BLACKROCK 1999 TERM TRUST INC, N-30D, 1999-03-04

BLACKROCK 1999 TERM TRUST INC
N-30D, 1999-03-04

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THE BLACKROCK 1999 TERM TRUST INC.
ANNUAL REPORT TO SHAREHOLDERS
REPORT OF INVESTMENT ADVISER
- --------------------------------------------------------------------------------

January 31, 1999

Dear Shareholder:

Over the past twelve months, U.S. Treasury securities have experienced a
strong rally, as investors sought a safe haven from global market turmoil and
the Federal Reserve continued to cut interest rates. Other segments of the fixed
income market have lagged behind Treasuries, but still produced generally
positive returns since our last report. We anticipate that the Federal Reserve
will remain prepared to combat any signs of a credit crunch through interest
rate cuts, and given the unstable economic situation in Brazil, the Fed likely
will retain an easing bias.

Despite previous worries of a second half slowdown in 1998, the U.S.
economy continues to expand rapidly, supported by strong consumer spending. This
momentum, however, may not continue as briskly into the new year, based on
weaker corporate profits and a loosening of the labor markets. Already, major
corporations have warned of slower profit growth and announced major layoffs.

This report contains detailed market and portfolio strategy by your
Trust's managers in addition to the Trust's audited financial statements and a
detailed list of the portfolio's holdings. We thank you for your continued
investment in the Trust and look forward to serving your investment needs in the
future.

Sincerely,

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

1
<PAGE>

January 31, 1999
Dear Shareholder:

We are pleased to present the annual report for The BlackRock 1999 Term
Trust Inc. ("the Trust") for the fiscal year ended December 31, 1998. 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 American Stock Exchange under the symbol "BNN". The
Trust's investment objective is to return $10 per share (its initial offering
price) to shareholders on or about December 31, 1999 while providing high
current income. Although there can be no guarantee, BlackRock is confident that
the Trust can achieve its investment objectives. The Trust seeks these
objectives 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) and commercial
mortgage-backed securities. Historically, the Trust has been primarily invested
in corporate debt securities and collateralized mortgage obligations (CMOs). All
of the Trust's assets must be rated "BBB" by Standard & Poor's or "Baa" 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 bonds per share) over the period:

- --------------------------------------------------------------------------------
12/31/98 12/31/97 Change High Low
-------- -------- ------ ---- ---
Stock Price $9.75 $9.375 4.00% $9.8125 $9.375
Net Asset
Value (NAV) $10.04 $9.88 1.62% $10.09 $9.89
5-Year U.S.
Treasury Note 4.54% 5.71% (20.49%) 5.78% 3.97%
- --------------------------------------------------------------------------------

THE FIXED INCOME MARKETS

The first half of the Trust's fiscal year saw Treasury yields decline
towards historic lows. These lows were the result of budget surplus projections
as well as the Federal Reserve's decision to move from a tightening bias to a
neutral interest rate policy. The positive economic momentum throughout the
first half of the fiscal year was strengthened by unseasonably warm weather that
led to increased consumer spending and job gains, which softened the negative
impact on trade from the Asian financial crisis.

The second half of the trust's fiscal year witnessed virtually
unparalleled market turbulence. Although consumers continued their spending
domestically, demand for U.S. goods abroad faltered, as the strong dollar and
overseas weakness, especially in Asia, drove prices for U.S. goods higher
relative to foreign goods.

Toward year-end, U.S. GDP growth rebounded; however, the instability in
global financial markets began to rattle investor confidence. The devaluation of
the Russian ruble and the fear of a possible devaluation of the Brazilian
currency caused a flight-to-quality to U.S. Treasuries. Corporate yield spreads
across all credits to Treasuries widened dramatically as a result of the
sell-off. This dramatic shift of investor sentiment culminated in the near
collapse of a prominent hedge fund.

2
<PAGE>

The Treasury market rally pushed Treasury yields to historic levels below
the 5% barrier. In response to the financial fragility in the third quarter of
1998, the Fed eased interest rates on September 29, 1998 by 25bps and again on
October 15, in an unusual between-meetings move. On November 17, the Fed eased
interest rates again by 25bps.

These rate cuts seem to have had their desired effect on the US
economy--which finished the year with a 3.5% growth rate. Growth in 1999,
however, may decrease significantly and further easing of interest rates by the
Federal Reserve is possible as the Western economies will need to provide
support for the global economy. With economic growth and labor markets expected
to soften during the first half of 1999, we expect inflation to remain under
control.

The global instability which resulted in a flight-to-quality to US
Treasuries caused mortgages to severely underperform Treasuries as well as the
broad bond market. However, as these markets have regained some stability,
investors have begun to regain confidence in the international markets.
Consequently, we believe that the current attractive yield spreads in the
corporate and mortgage markets will provide the basis for outperforming
Treasuries in the coming year.

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, 1997 asset
composition.

