracts, the Trust risks not being
able to enter into a closing transaction for the written option as the result of
an illiquid market.

INTEREST RATE SWAPS: In a simple interest rate swap, one investor pays a
floating rate of interest on a notional principal amount and receives a fixed
rate of interest on the same notional principal amount for a specified period of
time. Alternatively, an investor may pay a fixed rate and receive a floating
rate. Interest rate swaps were conceived as asset/liability management tools. In
more complex swaps, the notional principal amount may decline (or amortize) over
time.

During the term of the swap, changes in the value of the swap are recognized
as unrealized gains or losses by "marking-to-market" to reflect the market value
of the swap. When the swap is terminated, the Trust will record a realized gain
or loss equal to the difference between the proceeds from (or cost of) the
closing transaction and the Trust's basis in the contract, if any.

The Trust is exposed to credit loss in the event of non-performance by the
other party to the interest rate swap. However, the Trust does not anticipate
non-performance by any counterparty. SWAP OPTIONS: Swap options are similar to
options on securities except that instead of selling or purchasing the right to
buy or sell a security, the writer or purchaser of the swap option is granting
or buying the right to enter into a previously agreed upon interest rate swap
agreement at any time before the expiration of the option. Premiums received or
paid from writing or purchasing options are recorded as liabilities or assets
and are subsequently adjusted to the current market value of the option written
or purchased. Premiums received or paid from writing or purchasing options which
expires unexercised are treated by the Trust on the expiration date as realized
gains or losses. The difference between the premium and the amount paid or
received on effecting a closing purchase or sale transaction, including
brokerage commission, is also treated as a realized gain or loss. If an option
is exercised, the premium paid or received is added to the proceeds from the
sale or cost of the purchase in determining whether the Trust has realized a
gain or loss on investment transactions

The main risk that is associated with purchasing swap options is that the
swap option expires without being exercised. In this case, the option expires
worthless and the premium paid for the swap option is considered the loss. The
main risk that is associated with the writing of a swap option is the market
risk of an unfavorable change in the value of the interest rate swap underlying
the written swap option.

Swap options may be used by the Trust to manage the duration of the Trust's
portfolio in a manner similar to more generic options described above. FINANCIAL
FUTURES CONTRACTS: A futures contract is an agreement between two parties to buy
and sell a financial instrument for a set price on a future date. Initial margin
deposits are made upon entering into futures contracts and can be either cash or
securities. During the period the futures contract is open, changes in the value
of the contract are recognized as unrealized gains or losses by
"marking-to-market" on a daily basis to reflect the market value of the contract
at the end of each day's trading. Variation margin payments are made or
received, depending upon whether unrealized gains or losses are incurred. When
the contract is closed, the Trust records a realized gain or loss equal to the
difference between the proceeds from (or cost of) the closing transaction and
the Trust's basis in the contract.

Financial futures contracts, when used by the Trust, help in maintaining a
targeted duration. Futures contracts can be sold to effectively shorten an
otherwise longer duration portfolio. In the same sense, futures contracts can be
purchased to lengthen a portfolio that is shorter than its duration target.
Thus, by buying or selling futures contracts, the Trust can effectively "hedge"
more volatile positions so that changes in interest rates do not change the
duration of the portfolio unexpectedly.

The Trust may invest in financial futures contracts primarily for the purpose
of hedging its existing portfolio securities or securities the Trust intends to
purchase against fluctuations in value caused by changes in prevailing market
interest rates. Should interest rates move unexpectedly, the Trust may not
achieve the anticipated benefits of the financial futures contracts and may
realize a loss. The use of futures transactions involves the risk of imperfect
correlation in movements in the

12
<PAGE>

price of futures contracts, interest rates and the underlying hedged assets. The
Trust is also at risk of not being able to enter into a closing transaction for
the futures contract because of an illiquid secondary market. In addition, since
futures are used to shorten or lengthen a portfolio's duration, there is a risk
that the portfolio may have temporarily performed better without the hedge or
that the Trust may lose the opportunity to realize appreciation in the market
price of the underlying positions.

SHORT SALES: The Trust may make short sales of securities as a method of hedging
potential price declines in similar securities owned. When the Trust makes a
short sale, it may borrow the security sold short and deliver it to the
broker-dealer through which it made the short sale as collateral for its
obligation to deliver the security upon conclusion of the sale. The Trust may
have to pay a fee to borrow the particular securities and may be obligated to
pay over any payments received on such borrowed securities. A gain, limited to
the price at which the Trust sold the security short, or a loss, unlimited as to
dollar amount, will be recognized upon the termination of a short sale if the
market price is less or greater than the proceeds originally received.

SECURITIES LENDING: The Trust may lend its portfolio securities to qualified
institutions. The loans are secured by collateral at least equal, at all times,
to the market value of the securities loaned. The Trust may bear the risk of
delay in recovery of, or even loss of rights in, the securities loaned should
the borrower of the securities fail financially. The Trust receives compensation
for lending its securities in the form of interest on the loan. The Trust also
continues to receive interest on the securities loaned, and any gain or loss in
the market price of the securities loaned that may occur during the term of the
loan will be for the account of the Trust.

