New York, October 20, 2010 - BlackRock, Inc. (NYSE:BLK) today reported third quarter 2010 net income of $551 million, up $234 million from a year ago and up $119 million compared to second quarter 2010.

Operating income was $707 million and non-operating income, net of non-controlling interests, was $45 million. The operating margin was 33.8%, which included the effect of $17 million of costs related to the successful launch of the $1.2 billion Build America Bond Trust and $6 million of integration costs associated with the December 1, 2009 acquisition of Barclays Global Investors ("BGI").

Third quarter net income, as adjusted2, was $2.75 per diluted common share, or $537 million, up 31% compared to third quarter 2009 diluted EPS, as adjusted2, of $2.10 and up $0.38 compared to second quarter 2010. Third quarter 2010 included operating income, as adjusted2, of $2.61 per diluted share and net non-operating income, as adjusted2, of $0.14 per diluted share. Third quarter net income includes a tax rate benefit ($0.11 per diluted share related to first half of 2010) reflecting favorable tax rulings and resolution of certain tax positions. Operating income, as adjusted2, of $737 million, which included $17 million of closedend fund launch costs, improved $337 million, or 84%, compared to third quarter 2009 and declined $4 million, or 1%, compared to second quarter 2010. Compared to a year ago, operating results reflect the benefits of the BGI acquisition and improved markets. The operating margin, as adjusted2, for year-to-date September 2010 was 38.7%, an expansion as compared to 37.4% in 2009. Third quarter income and year-to-date margin reflect positive business momentum, the benefits of our diversified business model and continued investment in the business. Non-operating income, net of non-controlling interests, as adjusted, in the third quarter 2010 included gains of approximately $66 million as a result of higher valuations on coinvestments including private equity, distressed opportunistic funds as well as real estate equity products.

Assets under management ("AUM") totaled $3.446 trillion at September 30, 2010, up $295.5 billion or 9% during the quarter and $2.011 trillion or 140% year-over-year, including $1.756 trillion of acquired AUM net of outflows due to manager concentration considerations and active quantitative performance ("merger-related outflows"). As discussed under "Third Quarter Business Highlights," net new business during the quarter totaled $50.1 billion, including $52.6 billion in long-term products and $1.8 billion in cash management, partially offset by $4.3 billion of net distributions in advisory AUM. BlackRock Solutions® added 4 net new assignments during the quarter, bringing the total for the year to 34 net new mandates. Investment performance remained competitive across much of the platform, supporting new business efforts in all regions. At October 15, 2010, the pipeline of net wins funded or to be funded totaled $46.1 billion, including $40.7 billion in long-term products and $5.4 billion in cash management.

During the third quarter 2010 BlackRock repurchased approximately 895,000 shares of the 5,100,000 shares that were approved in July to be repurchased to neutralize the dilutive effects of restricted stock units and options, with management discretion on the timing of the repurchases. BlackRock's operating results have generated strong cash flow and have allowed us to fully repay our commercial paper balance during the third quarter.

"BlackRock's robust third quarter results reflected the breadth of our business globally, strong performance in both index and actively managed products, and increasing demand for BlackRock's unique ability to deliver multi-asset class and risk management solutions to our clients," commented Laurence D. Fink, Chairman and CEO of BlackRock. "Expansion of our operating margin, particularly given the level of investment we are making in the business, reflects the leveragability of our platform and our continued focus on managing expenses.

"Our new business results were also a strong testament to the strength and diversity of our franchise. Specifically, new business spanned a wide range of products, including fixed income, equities, multi-asset class, cash management and BlackRock Solutions. In addition, we had net inflows in long-term products in all regions and in all client segments. Most importantly, strong investment performance continued to support new business momentum, as evidenced by our $46.1 billion pipeline.

"Our merger integration continues to progress well. The new internal governance model announced in July has been well received, and our employees are energized and focused on delivering the best of BlackRock to our clients. We have begun to realize the benefits of consolidating our alternative investment platform and globalizing the iShares® business. In addition, the integration of our operating platform, which is on schedule for completion by year-end 2011, will enhance the competitive advantage we gain from Aladdin®.

"I am very proud of the work we are doing to help clients navigate this very challenging investment environment. Persistent low rates are a tax on savers and pension plans, and are a continuing source of strain for all of our clients. Increasingly, investors are asking for tailored, often complex solutions that leverage a wide range of capabilities to deliver desired outcomes. These needs reinforce the significance of BlackRock's business model: no one else has as deep expertise across asset classes, global markets and risk management, and the ability to deliver those capabilities to clients locally. I remain firmly convinced that our approach will be an enduring source of differentiation for clients and shareholders alike."

Third Quarter Business HighlightsAll net new business figures below are before giving effect to merger-related outflows, which totaled $34.4 billion during the quarter, or less than 2% of acquired AUM, bringing the total since closing of the BGI Transaction to $89.1 billion or less than 5% of acquired AUM. As previously reported, low fee index AUM accounted for a substantial portion of merger-related outflows, including more than half of those effected during the third quarter.