COMPOSITION DECEMBER 31, 1998 DECEMBER 31, 1997
- --------------------------------------------------------------------------------
Corporate Bonds 52% 45%
- --------------------------------------------------------------------------------
Principal-Only Mortgage-Backed Securities 10% 9%
- --------------------------------------------------------------------------------
Municipal Securities 10% 8%
- --------------------------------------------------------------------------------
Agency Multiple Class Mortgage Pss-Throughs 8% 7%
- --------------------------------------------------------------------------------
Asset-Backed Securities 6% 8%
- --------------------------------------------------------------------------------
Mortgage Pass-Throughs 5% 3%
- --------------------------------------------------------------------------------
U.S. Government Securities 4% 6%
- --------------------------------------------------------------------------------
Adjustable-Rate Mortgages 3% --
- --------------------------------------------------------------------------------
Interest-Only Mortgage-Backed Securities 2% 4%
- --------------------------------------------------------------------------------
Non Agency Multiple Class Mortgage Pass-Throughs -- 4%
- --------------------------------------------------------------------------------
Inverse-Floating Rate Mortgages -- 4%
- --------------------------------------------------------------------------------
CMO Residuals -- 1%
Certificate of Deposit -- 1%
- --------------------------------------------------------------------------------

- --------------------------------------------------------------------------------
RATING % OF CORPORATES
----------------------
CREDIT RATING DECEMBER 31, 1998 DECEMBER 31, 1997
- --------------------------------------------------------------------------------
AA or equivalent 11% 6%
- --------------------------------------------------------------------------------
A or equivalent 58% 67%
- --------------------------------------------------------------------------------
BBB or equivalent 22% 27%
- --------------------------------------------------------------------------------
BB or equivalent 9% --
- --------------------------------------------------------------------------------

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 offered both attractive yield spreads over
Treasury securities and a maturity date matching the Trust's termination date of
December 31, 1999. 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.

Lastly, as The BlackRock 1999 Term Trust approaches maturity, we are proud
to announce that the Trust is extremely well positioned to achieve its primary
investment objective of returning $10 per share to shareholders upon termination
at the end of December 1999. Although we are almost a full year away from
termination, we have already initiated the operational and administrative
processes necessary for a successful and smooth termination of the Trust.

We look forward to continuing to manage the Trust to benefit from the
opportunities available to investors in the fixed income markets as well as to
maintain the Trust's ability to meet its investment objectives. We thank you for
your investment in the BlackRock 1999 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. You can also reach us via
e-mail at [email protected]

Sincerely,

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

- --------------------------------------------------------------------------------
THE BLACKROCK 1999 TERM TRUST INC.
- --------------------------------------------------------------------------------
Symbol on New York Stock Exchange: BNN
- --------------------------------------------------------------------------------
Initial Offering Date: December 23, 1992
- --------------------------------------------------------------------------------
Closing Stock Price as of 12/31/98: $9.75
- --------------------------------------------------------------------------------
Net Asset Value as of 12/31/98: $10.04
- --------------------------------------------------------------------------------
Yield on Closing Stock Price as of 12/31/98 (9.75)1: 4.10%
- --------------------------------------------------------------------------------
Current Monthly Distribution per Share2: $0.0333
- --------------------------------------------------------------------------------
Current Annualized Distribution per Share2: $0.40
- --------------------------------------------------------------------------------