The Trust did not engage in securities lending during the year ended December
31, 1999.

INTEREST RATE CAPS: Interest rate caps are similar to interest rate swaps,
except that one party agrees to pay a fee, while the other party pays the
excess, if any, of a floating rate over a specified fixed or floating rate.

Interest rate caps are intended to both manage the duration of the Trust's
portfolio and its exposure to changes in short term rates. Owning interest rate
caps reduces the portfolio's duration, making it less sensitive to changes in
interest rates from a market value perspective. The effect on income involves
protection from rising short term rates, which the Trust experiences primarily
in the form of leverage.

The Trust is exposed to credit loss in the event of non-performance by the
other party to the interest rate cap. However, the Trust does not anticipate
non-performance by any counterparty.

Transactions fees paid or received by the Trust are recognized as assets or
liabilities and amortized or accreted into interest expense or income over the
life of the interest rate cap. The asset or liability is subsequentlyadjusted to
the current market value of the interest rate cap purchased or sold. Changes in
the value of the interest rate cap are recognized as unrealized gains or losses.

INTEREST RATE FLOORS: Interest rate floors are similar to interest rate
swaps, except that one party agrees to pay a fee, while the other party pays the
deficiency, if any, of a floating rate under a specified fixed or floating rate.

Interest rate floors are used by the Trust to both manage the duration of the
portfolio and its exposure to changes in short-term interest rates. Selling
interest rate floors reduces the portfolio's duration, making it less sensitive
to changes in interest rates from a market value perspective. The Trust's
leverage provides extra income in a period of falling rates. Selling floors
reduces some of the advantage by partially monetizing it as an up front payment
which the Trust receives.

The Trust is exposed to credit loss in the event of non-performance by the
other party to the interest rate floor. However, the Trust does not anticipate
non-performance by any counterparty.

Transactions fees paid or received by the Trust are recognized as assets or
liabilities and amortized or accreted into interest expense or income over the
life of the interest rate floor. The asset or liability is subsequently adjusted
to the current market value of the interest rate floor purchased or sold.
Changes in the value of the interest rate floor are recognized as unrealized
gains and losses.

SECURITIES TRANSACTIONS AND INVESTMENT INCOME: Securities transactions are
recorded on the trade date. Realized and unrealized gains and losses are
calculated on the identified cost basis. Interest income is recorded on the
accrual basis and the Trust accretes discount and amortizes premium on
securities purchased using the interest method.

TAXES: It is the Trust's intention to continue to meet the requirements of the
Internal Revenue Code applicable to regulated investment companies and to
distribute sufficient taxable

13
<PAGE>

income to shareholders. Therefore, no federal income tax provision is required.
As part of its tax planning strategy, the Trust intends to retain a portion of
its taxable income and pay an excise tax on the undistributed amounts.

DIVIDENDS AND DISTRIBUTIONS: The Trust declares and pays dividends and
distributions monthly, first from net investment income, then from net realized
short-term capital gains and other sources, if necessary. Net long-term capital
gains, if any, in excess of loss carryforwards may be distributed annually.
Dividends and distributions are recorded on the ex-dividend date.

Income distributions and capital gain distributions are determined in
accordance with income tax regulations which may differ from generally accepted
accounting principles.

RECLASSIFICATION OF CAPITAL ACCOUNTS: The Trust accounts for and reports
distributions to shareholders in accordance with the American Institute of
Certified Public Accountants' Statement of Position 93-2:Determination,
Disclosure, and Financial Statement Presentation of Income, Capital Gain, and
Return of Capital Distributions by Investment Companies. The effect caused by
applying this statement was to decrease paid-in capital and increase
undistributed net investment income by $230,000 due to certain expenses not
being deductible for tax purposes. Net investment income, net realized gains and
net assets were not affected by this change.

ESTIMATES: The preparation of financial statements in conformity with generally
accepted accounting principles 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.

NOTE 2. AGREEMENTS The Trust has an Investment Advisory Agreement with
BlackRock Financial Management, Inc., (the "Advisor"),
a wholly owned subsidiary of BlackRock Advisors, Inc., which is a wholly-owned
subsidiary of BlackRock, Inc., which in turn is an indirect majority-owned
subsidiary of PNC Bank Corp. The Trust has an Administration Agreement with
Prudential Investments Fund Management, LLC ("PIFM"), a wholly-owned subsidiary
of The Prudential Insurance Co. of America.

The investment advisory fee paid to the Advisor is computed weekly and
payable monthly at an annual rate of 0.50% of the Trust's average weekly net
assets. The administration fee paid to PIFM is also computed weekly and payable
monthly at an annual rate of 0.10% of the Trust's average weekly net assets
through December 31, 2000 and 0.08% from January 1, 2001 to the termination or
liquidation of the Trust.