AUM grew $295.5 billion to $3.446 trillion. Strong investment performance, favorable foreign exchange movements and robust net new business drove a 9% increase in AUM during the quarter. Net new busines totaled $50.1 billion, including net inflows of $52.6 billion in long-term mandates and $1.8 billion in cash management, which were partially offset by net distributions of $4.3 billion in advisory AUM.

• Net new business in long-term products was robust across all client regions, including net inflows of $24.1 billion, $24.4 billion and $4.1 billion from clients in the Americas, EMEA and Asia Pacific, respectively.

• Similarly, net inflows in long-term products was positive in all client channels, including $36.9 billion from institutional clients, $13.6 billion in iShares, and $2.0 billion from retail and high net worth investors.

Fixed income AUM closed at $1.168 trillion, up $87.5 billion. Net new business of $26.7 billion reflected strong net inflows in local currency and global mandates and the successful offering of BlackRock's Build America Bond Trust closed-end fund. Flows were positive in all regions and all channels, including $15.7 billion from institutional clients, $6.3 billion in iShares and $4.6 billion from retail and high net worth investors.

Merger-related outflows totaled $3.1 billion or 0.6% of acquired fixed income AUM. Our portfolio management team continued to achieve strong performance, with 81%, 55% and 57% of active taxable fixed income AUM above benchmarks or peer medians for the one-, three- and five-year periods ended September 30, 2010. For the same time periods, index returns were within their tracking error tolerances.

Equity AUM climbed $180.2 billion to $1.563 trillion. Net new business of $21.6 billion reflected $25.9 billion of net inflows in index products, including $6.4 billion in iShares, and $4.3 billion of outflows in actively managed portfolios, as retail investors worldwide retrenched. Flows were positive in all regions, with $17.3 billion, $2.2 billion and $2.1 billion from clients in the Americas, EMEA and Asia Pacific, respectively.

Merger-related outflows totaled $30.5 billion or 2.6% of acquired equity AUM. Fundamental active equities remained competitive with 64%, 65% and 76% of AUM outperforming their benchmarks or peer medians for the one-, three- and five-year periods ended September 30, 2010. For the same time periods, scientific active equity performance improved, with 48%, 28% and 32% of AUM above benchmarks or peer medians, and index equities produced results within their tracking error tolerances.

Multi-asset class AUM expanded to $170.6 billion, up $22.4 billion. Strong investor demand for bespoke solutions resulted in net new business of $5.3 billion, led by $2.2 billion in balanced and asset allocation products, $1.7 billion in our LifePath® target date offerings, and $0.8 billion in fiduciary outsourcing mandates. Flows were nearly evenly split between clients in the Americas and EMEA. There were no merger-related outflows during the quarter. Competitive investment performance improved relative rankings, with 62%, 81% and 87% of active multi-asset class AUM exceeding benchmarks or peer medians for the one-, three- and five-year periods ended September 30, 2010.

Alternative investment AUM grew $4.2 billion to $105.7 billion. Alternative products overall suffered $1.0 billion of net outflows during the quarter, with net inflows in currency and commodity products insufficient to overcome net outflows in real estate, hedge funds and fund of funds. Merger-related outflows totaled $0.3 billion or 0.5% of acquired alternative investment AUM. Performance remained competitive in a range of products, with particular strength in fixed income hedge funds and our fund of hedge funds.

Cash management AUM increased to $283.7 billion. Cash management AUM increased for only the third time in the last eight quarters. Net new business totaled $1.8 billion, with net inflows of $10.4 billion from U.S. institutional clients largely offset by net outflows of $7.6 billion from retail and high net worth investors, and the effect of the reclassification of a $0.9 billion exchange-traded fund as fixed income. Merger-related outflows totaled $0.6 billion or 1% of acquired cash management AUM. Yields remained at or near historic lows as economic weakness, accommodative monetary policy and regulatory uncertainty continued to prevail.

BlackRock Solutions added 4 net new assignments. New business included one investment accounting mandate and nine short-term advisory engagements, partially offset by the loss of six risk management and other assignments. Two advisory assignments were completed during the quarter, and dispositions from long-term liquidations continued as expected, contributing to $4.3 billion of net distributions in advisory AUM.

At the end of the quarter, BlackRock Solutions had five Aladdin and two risk management implementations in process for third party clients.

Our new business pipeline was $46.1 billion as of October 15, 2010. Net wins funded or to be funded included $40.7 billion in long-term and advisory products and $5.4 billion in cash management. The longterm mandates include $13.1 billion in index products and $27.8 billion in a variety of active strategies.

Merger-related outflows are expected to continue into the first quarter of 2011, including $16.8 billion netted out of the current pipeline. BlackRock Solutions new business pipeline also remained robust, including four contracts in negotiation and ample opportunities at various stages of development.

Third Quarter GAAP Financial Highlights
Third quarter 2010 reflects 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 third quarter 2009 were driven by the inclusion of BGI results in third quarter 2010.