- ----------
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>

- -----------------------------------
THE BLACKROCK 1999 TERM TRUST INC.
PORTFOLIO OF INVESTMENTS
DECEMBER 31, 1998
- --------------------------------------------------------------------------------
PRINCIPAL
RATING* AMOUNT VALUE
(UNAUDITED) (000) DESCRIPTION (NOTE 1)
- --------------------------------------------------------------------------------
LONG-TERM INVESTMENTS--114.6%
MORTGAGE PASS-THROUGHS--5.3%
Federal Home Loan Mortgage Corp.,
$3,192 5.50%, 9/01/99, 5 year,
Multifamily ....................... $ 3,191,924
2,495 Federal Housing Administration,
Massachusetts Hsg. Fin. Agcy.,
Series C, 6.85%, 4/01/19 .......... 2,506,327
5,836 Federal National Mortgage Association,
8.775%, 8/01/99, Multifamily ...... 5,863,229
-----------
11,561,480
-----------
MULTIPLE CLASS MORTGAGE
PASS-THROUGHS--14.1%
AAA 169 Citicorp Mortgage Securities, Inc.,
Series 1993-11, Class A-1, 1/25/06.. 168,483
Federal Home Loan Mortgage Corp.,
Multiclass Mortgage Participation
Certificates,
289 Series 1190, Class 1190-G,
11/15/20 ......................... 287,777
2,268 Series 1234, Class 1234-H
5/15/99 (ARM) .................... 2,285,836
2,350 Series 1296, Class 1296- H,
7/15/99 .......................... 2,386,745
1,452 Series 1329, Class 1329-SA,
8/15/99 (ARM) .................... 1,473,913
517 Series 1330, Class 1330-I,
9/15/99 (ARM) .................... 523,554
539 Series 1330, Class 1330-M,
9/15/99 (ARM) .................... 211,824
2,284 Series 1444, Class 1444-I,
1/15/00 (ARM) .................... 2,323,100
802 Series 1444, Class 1444-K,
1/15/00 (ARM) .................... 818,038
1,264 Series 1505, Class 1505-ID,
9/15/15 (I) ...................... 44,520
1,612 Series 1987, Class 1987-SP,
3/15/12 (ARM) .................... 1,637,365
4,011 Series 1970, Class 1970-PA,
7/15/08 .......................... 4,007,628
1,174 Series 1998, Class1998-S,
3/17/07 (ARM) 1,223,444
Federal National Mortgage Association,
REMIC Pass-Through Certificates,
761 Trust 1992-62, Class 62-S,
5/25/99 (ARM) .................... 768,570
888 Trust 1992-106, Class 106-S,
6/25/99 (ARM) .................... 896,587
587 Trust 1992-176, Class-176-FA,
10/25/99 (ARM) ................... 582,800
2,943 Trust 1992-199, Class 199-SB,
11/25/99 (ARM) ................... 2,884,552
543 Trust 1993-22, Class 22-FA,
9/25/09 .......................... 542,495
410 Trust 1993-193, Class 193-PC,
9/25/23 .......................... 397,357
1,462 Trust 1993-G33, Class 33-P,
9/25/14 (I) ...................... 38,718
1,473 Trust 1994-8, Class 8-TA,
9/17/13 (I) ...................... 37,735
3,662 Trust 1998-47, Class 47-S,
11/18/04 ......................... 3,702,782
Government National Mortgage Association,
REMIC Pass-Through Certificates,
1,189 Trust 1997-8, Class 8-SE,
4/16/17 (I) ...................... 1,208,395
2,102 Trust 1997-8, Class 8-SG,
8/16/18 (I) ...................... 2,149,049
-----------
30,601,267
-----------
COMMERCIAL MORTGAGE-BACKED
SECURITIES--0.9%
A 1,283 Carolina First SBL Trust,
Series 1196, Class B, 3/18/27** .... 1,279,419
CBA Mortgage Corp.,
AAA 288 Series 1993-C1, Class A-2, 12/25/03.. 279,078
A 367 Series 1993-C1, Class C, 12/25/03 354,634
-----------
1,913,131
-----------
Corporate Bonds--59.1%
Finance & Banking--26.8%
AA- 3,350 Associates Corp. of
North America, 6.75%, 10/15/99 ...... 3,386,816
Aa3 4,000 Bankamerica Corp.,
9.75%, 5/15/99 ...................... 4,066,160
Citigroup, Inc.,
AA- 3,000 7.75%, 6/15/99 ...................... 3,030,960
A+ 4,200 9.75%, 8/01/99 ...................... 4,303,236
Fleet Financial Group,
A- 5,000 8.625%, 12/15/99 .................... 5,128,417
A- 3,000 9.85%, 6/01/99 ...................... 3,052,350
A+ 2,500 Goldman Sachs Group LP,
6.875%, 9/15/99** ................... 2,512,950
International Lease Finance Corp.,
A+ 1,100 6.09%, 11/08/99 ..................... 1,108,844
A+ 4,000 6.30%, 11/01/99 ..................... 4,038,000
A 5,000 Lehman Brothers Holdings, Inc.,
6.71%, 10/12/99 ..................... 5,017,300
Ba1 2,000 Meditrust,
7.25%, 8/16/99 ...................... 1,984,660
AA- 5,000 Paccar Financial Corp.,
5.84%, 6/15/99 ...................... 5,013,050
BBB+ 3,500 PaineWebber Group, Inc.,
6.31%, 7/22/99 ...................... 3,502,105
Salomon Smith Barney Holdings, Inc.,
Aa3 1,500 7.875%, 10/01/99 .................... 1,528,755
Aa3 529 7.98%, 3/01/00 ...................... 543,611

See Notes to Financial Statements
5

<PAGE>

- --------------------------------------------------------------------------------
PRINCIPAL
RATING* AMOUNT VALUE
(UNAUDITED) (000) DESCRIPTION (NOTE 1)
- --------------------------------------------------------------------------------

A $5,000 Transamerica Finance Corp.,
5.97%, 12/09/99 ................ $ 5,038,516
A2 5,000 Union Planters National Bank,
6.47%, 10/29/99 ................ 5,026,400
-----------
58,282,130
-----------

