Infrastructure enhancements

Marsh & McLennan Co Inc
15 September 2006


News Release

Media Contact:    Richard Myers             Investor Contact:
Robin Liebowitz   Edelman                   Mike Bischoff
MMC               212-819-4807              MMC
[phone]                              [phone]


MMC ANNOUNCES SIGNIFICANT ENHANCEMENTS TO FIRM-WIDE INFRASTRUCTURE AND OPERATING
                           COMPANY BUSINESS PROCESSES


  Infrastructure Improvements to IT, Real Estate, and Corporate Functions are
       Expected to Yield Annualized Savings of Approximately $350 Million


NEW YORK, NEW YORK - September 15, 2006 - Marsh & McLennan Companies, Inc. (MMC)
today announced a series of actions to enhance operational efficiencies and
improve profitability. The steps announced today are the product of a
comprehensive review of information technology, real estate, corporate
functions, and operating company business processes. These actions are expected
to yield annualized savings of approximately $350 million by the end of 2008
with charges of approximately $225 million.


'Beginning a year ago, we initiated an effort to rationalize MMC's IT
infrastructure, institutionalize firm-wide best practices, automate systems, and
eliminate redundancies,' said Michael G. Cherkasky, president and chief
executive officer of MMC. 'Actions that have already been taken and will be
taken through the first quarter of 2007 will result in the realization of
approximately half of the total savings.'


The changes announced today will improve the ability of MMC's operating
companies to provide exceptional client service in the most efficient manner.
While these savings include managed attrition and staff reductions of
approximately 750 currently identified positions, the majority of the savings
will be achieved from more efficient processes.


Company-wide changes in IT infrastructure include:

       • establishing global centers for service, infrastructure, and network
         operations;
       • improving procurement management; and
       • consolidating key architecture, such as data centers and servers.

        Savings in real estate are expected to be achieved through a variety of
        global initiatives such as the disposition of excess space, improvements
        in facilities management, and the optimization of standards in space,
        design, and construction. Across MMC, savings are anticipated in
        corporate functions such as finance, HR, and procurement.

    In addition to infrastructure initiatives, MMC expects additional savings
    from targeted profit enhancement initiatives and business process and
    organizational improvements at the operating company level. Marsh and Mercer
    Human Resource Consulting are the MMC operating companies that will be
    affected most significantly by these actions.


The table below summarizes the major initiatives and estimated timing of when
annualized run rate cost savings will be achieved.


                  Total Estimated Annualized Run Rate Savings
                                ($ in millions)

Initiative                          12 months      24 months

IT Infrastructure                          70            130

Corporate Functions                        60            105

Real Estate                                20             45

Operating Company Business Processes       70             70

Total                                      220           350


MMC expects to record approximately 15 percent of the charges this year,
approximately 55 percent in 2007, and 30 percent in 2008.


'Over the past two years, this management team has successfully achieved $800
million in restructuring savings-on time and as promised,' Mr. Cherkasky stated.
'These past successes are evidence that the savings announced today can be
delivered. MMC's senior vice president and chief administrative officer, Michael
Petrullo, and vice president of finance operations, Lamar Chesney, will drive
this process and ensure that our goals are met.'

MMC is a global professional services firm with annual revenues of approximately
$12 billion. It is the parent company of Marsh, the world's leading risk and
insurance services firm; Guy Carpenter, the world's leading risk and reinsurance
specialist; Kroll, the world's leading risk consulting company; Mercer, a major
global provider of human resource and specialty consulting services; and Putnam
Investments, one of the largest investment management companies in the United
States. Approximately 55,000 employees provide analysis, advice, and
transactional capabilities to clients in over 100 countries. Its stock (ticker
symbol: MMC) is listed on the New York, Chicago, Pacific, and London stock
exchanges. MMC's website address is www.mmc.com.

This press release contains 'forward-looking statements,' as defined in the
Private Securities Litigation Reform Act of 1995. These statements, which
express management's current views or assumptions concerning future events or
results, use words like 'anticipate,' 'assume,' 'believe,' 'continue,' 'ensure,'
'estimate,' 'expect,' 'intend,' 'plan,' 'project' and similar terms, and future
or conditional tense verbs like 'could,' 'should,' 'will' and 'would.' For
example, we may use forward-looking statements when addressing topics such as:
future actions by our management or regulators; the outcome of contingencies;
changes in our business strategy; changes in our business practices and methods
of generating revenue; the development and performance of our services and
products; market and industry conditions, including competitive and pricing
trends; changes in the composition or level of MMC's revenues; our cost
structure; the impact of acquisitions and dispositions; and MMC's cash flow and
liquidity.