Pursuant to the agreements, the Advisor provides continuous supervision of
the investment portfolio and pays the compensation of officers of the Trust who
are affiliated persons of the Advisor. PIFM pays occupancy and certain clerical
and accounting costs of the Trust. The Trust bears all other costs and expenses.

NOTE 3. PORTFOLIO Purchases and sales of investment securities, other
SECURITIES than short-term investments and dollar rolls, for
the year ended December 31, 1999 aggregated
$24,227,806 and $13,149,672, respectively.

The Trust may invest up to 85% of its total assets in securities which are
not readily marketable, including those which are restricted as to disposition
under securities law ("restricted securities"). At December 31, 1999, the Trust
held 9.7% of its portfolio assets in restricted securities.

The Trust may from time to time purchase in the secondary market certain
mortgage pass-through securities packaged or master serviced by affiliates such
as PNC Mortgage Securities Corp. (or Sears Mortgage if PNC Mortgage Securities
Corp. succeeded to rights and duties of Sears) or mortgage related securities
containing loans or mortgages originated by PNC Bank or its affiliates,
including Midland Loan Services, Inc. It is possible under certain
circumstances, PNC Mortgage Securities Corp. or its affiliates, including
Midland Loan Services, Inc. could have interests that are in conflict with the
holders of these mortgage-backed securities, and such holders could have rights
against PNC Mortgage Securities Corp. or its affiliates, including Midland Loan
Services, Inc.

The federal income tax basis of the Trust's investments at December 31, 1999
was $140,292,621 and, accordingly, net unrealized appreciation for federal
income tax purposes was $2,129,764 (gross unrealized appreciation--$5,846,542;
gross unrealized depreciation--$3,716,778).

For federal income tax purposes, the Trust had a capital loss carryforward at
December 31, 1999 of approximately $176,500, which expires in 2005. Accordingly,
no capital gains distribution is expected to be paid to shareholders until net
gains have been realized in excess of such amount.

NOTE 4. BORROWINGS REVERSE REPURCHASE AGREEMENTS: The Trust may
enter into reverse repurchase agreements with
qualified, third party broker-dealers as determined by and under the direction
of the Trust's Board of Directors. Interest on the value of reverse repurchase
agreements issued and outstanding will be

14
<PAGE>

based upon competitive market rates at the time of issuance. At the time the
Trust enters into a reverse repurchase agreement, it will establish and maintain
a segregated account with the lender, the value of which at least equals the
principal amount of the reverse repurchase transactions including accrued
interest.

The average daily balance of reverse repurchase agreements outstanding during
the year ended December 31, 1999 was approximately $46,626,811 at a weighted
average interest rate of approximately 5.14%. The maximum amount of reverse
repurchase agreements outstanding at any month-end during the year ended
December 31, 1999 was $51,006,335 as of January 31, 1999 which was 37.2% of
total assets.

DOLLAR ROLLS: The Trust may enter into dollar rolls in which the Trust sells
securities for delivery in the current month and simultaneously contracts to
repurchase substantially similar (same type, coupon and maturity) securities on
a specified future date. During the roll period the Trust forgoes principal and
interest paid on the securities. The Trust will be compensated by the interest
earned on the cash proceeds of the initial sale and by the lower repurchase
price at the future date.

The Trust did not enter into dollar rolls during the year ended December 31,
1999.

NOTE 5. CAPITAL There are 200 million shares of $.01 par value
common stock authorized. Of the 9,510,667 shares
outstanding at December 31, 1999, the Advisor owned 10,667 shares.

<PAGE>

- --------------------------------------------------------------------------------
THE BLACKROCK ADVANTAGETERM TRUST INC.
REPORT OF INDEPENDENT AUDITORS
- --------------------------------------------------------------------------------

The Shareholders and Board of Directors of
The BlackRock Advantage Term Trust Inc.:

We have audited the accompanying consolidated statement of assets and
liabilities of The BlackRock Advantage Term Trust Inc., including the
consolidated portfolio of investments, as of December 31, 1999, and the related
consolidated statements of operations and of consolidated cash flows for the
year then ended, the consolidated statement of changes in net assets for each of
the two years in the period then ended and the consolidated financial highlights
for each of the five years in the period then ended. These consolidated
financial statements and consolidated financial highlights are the
responsibility of the Trust's management. Our responsibility is to express an
opinion on these consolidated financial statements and consolidated financial
highlights based on our audits.

We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the consolidated financial statements and
consolidated financial highlights are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts and
disclosures in the consolidated financial statements. Our procedures included
confirmation of securities owned at December 31, 1999, by correspondence with
the custodian and brokers; where replies were not received from brokers, we
performed other auditing procedures. An audit also includes assessing the
accounting principles used and significant estimates made by management, as well
as evaluating the overall consolidated financial statement presentation. We
believe that our audits provide a reasonable basis for our opinion.

