signed a shareholders agreement to establish the first joint venture asset management company in Bermuda between a US investment adviser and a Bermuda bank.

The new company, BCB Merrill Lynch Asset Management Ltd., will operate out of the 44 Church Street offices of the bank and the new company is expected to be incorporated by the close of business next week.

BCB chief financial officer Mr. Anthony Nagel, said,"The reaction of the business community to this joint venture company has been overwhelming. This is an important step forward for BCB. We are constantly working to provide innovative products and first-class service to all our clients. BCB MLAM is an essential part of that process.

"MLAM have a tremendous amount of expertise and experience in global fixed income management. This partnership enables BCB to significantly enhance its services to meet the asset management needs of the Bermuda exempted company market, in particular insurance companies, which have traditionally looked to London and New York for these services.'' BCB and MLAM, which had in excess of $189 billion in assets under management at September 30, have been working to agree on the operation and mechanics of the company since the execution of a heads of agreement between the two companies in April.

Both MLAM and BCB are each emplacing a senior manager to oversee the new company's operation.

A 20-year veteran in investment management, Mrs. Barbara Faiella, has been named as the new company's senior manager. Mrs. Faiella was senior vice president, treasurer and chief investment officer of Heddington Insurance Ltd.

for seven years.

The new senior portfolio manager for BCB MLAM is American Ms Kathleen Robins who was vice president and global fixed income manager of MLAM in Princeton, New Jersey.

Mrs. Faiella commented:"This strategic alliance between BCB and MLAM comes at an opportune time for Bermuda. The insurance industry in Bermuda wants service and institutional investment management products to meet their specific needs.

"We will be able to build relationships by maintaining a physical presence here while providing global fixed income investment management and research from one of the world's largest investment management companies.'' Ms Robins added:"This is a very exciting venture and I am fortunate to represent MLAM in Bermuda and to bring our global investment management expertise to BCB MLAM.

"By combining MLAM's global asset management network with BCB's in-depth knowledge of the local institutional marketplace, we have created something unique for Bermuda.'' BCB MLAM will be on line to MLAM's worldwide network and soon will be linked directly to BCB GOLD, the cash management system launched by the bank earlier this year.