INDUSTRIALS--26.7%
A+ 1,895 Anheuser Busch Cos., Inc.,
8.75%, 12/01/99 ................ 1,953,764
A 5,000 Bass America, Inc.,
6.75%, 8/01/99 ................. 5,034,000
A+ 5,000 Boeing Capital Corp.,
6.30%, 12/23/99** .............. 5,035,200
AA 2,000 California Petroleum Transport Corp.,
7.30%, 4/01/99 ................. 2,007,234
A+ 5,000 Chrysler Financial Corp.,
9.50%, 12/15/99 ................ 5,191,400
BBB+ 4,400 Icon Capital Resource, Inc.,
6.83%, 5/10/99 ................. 4,371,128
A2 1,104 Kern River Funding,
Series A, 6.42%, 3/31/01** ..... 1,116,898
BBB 3,000 MCN Investment Corp.,
5.84%, 2/01/99 ................. 3,000,480
BBB+ 7,000 NWCG Holdings Corp.,
Series B, Zero Coupon, 6/15/99 . 6,796,510
BBB 2,000 Occidental Petroleum Corp.,
6.08%, 11/26/99 ................ 2,000,760
BBB- 2,750 Pulte Home Corp.,
10.125%, 7/15/99 ............... 2,803,240
A2 5,000 Sears Roebuck & Co.,
7.75%, 10/25/99 ................ 5,093,000
A+ 3,000 Texaco Capital, Inc.,
9.00%, 12/15/99 ................ 3,101,880
A 31,000 Textron Financial Corp.,
7.125%, 10/05/99** ............. 1,009,446
A+ 3,000 TTX Co.,
6.28%, 6/28/99** ............... 3,010,920
BBB+ 2,500 Union Oil Co.,
8.40%, 1/15/99 ................. 2,501,675
A1 4,000 Walt Disney Corp.
Zero Coupon, 10/20/99** ........ 3,887,429
------------
57,914,964
------------
UTILITIES--5.0%
A+ 4,750 Alabama Power Co.,
6.375%, 8/01/99 ................ 4,782,062
A2 4,000 Atlanta Gas Light Co.,
7.30%, 12/10/99 ................ 4,067,880
BBB+ 2,000 Potomac Capital Investment Corp.,
6.73%, 8/09/99** ............... 2,001,072
------------
10,851,014
------------
YANKEE--0.6%
A2 1,272 Nova Corporation of Alberta,
7.25%, 7/06/99 ................. 1,285,178
------------
Total Corporate Bonds 128,333,286
------------
ASSET-BACKED SECURITIES--6.6%
AAA 648 Banc One Auto Grantor Trust,
Series 1996-A, Class A,
6.10%, 10/15/02 ............. 650,958
AAA 1,700 Chevy Chase Auto Receivables,
Series 1997-1, Class A,
6.50%, 10/15/03 ............. 1,718,669
A 800 Fifth Third Bank Auto Trust,
Series 1996-B, Class A,
6.45%, 3/15/02 .............. 804,540
A 728 Ford Credit Grantor Trust,
Series 1995-B, Class A,
5.90%, 10/15/00 ............. 728,195
A2 8,225 Prime Credit Card Trust,
Series 1992-2, Class A,
7.45%, 11/15/02 ............. 8,383,423
A 2,000 Standard Credit Card Master Trust,
Series 1995-3, Class A,
7.85%, 2/07/02 .............. 2,064,376
------------
14,350,161
------------
STRIPPED MORTGAGE-BACKED
Securities--12.5%
Federal Home Loan Mortgage Corp.,
Multiclass Mortgage Participation
Certificates,
3,837 Series 1359, Class 1359-C,
9/15/99 (P/O) ............... 3,773,305
2,051 Series 1440, Class 1440-PK,
8/15/18 (I/O) ............... 129,196
798 Series 1473, Class 1473-JA,
2/15/05 (I/O) ............... 22,002
952 Series 1700, Class 1700-B,
7/15/23 (P/O) ............... 942,350
293 Series 1719, Class 1719-C,
4/15/99 (P/O) ............... 290,270
6,319 Series 1887, Class 1887-J,
7/15/99 (P/O) ............... 6,189,961
6,319 Series 1887, Class 1887- SJ,
7/15/99 (I/O) ............... 249,620
6,826 Series 1972, Class 1972-D,
7/15/23 (P/O) ............... 6,661,419
Federal National Mortgage Association,
REMIC Pass-Through Certificates,
423 Series 1992-59, Class 59-A,
8/25/06 (P/O) ............... 417,610
205 Trust 1992-203, Class 203-JA,
6/25/05 (I/O) ............... 6,569

See Notes to Financial Statements

<PAGE>

Federal National Mortgage Association,
REMIC Pass-Through Cert. (cont'd)
$ 906 Trust 1992-62, Class 62-H,
5/25/99 (P/O) ................ $ 897,910
4,112 Trust 1993-226, Class 226-SB,
5/25/19 (I/O) ................ 184,447
1,110 Trust 1993-4, Class 4-D,
9/25/22 (P/O) ................ 1,091,233
768 Trust 1994-10, Class 93-10,
4/25/20 (P/O) ................ 763,712
19 Trust 1994-15, Class 15-N,
9/25/15 (I/O) ................ 6
5,555 Trust 1994-24, Class 24-D,
11/25/23 (P/O) ............... 5,385,302
2,193 Trust 1997-59, Class 59-PI,
5/18/10 (I/O) ................ 10,279
-----------
27,015,191
-----------

U.S GOVERNMENT SECURITIES--4.4%
UNITED STATES TREASURY NOTES,
3,000 5.75%, 9/30/99 .................... 3,023,910
4,265 6.00%, 8/15/99 .................... 4,299,632
1,715 6.25%, 5/31/99 .................... 1,725,719
550 6.375%, 5/15/99 ................... 553,437
-----------
9,602,698
-----------

TAXABLE MUNICIPAL BONDS--11.7%
AAA 2,000 Alameda County California Pension,
Series A, 7.35%, 12/01/99 ......... 2,039,960
Aaa 2,295 Essex County New Jersey,
Zero Coupon, 11/15/99 ............. 2,199,390
AAA 1,500 Long Beach California Pension,
6.26%, 9/01/99 .................... 1,511,385
A3 500 Los Angeles County California Pension,
Series A, 7.81%, 6/30/99 .......... 506,090
A- 5,000 New YorkCity, G.O. Series G,
6.23%, 2/01/99 .................... 5,002,750
BBB+ 3,000 New York St. Dor. Auth. Rev.,
6.32%, 4/01/99 .................... 3,006,510
BBB+ 1,550 New York St. Dorm. Auth.,
Pension Reserve, 6.45%, 10/01/99 .. 1,562,540
AAA 497 North Slope Borough Alaska,
Series A, Zero Coupon, 6/30/99 .... 485,086
AAA 5,000 Oakland California Pension,
Series A, 6.20%, 12/15/99 ......... 5,052,050
AAA 3,000 Ventura County California Pension,
5.92%, 11/01/99 3,020,430
AAA 1,000 Western Minnesota Muni.
Pwr. Agcy. Supply, Series A,
6.05%, 1/01/99 .................... 1,000,000
-----------
25,386,191
-----------
Total long-term investments--114.6%
(cost $247,880,005) ............... 248,763,405
-----------
SHORT-TERM INVESTMENT--2.3%
Discount Notes
4,890 Federal Home Loan MortgageCorp.,
4.70%, 1/04/99
(cost $4,888,085) ................ 4,888,085
-----------
TOTAL INVESTMENTS--116.9%
(cost $252,768,090) .............. 253,651,490
Liabilities in excess of other
assets--(16.9%) .................. (36,602,248)
------------
NET ASSETS--100% ...................... $217,049,242
============

- --------------
* Using the higher of Standard & Poor's or Moody's rating.
** Private placement restricted as to resale.
+ (Partial) principal amount pledged as collateral for reverse repurchase
agreements.
++ Entire principal amount pledged as collateral for reverse repurchase
agreements.