In our opinion, the consolidated financial statements and consolidated
financial highlights referred to above present fairly, in all material respects,
the consolidated financial position of The BlackRock Advantage Term Trust Inc.
as of December 31, 1999, and the results of its consolidated operations, its
consolidated cash flows, the changes in its consolidated net assets and the
consolidated financial highlights for the respective stated periods in
conformity with generally accepted accounting principles.

/s/ Deloitte & Touche LLP
- -------------------------
Deloitte & Touche LLP

New York, New York
February 11, 2000

16
<PAGE>

- --------------------------------------------------------------------------------
THE BLACKROCK ADVANTAGE TERM TRUST INC.
TAX INFORMATION
- --------------------------------------------------------------------------------

We wish to advise you as to the federal tax status of dividends and
distributions paid by the Trust during the taxable year ended December 31, 1999.

During the fiscal year ended December 31, 1999, the Trust paid aggregate
dividends of $.6021 per share from net investment income taxable as 1999 income
to shareholders of record from January 1 to December 31, 1999. For federal
income tax purposes, the dividends you received are reportable in your 1999
federal income tax return as ordinary income. Further, we wish to advise you
that your income dividends do not qualify for the dividends received deduction.

We are required by Massachusetts, Missouri, and Oregon to inform you that
dividends which have been derived from interest on federal obligations are not
taxable to shareholders. Please be advised that 11.9% of the divdends paid from
ordinary income in the fiscal year ended December 31, 1999 qualify for each of
these states' tax exclusion.

For the purpose of preparing your 1999 annual federal income tax return,
however, you should report the amounts as reflected on the appropriate Form 1099
DIV which will be mailed to you in January 2000.

- --------------------------------------------------------------------------------
DIVIDEND REINVESTMENT PLAN
- --------------------------------------------------------------------------------

Pursuant to the Trust's Dividend Reinvestment Plan (the "Plan"),
shareholders may elect to have all distributions of dividends and capital gains
reinvested by State Street Bank and Trust Company (the "Plan Agent") in Trust
shares pursuant to the Plan. Shareholders who do not participate in the Plan
will receive all distributions in cash paid by check in United States dollars
mailed directly to the shareholders of record (or if the shares are held in
street or other nominee name, then to the nominee) by the transfer agent, as
dividend disbursing agent.

The Plan Agent serves as agent for the shareholders in administering the
Plan. After the Trust declares a dividend or determines to make a capital gain
distribution, the Plan Agent will, as agent for the participants, receive the
cash payment and use it to buy Trust shares in the open market on the New York
Stock Exchange or elsewhere, for the participants' accounts. The Trust will not
issue any new shares under the Plan below net asset value.

Participants in the Plan may withdraw from the Plan upon written notice to
the Plan Agent and will receive certificates for whole Trust shares and a cash
payment will be made for any fraction of a Trust share.

The Plan Agent's fee for the handling of the reinvestment of dividends and
distributions will be paid by the Trust. However, each participant will pay a
pro rata share of brokerage commissions incurred with respect to the Plan
Agent's open market purchases in connection with the reinvestment of dividends
and distributions. The automatic reinvestment of dividends and distributions
will not relieve participants of any federal, state or local income taxes that
may be payable on such dividends or distributions.

The Trust reserves the right to amend or terminate the Plan as applied to
any dividend or distribution paid subsequent to written notice of the change
sent to all shareholders of the Trust at least 90 days before the record date
for the dividend or distribution. The Plan also may be amended or terminated by
the Plan Agent upon at least 90 days' written notice to all shareholders of the
Trust. All correspondence concerning the Plan should be directed to the Plan
Agent at (800) 699-1BFM. The addresses are on the front of this report.

- --------------------------------------------------------------------------------
ADDITIONAL INFORMATION
- --------------------------------------------------------------------------------

There have been no material changes in the Trust's investment objectives
or policies that have not been approved by the shareholders or to its charter or
by-laws or in the principal risk factors associated with investment in the
Trust. There have been no changes in the persons who are primarily responsible
for the day-to-day management of the Trust's portfolio.

We have transitioned into the Year 2000, and it is business as usual at
BlackRock.

17
<PAGE>

- --------------------------------------------------------------------------------
THE BLACKROCK ADVANTAGE TERM TRUST INC.
INVESTMENT SUMMARY
- --------------------------------------------------------------------------------

THE TRUST'S INVESTMENT OBJECTIVE

The BlackRock Advantage Term Trust Inc.'s primary investment objective is to
manage a portfolio of investment grade fixed income securities that will return
$10 per share (the initial public offering price per share) to investors on or
shortly before December 31, 2005.

WHO MANAGES THE TRUST?

BlackRock Advisors, Inc. is an SEC-registered investment advisor. As of December
31, 1999, BlackRock and its affiliates (together, "BlackRock") managed over $165
billion on behalf of taxable and tax-exempt clients worldwide. Strategies
include fixed income, equity and cash and may incorporate both domestic and
international securities. Domestic fixed income strategies utilize the
government, mortgage, corporate and municipal bond sectors. BlackRock manages
twenty-two closed-end funds that are traded on either the New York or American
Stock exchanges, and a $27 billion family of open-end funds. BlackRock manages
over 580 accounts, domiciled in the United States and overseas.