Forward-looking statements are subject to inherent risks and uncertainties.
Factors that could cause actual results to differ materially from those
expressed or implied in our forward-looking statements include:

   • the economic and reputational impact of: litigation and regulatory
    proceedings brought by federal and state regulators and law enforcement
    authorities concerning our insurance and reinsurance brokerage and
    investment management operations (including the complaints relating to
    market service agreements and other matters filed by, respectively, the New
    York Attorney General's office in October 2004, the Connecticut Attorney
    General's office in January 2005 and the Florida Attorney General's office
    and Department of Financial Services in March 2006, and proceedings relating
    to market-timing matters at Putnam); and class actions, derivative actions
    and individual suits filed by policyholders and shareholders in connection
    with the foregoing;
   • in light of Marsh's elimination of contingent commission arrangements in
    late 2004, our ability to achieve profitable revenue growth in our risk and
    insurance services segment by providing both traditional insurance brokerage
    services and additional risk advisory services;
   • our ability to retain existing clients and attract new business,
    particularly in our risk and insurance services segment, and our ability to
    retain key employees;
   • period-to-period revenue fluctuations in risk and insurance services
    relating to the net effect of new and lost business production and the
    timing of policy inception dates;
   • the impact on risk and insurance services commission revenues of changes
    in the availability of, and the premiums insurance carriers charge for,
    insurance and reinsurance products, including the impact on premiums
    attributable to catastrophic events such as hurricanes;
   • the impact on renewals in our risk and insurance services segment of
    pricing trends in particular insurance markets, fluctuations in the general
    level of economic activity and decisions by insureds with respect to the
    level of risk they will self-insure;
   • the impact on our consulting segment of pricing trends and utilization
    rates;
   • the actual and relative investment performance of Putnam's mutual funds
    and institutional and other advisory accounts, and the extent to which
    Putnam reverses its recent net redemption experience, increases assets under
    management and maintains management and administrative fees at historical
    levels;
   • our ability to implement our restructuring initiatives and otherwise
    reduce or control expenses and achieve operating efficiencies;
   • the impact of competition, including with respect to pricing and the
    emergence of new competitors;
   • the impact of increasing focus by regulators, clients and others on
    potential conflicts of interest, particularly in connection with the
    provision of consulting and investment advisory services;
   • fluctuations in the value of Risk Capital Holdings' investments in
    individual companies and investment funds;
   • our ability to make strategic acquisitions and to integrate, and realize
    expected synergies, savings or strategic benefits from, the businesses we
    acquire;
   • our exposure to potential liabilities arising from errors and omissions
    claims against us;
   • our ability to meet our financing needs by generating cash from
    operations and accessing external financing sources, including the potential
    impact of rating agency actions on our cost of financing or ability to
    borrow;
   • the impact on our operating results of foreign exchange fluctuations;
    and
   • changes in the tax or accounting treatment of our operations, and the
    impact of other legislation and regulation in the jurisdictions in which we
    operate.


The factors identified above are not exhaustive. MMC and its subsidiaries
operate in a dynamic business environment in which new risks may emerge
frequently. Accordingly, MMC cautions readers not to place undue reliance on its
forward-looking statements, which speak only as of the dates on which they are
made.


MMC undertakes no obligation to update or revise any forward-looking statement
to reflect events or circumstances arising after the date on which it is made.
Further information concerning MMC and its businesses, including information
about factors that could materially affect our results of operations and
financial condition, is contained in MMC's filings with the Securities and
Exchange Commission.


MMC and its operating companies use their websites to convey meaningful
information about their businesses, including the anticipated release of
quarterly financial results and the posting of updates of assets under
management at Putnam. Monthly updates of total assets under management at Putnam
will be posted to the MMC website the first business day following the end of
each month. Putnam posts mutual fund and performance data to its website
regularly. Assets for most Putnam retail mutual funds are posted approximately
two weeks after each month-end. Mutual fund net asset value (NAV) is posted
daily. Historical performance and Lipper rankings are also provided. Investors
can link to MMC and its operating company websites through www.mmc.com.



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