- --------------------------------------------------------------------------------
KEY TO ABBREVIATIONS
ARM-- Adjustable Rate Mortgage.
CMO-- Collateralized Mortgage Obligation.
G.O.-- General Obligation Bond.
I-- Denotes a CMO with Interest only characteristics.
I/O-- Interest only.
P/O-- Principal only.
REMIC-- Real Estate Mortgage Investment Conduit.
- --------------------------------------------------------------------------------

See Notes to Financial Statements

<PAGE>

- --------------------------------------------------------------------------------
THE BLACKROCK 1999 TERM TRUST INC.
STATEMENT OF ASSETS AND LIABILITIES
DECEMBER 31, 1998
- --------------------------------------------------------------------------------

ASSETS
Investments, at value (cost $252,768,090)
(Note 1) ........................................ $253,651,490
Cash ............................................... 36,620
Interest receivable ................................ 2,993,704
-------------
256,681,814
-------------
LIABILITIES
Reverse repurchase agreements (Note 4) ............. 38,344,942
Dividends payable .................................. 719,632
Interest payable ................................... 176,843
Investment advisory fee payable (Note 2) ........... 71,746
Administration fee payable (Note 2) ................ 18,533
Other accrued expenses ............................. 300,876
-------------
39,632,572
-------------
NET ASSETS ......................................... $217,049,242
=============

Net assets were comprised of:
Common stock, at par (Note 5) ................... $ 216,106
Paid-in capital in excess of par ................ 202,513,145
-------------
202,729,251
Undistributed net investment income ............. 21,333,013
Accumulated net realized losses ................. (7,896,422)
Net unrealized appreciation ..................... 883,400
-------------
Net assets, December 31, 1998 ................... $217,049,242
=============

Net asset value per share:
($217,049,242 / 21,610,583 shares of
common stock issued and outstanding) ............ $10.04
=======

- --------------------------------------------------------------------------------
THE BLACKROCK 1999 TERM TRUST INC.
STATEMENT OF OPERATIONS
YEAR ENDED DECEMBER 31, 1998
- --------------------------------------------------------------------------------

NET INVESTMENT INCOME
Income
Interest (net of premium amortization of
$1,475,934 and net of interest expense of
$3,142,122) .................................... $17,469,810
------------
Operating expenses
Investment advisory .............................. 961,212
Administration ................................... 216,220
Reports to shareholders .......................... 118,000
Custodian ........................................ 59,000
Registration ..................................... 40,000
Audit ............................................ 40,000
Directors ........................................ 30,000
Transfer agent ................................... 15,000
Miscellaneous .................................... 20,992
------------
Total operating expenses ....................... 1,500,424
------------
Net investment income before excise tax ............. 15,969,386
Excise tax ..................................... 175,000
------------
Net investment income ............................... 15,794,386
------------
REALIZED AND UNREALIZED LOSS ON
INVESTMENTS (NOTE 3)
Net realized loss on:
Investments ...................................... (1,794,641)
Short sales ...................................... 370,118
Futures .......................................... 1,052
------------
(1,423,471)
------------
Net change in unrealized appreciation
(depreciation) on:
Investments: ..................................... (1,522,607)
Short sales ...................................... 86,644
------------
(1,435,963)
------------

Net loss on investments .......................... (2,859,434)
------------
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS .................................. $12,934,952
============

See Notes toFinancial Statements.

<PAGE>

- --------------------------------------------------------------------------------
THE BLACKROCK 1999 TERM TRUST INC.
STATEMENT OF CASH FLOWS
YEAR ENDED DECEMBER 31, 1998
- --------------------------------------------------------------------------------
INCREASE (DECREASE) IN CASH
Cash flows provided by operating activities:
Interest received .................................. $21,308,807
Operating expenses and excise taxes paid ........... (1,409,121)
Interest expense paid .............................. (4,103,451)
Sales of short-term portfolio
investments, net ................................. 111,915
Purchase of long-term portfolio investments ........ (56,965,311)
Proceeds from disposition of long-term
portfolio investments ............................ 95,853,115
-----------
Net cash flows provided by operating activities .... 54,795,954
-----------
Cash flows used for financing activities:
Decrease in reverse repurchase agreements .......... (49,258,720)
Cash dividends paid ................................ (8,635,416)
-----------
Net cash flows used for financing activities ....... (57,894,136)
-----------
Net decrease in cash .................................. (3,098,182)
Cash at beginning of year ............................. 3,134,802
-----------
Cash at end of year ................................... $ 36,620
===========