WHAT CAN THE TRUST INVEST IN?

The Trust may invest in all fixed income securities rated investment grade or
higher ("AAA", "AA", "A" or "BBB"). Examples of securities in which the Trust
may invest include U.S. government and government agency securities, zero coupon
securities, mortgage-backed securities, corporate debt securities, asset-backed
securities, U.S. dollar-denominated foreign debt securities and municipal
securities. Under current market conditions, BlackRock expects that the primary
investments of the Trust will be U.S. government securities, securities backed
by government agencies (such as mortgage-backed securities) and corporate debt
securities.

WHAT IS THE ADVISOR'S INVESTMENT STRATEGY?

The Advisor will seek to meet the Trust's investment objective by managing the
assets of the Trust so as to return the initial offering price ($10 per share)
at maturity. The Advisor will implement a conservative strategy that will seek
to closely match the maturity of the assets of the portfolio with the future
return of the initial investment at the end of 2005. At the Trust's termination,
the Advisor expects that the value of the securities which have matured,
combined with the value of the securities that are sold will be sufficient to
return the initial offering price to investors. On a continuous basis, the Trust
will seek its objective by actively managing its assets in relation to market
conditions, interest rate changes and, importantly, the remaining term to
maturity of the Trust.

In order to maintain competitive yields as the Trust approaches maturity and
depending on market conditions, the Advisor will attempt to purchase securities
with call protection or maturities as close to the Trust's maturity date as
possible. Securities with call protection should provide the portfolio with some
degree of protection against reinvestment risk during times of lower prevailing
interest rates. Since the Trust's primary goal is to return the initial offering
price at maturity, any cash that the Trust receives prior to its maturity date
(i.e. cash from early and regularly scheduled payments of principal on
mortgage-backed securities) will be reinvested in securities with maturities
which coincide with the remaining term of the Trust. Since shorter-term
securities typically yield less than longer-term securities, this strategy will
likely result in a decline in the Trust's income over time. It is important to
note that the Trust will be managed so as to preserve the integrity of the
return of the initial offering price.

HOW ARE THE TRUST'S SHARES PURCHASED AND SOLD? DOES THE TRUST PAY DIVIDENDS
REGULARLY?

The Trust's shares are traded on the New York Stock Exchange which provides
investors with liquidity on a daily basis. Orders to buy or sell shares of the
Trust must be placed through a registered broker or financial advisor. The Trust
pays monthly dividends which are typically paid on the last business day of the
month. For shares held in the shareholder's name, dividends may be reinvested in
additional shares of the fund through the Trust's transfer agent, State Street
Bank & Trust Company. Investors who wish to hold shares in a brokerage account
should check with their financial advisor to determine whether their brokerage
firm offers dividend reinvestment services.

18
<PAGE>

LEVERAGE CONSIDERATIONS IN A TERM TRUST

Under current market conditions, leverage increases the income earned by the
Trust. The Trust employs leverage primarily through the use of reverse
repurchase agreements and dollar rolls. Leverage permits the Trust to borrow
money at short-term rates and reinvest that money in longer-term assets which
typically offer higher interest rates. The difference between the cost of the
borrowed funds and the income earned on the proceeds that are invested in longer
term assets is the benefit to the Trust from leverage.

Leverage also increases the duration (or price volatility of the net assets) of
the Trust, which can improve the performance of the fund in a declining rate
environment, but can cause net assets to decline faster than the market in a
rising rate environment. The Advisor's portfolio managers continuously monitor
and regularly review the Trust's use of leverage and the Trust may reduce, or
unwind, the amount of leverage employed should the Advisor consider that
reduction to be in the best interests of the shareholders.

SPECIAL CONSIDERATIONS AND RISK FACTORS RELEVANT TO TERM TRUSTS

THE TRUST IS INTENDED TO BE A LONG-TERM INVESTMENT AND IS NOT A SHORT-TERM
TRADING VEHICLE.

RETURN OF INITIAL INVESTMENT. Although the objective of the Trust is to return
its initial offering price upon termination, there can be no assurance that this
objective will be achieved. DIVIDEND CONSIDERATIONS. The income and dividends
paid by the Trust are likely to decline to some extent over the term of the
Trust due to the anticipated shortening of the dollar-weighted average maturity
of the Trust's assets. INTEREST-ONLY SECURITIES (IO). The yield to maturity on
an IO class is extremely sensitive to the rate of principal payments (including
prepayments) on the related underlying mortgage assets, and a rapid rate of
principal payments may have a material adverse affect on such security's yield
to maturity. If the underlying mortgage assets experience greater than
anticipated prepayments of principal, the Trust may fail to recoup fully its
initial investment in these securities even if the securities are rated AAA by
S&P or Aaa by Moody's.

