New York, January 25, 2011 - BlackRock, Inc. (NYSE:BLK) today reported fourth quarter 2010 net income of $657 million, up $401 million from a year ago and up $106 million compared to third quarter 2010. Operating income was $940 million and non-operating income, net of non-controlling interests, was $26 million. The full year 2010 operating margin was 34.8%, which included the effect of $90 million of integration costs associated with the December 1, 2009 acquisition of Barclays Global Investors ("BGI"), and the fourth quarter 2010 margin was 37.7%.

Fourth quarter net income, as adjusted2, was $3.42 per diluted common share, or $670 million, up 43% compared to fourth quarter 2009 diluted EPS, as adjusted2, of $2.39 and up $0.67 compared to third quarter 2010. Fourth quarter 2010 included operating income, as adjusted2, of $3.35 per diluted share and net nonoperating income, as adjusted2, of $0.07 per diluted share. Operating income, as adjusted2, of $962 million, included approximately $2.5 billion of total revenue, including $326 million of performance fees. Operating income, as adjusted2, improved $401 million, or 71%, compared to fourth quarter 2009 and improved $225 million, or 31%, compared to third quarter 2010. Compared to a year ago, operating results reflect the benefits of the BGI acquisition, improved markets and positive performance. The operating margin, as adjusted2, for full year 2010 was 39.3%, an expansion of 1.1 percentage points as compared to 38.2% in 2009, and the fourth quarter 2010 operating margin, as adjusted2, was 40.7%. Fourth quarter results reflect strong performance fees, growth in base fees due to positive equity markets, offset partially by higher incentive compensation and general and administration expenses. Non-operating income, net of non-controlling interests, as adjusted2, in the fourth quarter 2010 included gains of approximately $45 million as a result of higher valuations on co-investments across all assets classes.

Assets under management ("AUM") totaled $3.561 trillion at December 31, 2010, up $114.9 billion or 3% during the quarter. The increase in AUM was driven by market and investment performance of $132.1 billion and net new business of $23.9 billion, which were partially offset by merger-related outflows of $38.7 billion. A single index client accounted for $23.6 billion of the merger-related outflows, representing less than $1.5 million n annualized revenues. For the year, AUM rose $214.7 billion or 6%, on the strength of $284.1 billion from market and investment performance and $57.8 billion of net new business, while merger-related outflows totaled $121.0 billion or less than 7% of acquired AUM.

Net new business during the quarter included $28.2 billion in long-term products (equity, fixed income, multiasset class and alternative investments) and $0.8 billion in cash management, partially offset by $5.2 billion of net distributions from advisory accounts. BlackRock Solutions® added 20 assignments during the quarter, bringing the total to 62 new mandates for the year. Investment performance was strong across much of the platform, supporting new business efforts in all regions and across all client channels. As of January 20, 2011, our new business pipeline totaled $72.7 billion, net of $13.6 billion of pending merger-related outflows.

"We closed 2010 with strong earnings for the quarter and the year, attractive investment performance and growing new business momentum," remarked Laurence D. Fink, Chairman and CEO of BlackRock. "Away from merger-related outflows, new business was robust, with a combined $96.6 billion in fourth quarter net flows and net wins in the pipeline. These flows spanned all regions and all client channels and reflect the diversity of our platform and the breadth of our global new business effort.

"December 1, 2010 marked the one-year anniversary of our merger with BGI. We accomplished a great deal during our first year, evolving our culture, organizational structure and governance model. We worked with clients to introduce our broader global capabilities and to address manager concentration and other issues. We believe merger-related outflows are largely behind us, the organizational integration is completed, and the technology implementation remains on track. Of course, the work required to foster a dynamic culture never ends.

"A key objective of the integration process was to protect and enhance the investment platform. I am especially pleased that this effort was successful. We delivered strong investment results across much of our product line-up. In addition, fourth quarter performance fees are a direct consequence of strong alpha generation across a wide range of active (quantitative and fundamental) offerings.

"BlackRock Solutions continues to be a key differentiator, and business growth remains robust. We added 20 new Aladdin, risk management and financial markets advisory assignments during the quarter. Client

interest continues unabated, including the recently announced engagement by the Central Bank of Ireland. We have won other new assignments this year as well, and the pipeline of opportunities in development is exceptionally strong.