RECONCILIATION OF NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS TO NET CASH FLOWS
PROVIDED BY OPERATING ACTIVITIES
Net increase in net assets resulting
from operations ..................................... $12,934,952
-----------
Decrease in investments ............................... 38,727,080
Net realized loss ..................................... 1,423,471
Decrease in unrealized appreciation
on investments ..................................... 1,522,607
Increase in unrealized depreciation on interest
rate swaps ......................................... (86,644)
Decrease in interest receivable ....................... 697,012
Decrease in receivable for investments sold ........... 692
Decrease in deposits with brokers for
short sales ........................................ 15,318,750
Decrease in securities sold short ..................... (15,046,800)
Decrease in interest payable .......................... (961,329)
Increase in accrued expenses and
other liabilities .................................. 266,163
-----------
Total adjustments .................................. 41,861,002
-----------
Net cash flows provided by operating activities ....... $54,795,954
===========

- --------------------------------------------------------------------------------
THE BLACKROCK 1999 TERM TRUST INC.
STATEMENTS OF CHANGES
IN NET ASSETS
- --------------------------------------------------------------------------------

YEAR ENDED DECEMBER 31,
1998 1997
----------- -------------
INCREASE (DECREASE) IN
NET ASSETS

Operations:

Net investment income ..................... $15,794,386 $ 12,261,094

Net realized gain (loss) on
investments ............................ (1,423,471) 184,591

Net change in unrealized
appreciation/(depreciation)
on investments ......................... (1,435,963) 2,935,103
----------- --------------

Net increase in net assets
resulting from
operations ............................. 12,934,952 15,380,788

Dividends from net investment
income .................................... (9,355,048) (7,915,823)
------------ ------------
Total increase ............................... 3,579,904 7,464,965

NET ASSETS

Beginning of year ............................ 213,469,338 206,004,373
------------ ------------

End of year .................................. $217,049,242 $213,469,338
============ ============

See Notes to Financial Statements.

<PAGE>

- --------------------------------------------------------------------------------
THE BLACKROCK 1999 TERM TRUST INC.
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>

Year Ended December 31,
-----------------------------------------------------------
1998 1997 1996 1995 1994
------- ------- ------ ------ -------
<S> <C> <C> <C> <C> <C>
PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning of year $ 9.88 $ 9.53 $ 9.27 $ 8.42 $ 9.26
------- ------ ------ ------ ------
Net investment income (net of $0.15, $0.30, $0.26,
$0.33 and $0.15, respectively, of interest
expense) 0.74 0.57 0.64 0.63 0.72
Net realized and unrealized gain (loss) (0.15) 0.15 0.03 0.77 (0.93)
------- ------ ------ ------ ------
Net increase (decrease) from investment operations 0.59 0.72 0.67 1.40 (0.21)
------- ------ ------ ------ ------
Dividends from net investment income (0.43) (0.37) (0.41) (0.55) (0.63)
------- ------ ------ ------ ------

Net asset value, end of year* $ 10.04 $ 9.88 $ 9.53 $ 9.27 $ 8.42
======= ====== ====== ====== ======
Market value, end of year* $ 9.75 $ 9.38 $ 8.88 $ 8.14 $ 7.50
======= ====== ====== ====== ======
TOTAL INVESTMENT RETURN+ 8.65% 5.86% 14.21% 15.25% (14.88%)
======= ======= ====== ====== ======

RATIOS TO AVERAGE NET ASSETS:
Operating expenses@ 0.70% 0.68% 0.65% 0.74% 0.71%
Net investment income 7.33% 5.86% 6.86% 7.12% 8.17%

SUPPLEMENTAL DATA:
Average net assets (in thousands) $215,606 $208,747 $201,998 $192,717 $189,828
Portfolio turnover 22% 76% 106% 165% 109%
Net assets, end of year (in thousands) $217,049 $213,469 $206,004 $200,313 $181,919
Reverse repurchase agreements outstanding,
end of year (in thousands) $ 38,345 $ 87,604 $ 94,960 $ 92,861 $ 79,443
Asset coverage++ $ 6,660 $ 3,437 $ 3,169 $ 3,157 $ 3,290

</TABLE>

- -----------------
* Net asset value and market value are published in The Wall Street Journal
each Monday.
@ The ratios of operating expenses, including interest expense, to average
net assets were 2.26%, 3.65%, 3.42%, 4.40% and 2.46% for the years
indicated above, respectively. The ratios of operating expenses, including
interest expense and excise tax, to average net assets were 2.34%, 3.77%,
3.47%, 4.47% and 2.49%, for the years indicated above, respectively.
+ 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 agreement 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 Financial Statements.

<PAGE>

- --------------------------------------------------------------------------------
THE BLACKROCK 1999 TERM TRUST INC.
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------

NOTE 1. ORGANIZATION & The BlackRock 1999 Term Trust Inc. (the "Trust"),
ACCOUNTING a Maryland corporation is a diversified closed-end
POLICIES management investment company. The investment
objective of the Trust 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 about December 31, 1999 while providing high monthly
income. 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.

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 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 unless the Trust's Board of Directors
determine that such price does not reflect its fair value, in which case it will
be valued at its fair value as determined by the Trust's Board of Directors. 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 which mature in 60 days or less are valued at
amortized cost, if their term to maturity from date of purchase is 60 days or
less. Short-term securities with a term to maturity greater than 60 days from
the date of purchase are valued at current market quotations until maturity.

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
proceeds from the sale or cost of the purchase 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 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

<PAGE>

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 any time 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.

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 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 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 secur-ity 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.

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.

<PAGE>

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 substantially all of its taxable income to shareholders. Therefore,
no federal income tax provision is required.

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 are distributed at least
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.

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.

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 $175,000 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.