LEVERAGE. The Trust utilizes leverage through reverse repurchase agreements and
dollar rolls, which involves special risks. The Trust's net asset value and
market value may be more volatile due to its use of leverage. MARKET PRICE OF
SHARES. The shares of closed-end investment companies such as the Trust trade on
the New York Stock Exchange (NYSEsymbol: BAT) and as such are subject to supply
and demand influences. As a result, shares may trade at a discount or a premium
to their net asset value.

MORTGAGE-BACKED AND ASSET-BACKED SECURITIES. The cash flow and yield
characteristics of these securities differ from traditional debt securities. The
major differences typically include more frequent payments and the possibility
of prepayments which will change the yield to maturity of the security.

CORPORATE DEBT SECURITIES. The value of corporate debt securities generally
varies inversely with changes in prevailing market interest rates. The Trust may
be subject to certain reinvestment risks in environments of declining interest
rates. ZERO COUPON SECURITIES. Such securities receive no cash flows prior to
maturity, therefore interim price movements on these securities are generally
more sensitive to interest rate movements than securities that make periodic
coupon payments. These securities appreciate in value over time and can play an
important role in helping the Trust achieve its primary objective.

ILLIQUID SECURITIES. The Trust may invest in securities that are illiquid,
although under current market conditions the Trust expects to do so to only a
limited extent. These securities involve special risks. NON-U.S. SECURITIES. The
Trust may invest up to 10% of its assets in non-U.S. dollar-denominated
securities which involve special risks such as currency, political and economic
risks, although under current market conditions does not do so. ANTITAKEOVER
PROVISIONS. Certain antitakeover provisions will make a change in the Trust's
business or management more difficult without the approval of the Trust's Board
of Directors and may have the effect of depriving shareholders of an opportunity
to sell their shares at a premium above the prevailing market price.

<PAGE>

- --------------------------------------------------------------------------------
THE BLACKROCK ADVANTAGE TERM TRUST INC.
GLOSSARY
- --------------------------------------------------------------------------------

ADJUSTABLE RATE MORTGAGE-
BACKED SECURITIES (ARMS): Mortgage instruments with interest rates that
adjust at periodic intervals at a fixed amount
over the market levels of interest rates as
reflected in specified indexes. ARMS are backed
by mortgage loans secured by real property.

ASSET-BACKED SECURITIES: Securities backed by various types of
receivables such as automobile and credit card
receivables.

CLOSED-END FUND: Investment vehicle which initially offers a
fixed number of shares and trades on a stock
exchange. The fund invests in a portfolio of
securities in accordance with its stated
investment objectives and policies.

COLLATERALIZED MORTGAGE
OBLIGATIONS (CMOS): Mortgage-backed securities which separate
mortgage pools into short-, medium-, and
long-term securities with different priorities
for receipt of principal and interest. Each class
is paid a fixed or floating rate of interest at
regular intervals. Also known as multiple-class
mortgage pass-throughs.

COMMERCIAL MORTGAGE

BACKED SECURITIES (CMBS): Mortgage-backed securities secured or backed by
DISCOUNT: mortgage loans on commercial properties. When a
fund's net asset value is greater than its stock
price the fund is said to be trading at a
discount.

DIVIDEND: Income generated by securities in a portfolio
and distributed to shareholders after the
deduction of expenses. This Trust declares and
pays dividends on a monthly basis.

DIVIDEND REINVESTMENT: Shareholders may elect to have all dividends
and distributions of capital gains automatically
reinvested into additional shares of the Trust.

FHA: Federal Housing Administration, a government
agency that facilitates a secondary mortgage
market by providing an agency that guarantees
timely payment of interest and principal on
mortgages.

FHLMC: Federal Home Loan Mortgage Corporation, a
publicly owned, federally chartered corporation
that facilitates a secondary mortgage market by
purchasing mortgages from lenders such as savings
institutions and reselling them to investors by
means of mortgage-backed securities. Obligations
of FHLMC are not guaranteed by the U.S.
government, however; they are backed by FHLMC's
authority to borrow from the U.S. government.
Also known as Freddie Mac.

FNMA: Federal National Mortgage Administration, a
publicly owned, federally chartered corporation
that facilitates a secondary mortgage market by
purchasing mortgages from lenders such as savings
institutions and reselling them to investors by
means of mortgage-backed securities. Obligations
of FNMA are not guaranteed by the U.S.
government, however; they are backed by FNMA's
authority to borrow from the U.S. government.
Also known as Fannie Mae.

GNMA: Government National Mortgage Association, a U.S.
government agency that facilitates a secondary
mortgage market by providing an agency that
guarantees timely payment of interest and
principal on mortgages. GNMA's obligations are
supported by the full faith and credit of the
U.S. Treasury. Also known as Ginnie Mae.

GOVERNMENT SECURITIES: Securities issued or guaranteed by the U.S.
government, or one of its agencies or
instrumentalities, such as GNMA, FNMA and FHLMC.