"During the quarter, we completed a secondary offering, placing $9.6 billion of common stock sold by Bank of America and PNC with more than 150 new shareholders and increasing our float to 52%. On the roadshow, we highlighted key trends and corresponding growth opportunities in both our scale and capacity-constrained businesses. Many of these trends were reflected in last year's flows. For example, we highlighted retirement trends as driving opportunities in retail, defined contribution, and multi-asset class solutions. These trends were borne out in our net new business in 2010, with these segments achieving organic growth in long-term products of $26.9 billion, $18.4 billion and $26.3 billion, respectively.

"Finally, iShares closed the year on a strong note, with net inflows of $13.4 billion during the fourth quarter and $42.9 billion for the year. Net new business in 2010 reflects our strong position globally, with a 33% organic growth rate in Asia Pacific, 16% in EMEA and 7% in the Americas. As in all investment markets, performance and service are the most important measures for distinguishing among managers. We look forward to building on our global industry-leading position to provide the best value to investors.

"The past year was both challenging and rewarding, and we begin 2011 collectively focused on more fully leveraging our platform to serve our clients. Doing so will require exceptional intellectual capital, and we are committed to building the best talent in the industry. Yesterday, we announced that Nancy Everett will be joining BlackRock to extend our fiduciary management services into the U.S.** In the past year alone, nearly 1,000 people have joined our team, including experienced professionals like Nancy, who are enthusiastic about the opportunity to build and grow with BlackRock.

"In closing, I want to thank all of BlackRock's employees around the globe for their hard work and dedication. I am very proud of how much we accomplished over the past year - how quickly the teams have come together. The diversification of our business combined with the alignment of our organization is paying dividends and momentum has never been stronger. I am confident that together we can and will make a difference for our clients."

Fourth Quarter Business Highlights
Unless stated otherwise, net new business figures below are before giving effect to merger-related outflows, which totaled $38.7 billion during the quarter, or 2% of acquired AUM, bringing the total for the year to $121.0 billion or less than 7% of acquired AUM. As previously reported, low fee index AUM accounted for a substantial portion of merger-related outflows, including two-thirds of those effected during the fourth quarter. An additional $13.6 billion of merger-related outflows have been identified and netted out of the new business pipeline.

Investors continued to increase risk exposure, driving net new business of $28.2 billion in long-term products. Net inflows were strongest in equity and multi-asset class products, with $23.7 billion and $6.1 billion, respectively. Net new business of $9.4 billion in fixed income was overshadowed by the transfer to cash management of an $8.8 billion stable value fund on which we have been waiving fees for more than a year. Alternative investments suffered modest outflows of $2.1 billion, primarily driven by the loss of a $2.6 billion real estate assignment.

Client fundings spanned a wide range of index and active products. Index offerings, including iShares and institutional accounts, attracted $13.4 billion and $12.0 billion of net inflows, respectively. Net new business in actively managed products totaled $11.7 billion, before giving effect to the transfer of the stable value fund referenced above. These net flows favorably impacted our revenue mix.

Renewed risk appetite was a common theme across our global client base, leading to net inflows in longterm products in all regions and all channels. Flows in EMEA and Asia-Pacific were predominantly in fixed income products, while investors in the Americas favored equity and multi-asset class offerings. In total, new business in long-term products was $12.9 billion, $3.6 billion and $11.8 billion from clients in EMEA, Asia- Pacific and the Americas, respectively. Net new business was strongest in iShares, with $13.4 billion,followed by retail with $9.2 billion and institutional with $5.6 billion. Results in the Americas institutional channel were muted by the transfer of the stable value AUM to cash management.

Investment performance was strong across much of the product platform. In active products, 74%, 53% and 53% of taxable fixed income AUM, 61%, 60% and 67% of equity AUM and 33%, 82% and 88% of multi-asset AUM achieved returns in excess of their benchmarks or peer medians for the one-, three- and five-year periods ended December 31, 2010. We delivered strong performance on many of our alternative investments, including our fund of hedge funds, a variety of single strategy and macro hedge funds, and a number of our real estate products. In addition, the majority of our index AUM was within tracking error tolerances, which is critical for supporting new business flows in index and iShares offerings.