Note 2. Agreements The Trust has an Investment Advisory Agreement with
BlackRock Financial Management, Inc. (the "Adviser")
a wholly-owned corporate subsidiary of BlackRock Advisors, Inc., which is an
indirect majority-owned subsidiary of PNC Bank, N.A., and an Administration
Agreement with Prudential Investments Fund Management LLC ("PIFM"), an indirect,
wholly-owned subsidiary of The Prudential Insurance Co. of America.

The investment advisory fee paid to the Adviser is computed weekly and
payable monthly at an annual rate of 0.40% 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.

Pursuant to the agreements, the Adviser provides continuous supervision of
the investment portfolio and pays the compensation of officers of the Trust who
are affiliated persons of the Adviser. 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 invesments and dollar rolls, for
the year ended December 31, 1998 aggregated
$56,965,311 and $97,347,123, respectively.

The Trust may invest up to 40% 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, 1998, the Trust
did not hold any illiquid securities.

The Trust may from time to time purchase in the secondary market certain
mortgage pass-through securities packaged or master serviced by 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. It is possible under certain circumstances PNC Mortgage Securities
Corp. or its affiliates, including Midland Loan Services 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.

The federal income tax basis of the Trust's investments at December 31,
1998 was substantially the same as the basis for financial reporting and,
accordingly, net unrealized appreciation for federal income tax purposes was
$883,400 (gross unrealized appreciation -- $2,917,212; gross unrealized
depreciation -- $2,033,812).

For federal income tax purposes, the Trust had a capital loss carryforward at
December 31, 1998 of approximately $7,930,200 which will expire at the
termination of the Trust. Accordingly, no capital gains distribution is expected
to be paid to shareholders until net gains have been realized in excess of such
amounts.

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

13
<PAGE>

the direction of the Trust's Board of Directors. Interest on the value of
reverse repurchase agreements issued and outstanding will be 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 transaction, including accrued interest.

The average daily balance of reverse repurchase agreements outstanding during
the year ended December 31, 1998 was approximately $55,508,769 at a weighted
average interest rate of approximately 5.68%. The maximum amount of reverse
repurchase agreements outstanding at any month-end during the year ended
December 31, 1998 was $91,067,287 as of January 31, 1998 which was 29.8% 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, 1998.

NOTE 5. CAPITAL There are 200 million shares of $.01 par value
common stock authorized. Of the 21,610,583 shares
outstanding at December 31, 1998, the Adviser owned 10,583 shares.

<PAGE>

- --------------------------------------------------------------------------------
THE BLACKROCK 1999 TERM TRUST INC.
REPORT OF INDEPENDENT AUDITORS
-------------------------------------------------------------------------------

The Shareholders and
Board of Directors of
The BlackRock 1999 Term Trust Inc.:

We have audited the accompanying statement of assets and liabilities of The
BlackRock 1999 Term Trust Inc., including the portfolio of investments, as of
December 31, 1998, and the related statements of operations and of cash flows
for the year then ended, the statements of changes in net assets for each of the
two years in the period then ended, and the financial highlights for each of the
five years in the period then ended. These financial statements and financial
highlights are the responsibility of the Trust's management. Our responsibility
is to express an opinion on these financial statements and 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 financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned at December
31, 1998, 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 financial statement
presentation. We believe that our audits provide a reasonable basis for our
opinion.

In our opinion, such financial statements and financial highlights present
fairly, in all material respects, the financial position of The BlackRock 1999
Term Trust Inc. as of December 31, 1998, the results of its operations, its cash
flows, the changes in its net assets and the financial highlights for the
respective stated years in conformity with generally accepted accounting
principles.

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

Deloitte & Touche LLP

New York, New York
February 12, 1999

<PAGE>

- --------------------------------------------------------------------------------
THE BLACKROCK 1999 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 its fiscal year ended December 31, 1998.
During the fiscal year ended December 31, 1998, the Trust paid dividends
of $0.43 per share from net investment income. For federal income tax purposes,
the aggregate of any dividends and short-term capital gains distributions you
received are reportable in your 1998 federal income tax returns as ordinary
income. Further, we wish to advise you that your income dividends do not qualify
for the dividends received deduction.
For the purpose of preparing your 1998 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 1999.

- --------------------------------------------------------------------------------
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 in connection with the Plan.
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 fees 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.

<PAGE>

- --------------------------------------------------------------------------------
THE BLACKROCK 1999 TERM TRUST INC.
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.

YEAR 2000 READINESS DISCLOSURE. The Trust is currently in the process of
evaluating its information technology infrastructure for Year 2000 compliance.
Substantially all of the Trust's information systems are supplied by the
Adviser. The Adviser has advised the Trust that it is currently evaluating
whether such systems are year 2000 compliant and that it expects to incur costs
of up to approximately five hundred thousand dollars to complete such evaluation
and to make any modifications to its systems as may be necessary to achieve Year
2000 compliance. The Adviser has advised the Trust that it has fully tested its
systems for Year 2000 compliance. The Trust may be required to bear a portion of
such cost incurred by the Adviser in this regard. The Adviser has advised the
Trust that it does not anticipate any material disruption in the operations of
the Trust as a result of any failure by the Adviser to achieve Year 2000
compliance. There can be no assurance that the costs will not exceed the amount
referred to above or that the Trust will not experience a disruption in
operations.