20
<PAGE>

INVERSE-FLOATING RATE MORTGAGE: Mortgage instruments with coupons
that adjust at periodic intervals according to a
formula which sets inversely with a market level
interest rate index.

INTEREST-ONLY SECURITIES: Mortgage securities including CMBS
that receive only the interest cash flows from an
underlying pool of mortgage loans or underlying
pass-through securities.

MARKET PRICE: Price per share of a security trading in the
secondary market. For a closed-end fund, this is
the price at which one share of the fund trades
on the stock exchange. If you were to buy or sell
shares, you would pay or receive the market
price.

MORTGAGE DOLLAR ROLLS: A mortgage dollar roll is a transaction in which
the Trust sells mortgage-backed securities for
delivery in the current month and simultaneously
contracts to repurchase substantially similar
(although not the same) securities on a specified
future date. During the "roll" period, the Trust
does not receive principal and interest payments
on the securities, but is compensated for giving
up these payments by the difference in the
current sales price (for which the security is
sold) and lower price that the Trust pays for the
similar security at the end date as well as the
interest earned on the cash proceeds of the
initial
sale.

MORTGAGE PASS-THROUGHS: Mortgage-backed securities issued by FNMA, FHLMC,
GNMA or FHA.
NET ASSET VALUE (NAV): Net asset value is the total market value of all
securities and other assets held by the Trust,
plus income accrued on its investments, minus any
liabilities including accrued expenses, divided
by the total number of outstanding shares. It is
the underlying value of a single share on a given
day. Net asset value for the Trust is calculated
weekly and published in BARRON'S on Saturday and
THE WALL STREET JOURNAL on Monday.

PRINCIPAL-ONLY SECURITIES: Mortgage securities that receive only the
principal cash flows from an underlying pool of
mortgage loans or underlying pass-through
securities.

PROJECT LOANS: Mortgages for multi-family, low- to middle-income
housing.

PREMIUM: When a fund's stock price is greater than its
net asset value, the fund is said to be trading
at a premium.

REMIC: A real estate mortgage investment conduit is a
multiple-class security backed by mortgage-backed
securities or whole mortgage loans and formed as
a trust, corporation, partnership, or segregated
pool of assets that elects to be treated as a
REMIC for federal tax purposes. Generally, FNMA
REMICs are formed as trusts and are backed by
mortgage-backed securities.

RESIDUALS: Securities issued in connection with
collateralized mortgage obligations that
generally represent the excess cash flow from the
mortgage assets underlying the CMO after payment
of principal and interest on the other CMO
securities and related administrative expenses.

REVERSE REPURCHASE
AGREEMENTS: In a reverse repurchase agreement, the Trust
sells securities and agrees to repurchase them at
a mutually agreed date and price. During this
time, the Trust continues to receive the
principal and interest payments from that
security. At the end of the term, the Trust
receives the same securities that were sold for
the same initial dollar amount plus interest on
the cash proceeds of the initial sale.

STRIPPED MORTGAGE-BACKED
SECURITIES: Arrangements in which a pool of assets is
separated into two classes that receive different
proportions of the interest and principal
distributions from underlying mortgage-backed
securities. IO's and PO's are examples of strips.

<PAGE>

- --------------------------------------------------------------------------------
BLACKROCK ADVISORS, INC.
SUMMARY OF CLOSED-END FUNDS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>

TAXABLE TRUSTS
- ------------------------------------------------------------------------------------------------

STOCK MATURITY
PERPETUAL TRUSTS SYMBOL DATE
------ ------
<S> <C> <C>
The BlackRock Income Trust Inc. BKT N/A
The BlackRock North American Government Income Trust Inc. BNA N/A
The BlackRock High Yield Trust BHY N/A

TERM TRUSTS
The BlackRock Target Term Trust Inc. BTT 12/00
The BlackRock 2001 Term Trust Inc. BTM 06/01
The BlackRock Strategic Term Trust Inc. BGT 12/02
The BlackRock Investment Quality Term Trust Inc. BQT 12/04
The BlackRock Advantage Term Trust Inc. BAT 12/05
The BlackRock Broad Investment Grade 2009 Term Trust Inc. BCT 12/09

TAX-EXEMPT TRUSTS
- -----------------------------------------------------------------------------------------------

STOCK MATURITY
PERPETUAL TRUSTS SYMBOL DATE
------ ------
The BlackRock Investment Quality Municipal Trust Inc. BKN N/A
The BlackRock California Investment Quality Municipal Trust Inc. RAA N/A
The BlackRock Florida Investment Quality Municipal Trust RFA N/A
The BlackRock New Jersey Investment Quality Municipal Trust Inc. RNJ N/A
The BlackRock New York Investment Quality Municipal Trust Inc. RNY N/A
The BlackRock Pennsylvania Strategic Municipal Trust BPS N/A
The BlackRock Strategic Municipal Trust BSD N/A