Cash management flows remained subdued, although average AUM increased approximately 4%. Reported net inflows include the stable value fund referenced above, which is being invested in cash temporarily. Excluding the transfer and related outflows from the fund, cash management had net withdrawals of $6.2 billion, reflecting client re-risking and year-end cyclicality. We expect rates to remain low and flows to remain muted at best.

BlackRock Solutions had another robust quarter, adding 20 net new assignments. New business included one Aladdin client, four risk management mandates, and 15 short-term advisory engagements. We also completed 20 short-term advisory assignments during the quarter, and ended the year with eight Aladdin and risk implementations in process. Advisory AUM ended the quarter at $150.7 billion after giving effect to $5.2 billion of net client distributions. Interest in risk management solutions and advisory services remains exceptionally strong.

Our new business pipeline of $72.7 billion (net of pending merger-related outflows) reflects strong client response to BlackRock's unique capabilities. As of January 20, 2011, net wins funded and to be funded spanned all asset classes other than cash. The $61.2 billion of net wins in long-term products include a wide range of index, active fundamental and active quantitative products. They also reflect the broad strength of our new business effort, with net wins in all regions and all channels. An additional $12.7 billion in advisory AUM reflects the continued strength of BlackRock Solutions.

Fourth Quarter Financial Highlights
Fourth quarter 2010 includes the results of the BGI transaction, which closed on December 1, 2009. Given the magnitude of the acquired business, certain line item variances as compared to fourth quarter 2009 were driven by the inclusion of BGI results for the full fourth quarter in 2010.

Comparison to the Fourth Quarter of 2009

Operating income:
Fourth quarter 2010 operating income increased 142% to $940 million from $389 million in fourth quarter 2009. Fourth quarter 2010 operating income reflects a full quarter of revenues and expenses related to the operations of BGI as compared to one month in fourth quarter 2009. BGI transaction and integration costs included in fourth quarter 2009 were $152 million as compared to zero in fourth quarter 2010. The BGI transaction/integration expenses are not part of the on-going business and are comprised of costs associated with combining the firms.

Fourth quarter 2010 revenues of $2,493 million increased $949 million, or 61%, compared to $1,544 million in fourth quarter 2009, due to the following:

• Investment advisory, administration fees and securities lending revenue of $1,951 million in fourth quarter 2010 increased $697 million, or 56%, compared to $1,254 million in fourth quarter 2009, primarily related to the BGI acquisition as well as growth in long-term AUM, which included net new business and market appreciation on long-term AUM during the prior twelve months, partially offset by a decline in fees from cash management products due to lower average AUM.
• Performance fees were $326 million in fourth quarter 2010, compared to $125 million in fourth quarter 2009. The $201 million increase primarily relates to an increase in performance fees earned upon exceeding absolute investment or relative investment return thresholds on alternative multi-strategy hedge funds, regional/country equity strategies, multi-asset class and fixed income products.
• BlackRock Solutions and advisory revenue was $132 million in fourth quarter 2010 compared to $108 million in fourth quarter 2009. The increase was primarily due to an increase in advisory assignments and additional Aladdin mandates.
• Other revenue was $57 million in fourth quarter 2010, an increase of $27 million, compared to $30 million in fourth quarter 2009. The increase was primarily due to a $15 million increase in fees earned for transition management services and a $6 million increase in marketing fees for the distribution of Barclays iPath® products (exchange traded notes issued by Barclays Bank PLC).