The Adviser has advised the Trust that it is in the process of evaluating
the Year 2000 compliance of various suppliers of the Adviser and the Trust. The
Adviser has advised the Trust that it intends to communicate with such suppliers
to determine their Year 2000 compliance status and the extent to which the
Adviser or the Trust could be affected by any supplier's Year 2000 compliance
issues. To date, however, the Adviser has not received responses from all such
suppliers with respect to their Year 2000 compliance, and there can be no
assurance that the systems of such suppliers, who are beyond the Trust's
control, will be Year 2000 compliant. In the event that any of the Trust's
significant suppliers do not successfully and timely achieve Year 2000
compliance, the Trust's business or operations could be adversely affected. The
Adviser has advised the Trust that it is in the process of preparing a
contingency plan for Year 2000 compliance by its suppliers. There can be no
assurance that such contingency plan will be successful in preventing a
disruption of the Trust's operations.

The Trust is designating this disclosure as its Year 2000 readiness
disclosure for all purposes under the Year 2000 Information and Readiness
Disclosure Act and the foregoing information shall constitute a Year 2000
statement for purposes of that Act.

17
<PAGE>

- --------------------------------------------------------------------------------
THE BLACKROCK 1999 TERM TRUST INC.
INVESTMENT SUMMARY
- --------------------------------------------------------------------------------

THE TRUST'S INVESTMENT OBJECTIVE
The BlackRock 1999 TermTrust Inc.'s 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 about
December 31, 1999 while providing high monthly income.

WHO MANAGES THE TRUST?
BlackRock Financial Management, Inc. ("BlackRock") is an SEC-registered
investment adviser. BlackRock and its affiliates currently manage over $132
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-one closed-end funds that are traded on either the New York or American
stock exchanges, and a $24 billion family of open-end equity and bond funds.
Current institutional clients number 425, 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 ADVISER'S INVESTMENT STRATEGY?
The Adviser 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 Trust 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 1999. At the Trust's
termination, BlackRock 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 addition to seeking the return of the initial offering price, the Adviser
also seeks to provide high monthly income to investors. The portfolio managers
will attempt to achieve this objective by investing in securities that provide
competitive income. In addition, leverage will be used (in an amount up to
331/3% of total assets) to enhance the income of the portfolio. In order to
maintain competitive yields as the Trust approaches maturity and depending on
market conditions, the Adviser 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. However, the Adviser will attempt to maintain a
yield which is competitive with a comparable maturity Treasury at the same point
on the yield curve (i.e. if the Trust has three years left until its maturity,
the Adviser will attempt to maintain a yield at a spread over a 3-year
Treasury). 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

<PAGE>

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 and Trust Co. 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.

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. In general, the portfolio
is typically leveraged at approximately 331/3% of total assets.

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. BlackRock'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 BlackRock 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 effect 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 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 cashflow 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 less than 10% of its total 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>

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THE BLACKROCK 1999 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
mortgage loans on commercial properties.

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

DIVIDEND: This is 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 distributions
of dividends and 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 Association, 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
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 (Government
National Mortgage Association), FNMA (Federal
National Mortgage Association) and FHLMC (Federal
Home Loan Mortgage Corporation).

<PAGE>

Inverse-Floating Rate Mortgages: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
(I/O): Mortgage securities including CMBS that
receive only the interest cash flows from an
underlying pool of mortgage loans or underlying
pass-through securities. Also known as a "Strip."

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 Fannie Mae,
Freddie Mac or Ginnie Mae.

Multiple-Class Pass-Throughs: Collateralized Mortgage Obligations.

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 New York Times or The
Wall Street Journal each Monday.

Principal-Only Securities Mortgage securities that receive only the
(P/O): principal cash flows from an underlying pool of
mortgage loans or underlying pass-through
securities. Also known as a "Strip."

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, Fannie
Mae 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 In a reverse repurchase agreement, the Trust sells
Agreements: 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 Arrangements in which a pool of assets is
Securities: 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 FINANCIAL MANAGEMENT, INC.
SUMMARY OF CLOSED-END FUNDS
- --------------------------------------------------------------------------------

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

TERM TRUSTS
The BlackRock 1999 Term Trust Inc. BNN 12/99
The BlackRock Target Term Trust Inc. BTT 12/00
The BlackRock 2001 Term Trust Inc. BLK 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

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

If you would like further information please call
BlackRock at (800) 227-7BFM (7236)
or consult with your financial advisor.

<PAGE>

- -------------------------------------------------------------------------------
BLACKROCK FINANCIAL MANAGEMENT, INC.
AN OVERVIEW
- --------------------------------------------------------------------------------

BlackRock Financial Management, Inc. ("BlackRock") is an SEC-registered
investment adviser. BlackRock and its affiliates currently manage over $132
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-one closed-end funds that are
traded on either the New York or American stock exchanges, and a $24 billion
family of open-end equity and bond funds. Current institutional clients number
425, 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
please do not hesitate to call BlackRock at (800) 227-7BFM

<PAGE>

BLACKROCK

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

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

INVESTMENT ADVISER
BlackRock Financial Management, Inc.
345 Park Avenue
New York, NY 10154
(800) 227-7BFM

ADMINISTRATOR
Prudential Investments Fund Management LLC
Gateway Center Three
100 Mulberry Street
Newark, NJ 01702-4077

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
919 Third Avenue
New York, NY 10022

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

THE BLACKROCK 1999 TERM TRUST INC.
c/o Prudential Investments Fund Management LLC
Gateway Center Three
100 Mulberry Street
Newark, NJ 07102-4077
(800) 227-7BFM

[logo] Printed on recycled paper 09247T-10-0

The BlackRock
1999 Term
Trust Inc.
- ------------------
Annual Report
December 31, 1998

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