TERM TRUSTS
The BlackRock Municipal Target Term Trust Inc. BMN 12/06
The BlackRock Insured Municipal 2008 Term Trust Inc. BRM 12/08
The BlackRock California Insured Municipal 2008 Term Trust Inc. BFC 12/08
The BlackRock Florida Insured Municipal 2008 Term Trust BRF 12/08
The BlackRock New York Insured Municipal 2008 Term Trust Inc. BLN 12/08
The BlackRock Insured Municipal Term Trust Inc. BMT 12/10

</TABLE>

22
<PAGE>

- --------------------------------------------------------------------------------
BLACKROCK ADVISORS, INC.
AN OVERVIEW
- --------------------------------------------------------------------------------

BlackRock Advisors, Inc. (the "Advisor") is an SEC-registered investment
advisor. As of December 31, 1999, the Advisor and its affiliates (together,
"BlackRock") managed over $165 billion on behalf of taxable and tax-exempt
clients worldwide. Strategies include fixed income, equity and cash and may
incorporate both domestic and international securities. BlackRock manages
twenty-two closed-end funds that are traded on either the New York or American
stock exchanges, and a $27 billion family of open-end funds. BlackRock manages
over 580 accounts, domiciled in the United States and overseas.

BlackRock's fixed income product was introduced in 1988 by a team of
highly seasoned fixed income professionals. These professionals had extensive
experience creating, analyzing and trading a variety of fixed income
instruments, including the most complex structured securities. In fact, several
individuals at BlackRock were responsible for developing many of the major
innovations in the mortgage-backed and asset-backed securities markets,
including the creation of the first CMO, the floating rate CMO, the
senior/subordinated pass-through and the multi-class asset-backed security.

BlackRock is unique among asset management and advisory firms in the
emphasis it places on the development of proprietary analytical capabilities.
Over one quarter of the firm's professionals is dedicated to the design,
maintenance and use of these systems, which are not otherwise available to
investors. BlackRock's proprietary analytical tools are used for evaluating, and
designing fixed income investment strategies for client portfolios. Securities
purchased include mortgages, corporate bonds, municipal bonds and a variety of
hedging instruments.

BlackRock has developed investment products that respond to investors'
needs and has been responsible for several major innovations in closed-end
funds. In fact, BlackRock introduced the first closed-end mortgage fund, the
first taxable and tax-exempt closed-end funds to offer a finite term, the first
closed-end fund to achieve a AAA rating by Standard & Poor's, and the first
closed-end fund to invest primarily in North American Government securities.
Currently, BlackRock's closed-end funds have dividend reinvestment plans, which
are designed to provide ongoing demand for the stock in the secondary market.
BlackRock manages a wide range of investment vehicles, each having specific
investment objectives and policies.

In view of our continued desire to provide a high level of service to all
our shareholders, BlackRock maintains a toll-free number for your questions. The
number is (800) 227-7BFM (7236). We encourage you to call us with any questions
that you may have about your BlackRock funds and we thank you for the continued
trust that you place in our abilities.

If you would like further information

<PAGE>

BLACKROCK

DIRECTORS
Laurence D. Fink, CHAIRMAN
Andrew F. Brimmer
Richard E. Cavanagh
Kent Dixon
Frank J. Fabozzi
James Clayburn La Force, Jr.
Walter F. Mondale
Ralph L. Schlosstein

OFFICERS
Ralph L. Schlosstein, PRESIDENT
Scott Amero, VICE PRESIDENT
Keith T. Anderson, VICE PRESIDENT
Michael C. Huebsch, VICE PRESIDENT
Robert S. Kapito, VICE PRESIDENT
Richard M. Shea, VICE PRESIDENT/TAX
Henry Gabbay, TREASURER
James Kong, ASSISTANT TREASURER
Karen H. Sabath, SECRETARY

INVESTMENT ADVISOR
BlackRock Advisors, Inc.
400 Bellevue Parkway
Wilmington, DE 19809
(800) 227-7BFM

ADMINISTRATOR
Prudential Investments Fund Management LLC
Gateway Center Three
100 Mulberry Street
Newark, NJ 07102-4077

CUSTODIAN AND TRANSFER AGENT
State Street Bank and Trust Company
One Heritage Drive
North Quincy, MA 02171
(800) 699-1BFM

INDEPENDENT AUDITORS
Deloitte & Touche LLP
Two World Financial Center
New York, NY 10281-1434

LEGAL COUNSEL
Skadden, Arps, Slate, Meagher & Flom LLP
Four Times Square
New York, NY 10036

This report is for shareholder information. This is not a prospectus intended
for use in the purchase or sale of any securities.

THE BLACKROCK ADVANTAGE TERM TRUST INC.
c/o Prudential Investments Fund Management LLC
Gateway Center Three
100 Mulberry Street
Newark, NJ 07102-4077
(800) 227-7BFM

THE BLACKROCK
ADVANTAGE
TERM TRUST INC.
===========================================
CONSOLIDATED
ANNUAL REPORT
DECEMBER 31, 1999

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