Fourth quarter 2010 total operating expenses were $1,553 million as compared to $1,155 million in fourth quarter 2009. Fourth quarter 2010 total operating expenses increased by $550 million compared to $1,003 million in fourth quarter 2009, excluding BGI transaction/integration costs of $152 million in fourth quarter 2009. The $550 million increase primarily was due to the following:

• Employee compensation and benefits increased $284 million, excluding BGI integration costs of $60 million in fourth quarter 2009. The increase reflects an increase in the number of employees due to BGI and a $166 million increase in incentive compensation. The increase in incentive compensation is primarily associated with the increase in operating income and a $26 million increase in stock-based compensation expense related to the effect of additional grants to a larger number of employees at the end of January 2010.
• Direct fund expenses increased $82 million primarily related to the full quarter effect of the addition of BGI funds subject to these arrangements, under which BlackRock pays certain fund expenses.
• General and administration expenses increased $184 million, excluding BGI transaction/integration costs of $92 million in fourth quarter 2009. The $184 million increase was primarily related to the general and administrative expenses associated with the acquired BGI business, an increase in global and exchange traded fund marketing expenses, a $20 million expense related to a contribution to a donor advised charitable fund and a $20 million regulatory fee, partially offset by an $11 million decrease in occupancy related to write-offs of certain leasehold improvements in fourth quarter 2009.

Non-operating income (expense):
Fourth quarter 2010 non-operating income, net of non-controlling interests, was $26 million compared to $17 million in fourth quarter 2009. The $26 million non-operating income, net of non-controlling interests, was comprised of $45 million of net gains primarily on co-investments and $6 million of positive marks related to hedges of deferred compensation, partially offset by $25 million of net interest expense. The $45 million net gain on investments included net gains in distressed credit/mortgage funds of $16 million, private equity investments of $13 million, hedge funds/funds of hedge funds of $7 million, real estate equity/debt products of $5 million and other investments of $4 million. Net interest expense of $25 million increased $6 million primarily due to an increase in interest expense related to the full quarter effect of the December 2009 issuances of $2.5 billion of long-term notes, partially offset by higher dividend income.

Income tax expense:
Income tax expense was $309 million and $150 million for the fourth quarter 2010 and 2009, respectively. The GAAP effective income tax rate for the fourth quarter 2010 was 32.0%, which included the benefit of U.S. tax legislation that was enacted during the period to extend certain international tax provisions, as compared to 36.9% for the fourth quarter 2009, which included the effect of certain BGI transaction costs which were not deductible.

Comparison to the Third Quarter of 2010

Operating income:
Fourth quarter 2010 operating income increased 33% to $940 million from $707 million in third quarter 2010. Third quarter 2010 operating income included $17 million of closed-end fund launch costs/commissions and $6 million of BGI integration costs.

Fourth quarter 2010 revenues of $2,493 million increased $401 million, or 19%, compared to $2,092 million in third quarter 2010, primarily due to the following:

• Investment advisory, administration fees and securities lending revenue of $1,951 million in fourth quarter 2010 increased $157 million compared to $1,794 million in third quarter 2010. The growth in revenue is primarily associated with an increase in long-term AUM, partially offset by a decline in fees from cash management products.
• Performance fees were $326 million in fourth quarter 2010, an increase of $212 million, or 186%, compared to third quarter 2010. The increase relates primarily to higher performance fees from multistrategy hedge funds and an increase in relative performance on separate accounts across regional/country equity strategies, multi-asset class and fixed income products that have performance measurement periods that ended on December 31, partially offset by a decline in performance fees earned from equity and fixed income hedge funds.
• BlackRock Solutions and advisory revenue was $132 million in fourth quarter 2010 compared to $101 million in third quarter 2010. The increase was due to an increase in advisory assignments and an increase in Aladdin service fees.

Fourth quarter 2010 total operating expenses of $1,553 million increased 12%, or $168 million, compared to $1,385 million in third quarter 2010. Excluding $6 million of BGI integration costs for third quarter 2010, fourth quarter 2010 total operating expenses increased $174 million. The $174 million increase compared to third quarter 2010 primarily was due to the following:

• Employee compensation and benefits increased $70 million, excluding BGI integration costs in the third quarter 2010. The increase reflects a $62 million increase in incentive compensation primarily due to higher operating income and an $8 million increase in base compensation due to new hires in the fourth quarter and $8 million in payroll taxes due to the increase in incentive compensation, partially offset by an $8 million decrease in other compensation.
• Direct fund expenses increased $10 million primarily related to an increase in average AUM for the funds subject to these arrangements, under which BlackRock pays certain fund expenses.