Comparison to the Third Quarter of 2009

Operating income:

Third quarter 2010 operating income increased 98% to $707 million from $357 million earned in third quarter 2009. Third quarter 2010 operating income included $17 million of closed-end fund launch costs/commissions and $6 million of expenses related to the integration of BGI compared to $16 million of BGI transaction costs in third quarter 2009. The BGI transaction/integration expenses are not part of the ongoing business and are comprised of costs associated with combining the firms.

Third quarter 2010 revenues of $2,092 million increased $952 million, or 84%, compared to $1,140 million in third quarter 2009, due to the following:

• Investment advisory, administration fees and securities lending revenue of $1,794 million in third quarter 2010 increased $879 million, or 96%, compared to $915 million in third 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 assets during the prior twelve months, partially offset by a decline in fees from cash management products due to lower average AUM.

• Performance fees were $114 million in third quarter 2010, compared to $49 million in third quarter 2009. The $65 million increase primarily relates to an increase in performance fees from U.K. equity hedge funds, regional/country equity strategies and fixed income hedge funds, including opportunistic funds, partially offset by lower performance fees in multi-asset class separate accounts.

• BlackRock Solutions and advisory revenue was $101 million in third quarter 2010 compared to $122 million in third quarter 2009. The decrease was primarily due to fewer advisory assignments, including portfolio liquidation assignments, which have AUM based fees, partially offset by additional Aladdin mandates.

• Distribution fees were $29 million in third quarter 2010, an increase of $4 million, compared to $25 million in third quarter 2009. The increase was primarily the result of higher AUM in certain share classes of BlackRock Funds.

• Other revenue was $54 million in third quarter 2010, an increase of $25 million, compared to $29 million in third quarter 2009. The increase was primarily due to an $18 million increase in fees earned for transition management services and a $7 million increase in marketing fees for the distribution of Barclays iPath® products (exchange traded notes issued by Barclays Bank PLC).

Third quarter 2010 total operating expenses were $1,385 million as compared to $783 million in third quarter 2009. Excluding BGI transaction/integration costs of $6 million and $16 million in third quarter 2010 and 2009, respectively, operating expenses were $1,379 million, an increase of $612 million compared to $767 million in third quarter 2009. The $612 million increase primarily was due to the following:

• Employee compensation and benefits increased $327 million, excluding BGI integration costs of $3 million in third quarter 2010. The increase reflects an increase in the number of employees related to BGI and a $157 million increase in incentive compensation. The increase in incentive compensation is primarily associated with the increase in operating income after excluding the BGI integration costs, and a $40 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, offset by a $4 million decrease in other deferred compensation. The decrease in other deferred compensation expense is substantially offset in non-operating income related to a decrease in the amount of appreciation on investments held for these deferred compensation plans.

• Distribution and servicing costs paid to Bank of America/Merrill Lynch, The PNC Financial Services Group, Inc. and other third parties decreased $14 million primarily due to a lower level of average cash management AUM and an increase in fee waivers for cash management funds resulting in lower levels of distribution costs.

• Direct fund expenses increased $109 million primarily related to the addition of BGI funds subject to these arrangements, under which BlackRock pays certain fund expenses.

• General and administration expenses increased $183 million, excluding BGI transaction/integration costs of $3 million and $16 million in third quarter 2010 and 2009, respectively. The $183 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, $15 million of closed-end fund launch costs (excluding compensation costs) associated with the Build America Bond Trust fund, which was launched in the third quarter 2010 and a $10 million increase in foreign currency remeasurement costs.

Non-operating income (expense):
Third quarter 2010 non-operating income, net of non-controlling interests, was $45 million compared to $61 million in third quarter 2009. The $45 million non-operating income, net of non-controlling interests, was comprised of $27 million of net interest expense, $66 million of net gains primarily on co-investments and $6 million of positive marks related to hedges of deferred compensation. The $66 million net gain on investments included net gains in distressed credit/mortgage funds of $25 million, private equity investments of $20 million, real estate equity/debt products of $11 million, hedge funds/funds of hedge funds of $4 million and other investments of $6 million. Net interest expense of $27 million increased $16 million primarily due to an increase in interest expense related to the December 2009 issuances of $2.5 billion of long-term notes, offset by higher dividend income.

Income tax expense:
The GAAP effective income tax rate for the third quarter 2010 was 26.7%, as compared to 24.2% for the third quarter 2009. During third quarter 2010, tax legislation enacted in the United Kingdom resulted in a $30 million revaluation of certain deferred tax assets and liabilities. During third quarter 2009, legislation was enacted primarily with respect to New York City corporate income taxes, effective January 1, 2009 which resulted in a $45 million revaluation of deferred income tax assets and liabilities. The resulting decrease in income taxes related to these tax legislation items has been excluded from net income attributable to BlackRock, Inc., as adjusted, as it is non-recurring and to ensure comparability of this information to prior reporting periods. In addition, the GAAP and as adjusted tax rates in third quarter 2010 includes the year to date effect of favorable tax rulings, a portion of which is attributable to the first half of 2010 and the resolution of certain outstanding tax positions.