Investments

Blend StrategiesSEPARATELY MANAGED ACCOUNTS2Q

AllianceBernstein International Style Blend ADR PortfolioSecond Quarter 2007

> Integrates the best international ideas of our growth and value teams

> Maintains style balance to reduce risk and increase potential returns

> Rebalances systematically to keep your portfolio on track

Investment Products Offered

• Are Not FDIC Insured • May Lose Value • Are Not Bank Guaranteed

AllianceBernstein’s International Style Blend ADR Portfolio brings you the best international stock ideas of our growth and value investment teams, integrated in a single portfolio that harnesses the power of diversifi cation.

When it comes to international stock markets, style makes a diff erence. Growth and value stocks go in and out of favor over time—relying too much on either growth or value can leave your portfolio open to substantial style risk.

In fact, this style risk has grown in recent years as growth and value returns have continued to go their separate ways. We believe that the best way to approach style in international investing is to strike a balance—and then stick to it.

One Plus One Can Equal More Than TwoOur Blend Strategies Team has designed the International Style Blend ADR Portfolio to take advantage of our best growth and value ideas in both developed and emerging markets.

The Portfolio is a straightforward blend: the high-conviction growth stocks of our Alliance International Large Cap Growth ADR Portfolio and the deep-value companies of our Bernstein International Value ADR Portfolio.

Since the two portfolios behave diff erently even under the same market conditions, their combined diff erences can be a source of strength: they can reduce the overall risk of your international stock portfolio while increasing potential return.

Styles have changed hands repeatedly in international stock markets.

0

5

10

15

20

25

14.0 12.7

8.4 9.7

21.1

14.0

8.4

2.2

1995 1996 1997–99 2000–06

(%)

Growth Value

Past performance does not guarantee future results. Investors cannot invest directly in an index. See back panel for index descriptions.Source: S&P/Citigroup PMI World ex-U.S. growth and value indices.

International Style Blend combines our best growth and value ideas in a single portfolio.

Bernstein International Value ADR

Alliance International Large-Cap Growth ADR

AllianceBernsteinInternational Style Blend

50%

50%

Source: AllianceBernstein

Blending Our Best International Growth and Value Ideas

Blend Strategies | SEPARATELY MANAGED ACCOUNTS | Second Quarter 2007

Different Styles, Different ApproachesWith the International Style Blend ADR Portfolio, you’ll have access to two very diff erent investment styles that can be very eff ective together.

For our growth team, success means fi nding compa-nies whose earnings grow faster than the market expects, creating a “dynamic gap” between our esti-mated earnings growth and the consensus. We’ve found that these companies are often rewarded with strong returns. Our growth analysts focus on the companies showing the largest dynamic gaps.

For our value team, success means using a unique blend of fundamental and quantitative research to identify attractively priced stocks that are suff ering from short-term problems. If these companies go on to fi nd the road to recovery, their stocks will recover and they’ll tend to outperform.

Rebalancing to Keep Your Style Blend on TrackDesigning an eff ective blend portfolio is one thing—keeping it on track is another.

If one style outperforms, it’s easy for your portfolio to end up with more of that style than you origi-nally planned—a problem compounded by some investors who pour money into the winning style.

The Blend Strategies Team follows the timeless principle of buying low and selling high by system-atically rebalancing the Portfolio. Whenever growth or value stocks grow to 55% of the portfolio, the Team trims them to maintain style balance.

This strict rebalancing discipline keeps the Portfolio’s 50/50 blend of growth and value stocks true to its original design.

Our growth and value teams follow very different approaches.

GoalFind underappreciatedgrowth potential

Research QuestionWill growth outpaceexpectations?

GoalBuy out-of-favorbargains

Research QuestionWill depressedearnings recover?

Earnings GrowthAccelerates

Earnings GrowthDecelerates

CorrectiveStrategies

Long-Term Earnings Power

Long-Term Earnings Power

Long-Term Earnings Power

Alliance Growth

Profits &Stock Decline

Bernstein Value

Source: AllianceBernstein

Rebalancing reinforces the buy/low, sell/high discipline

Upper Rebalancing Trigger +5%

Lower Rebalancing Trigger –5%

Strategic Target 50/50

Buy

Sell

As value/growth outperforms,trim investments

As value/growth underperforms, add to investments

Underperform

Outp

erfo

rm

Rebalance Halfway

RebalanceHalfway

Investment policies apply under normal market conditions.Source: AllianceBernstein

Blend Strategies: Powerful Resources Working for YouAllianceBernstein’s blended portfolios represent a powerful combination of forces: our complementary strengths in major investment disciplines and our deep commitment to world-class research.

The Blend Strategies Team integrates the growth and value portfolio building blocks in a blended portfolio that harnesses the power of diversifi cation and the discipline of systematic rebalancing.

In doing so, they’re able to draw on AllianceBernstein’s unparalleled global research platform that fuels our organization. We have over 200 fundamental and quantitative analysts across multiple disciplines, located in 19 cities in 13 countries on six continents.1

A Deep and Experienced Management TeamThe International Style Blend ADR Portfolio benefi ts from the shared insights of three experienced portfolio teams.

The Blend Strategies team smoothly integrates the best ideas of the Alliance International Large Cap Growth Portfolio Team and the Bernstein International Value Investment Policy Group.

Collectively, they form a deep and time-tested group. Working together, they’ve created a style-blended strategy that seeks to increase the return potential of your international stock portfolio while reducing style risk.

We combine a global reach with local expertise.

New York

Mumbai

Moscow

Hong KongLos Angeles

Minneapolis

London

MadridSingapore

Sydney

Tokyo

Cape TownSão Paulo

Wellington

Taipei

Shanghai

Alliance Growth Equities LocationsBernstein Value Equities Locations

As of December 31, 2006

1 Analyst data as of December 31, 2006

International Style Blend benefi ts from deep and experienced management teams.

Number of investment professionals

Average years of

experience

Average years with the fi rm

AllianceBernstein Blend Strategies Investment Team

13 17 8

Alliance Interna-tional Large Cap Growth Portfolio Team

6 19 14

Bernstein International Value Investment Policy Group

18 20 13

Total 37 19 9

As of January 2007Source: AllianceBernstein

AllianceBernstein International Style Blend ADR PortfolioAs of June 30, 2007

Sector Weights1

Portfolio Portfolio Over/Underweight2

Materials 13.6% 4.1%

2.8

1.9

1.7

1.1

0.0

(2.3)

(2.5)

(3.3)

(3.5)

Energy 10.4 Telecommunication Services 7.3 Financials 30.4

Information Technology 6.6

Health Care 6.3

Consumer Discretionary 9.5

Utilities 2.9

Industrials 8.8

Consumer Staples 4.3

Portfolio Characteristics1

Portfolio MSCI EAFE

Number of Holdings 91 1,145

Weighted Market Cap ($ Bil.) 75.0 61.6

Forward Price/Earnings Ratio (2007)3 13.13x 15.01x

EPS Growth (2008/2006)3 12.81% 10.34%

Top 10Holdings1

Credit Suisse 3.7%

BNP Paribas 3.6

Total 2.5

Allianz 2.4

ING Group 2.2

BASF 2.2%

Barclays 2.0

Eni 2.0

Petrobras 1.9

Bayer 1.8

Country Weights1

Other

Spain

Mexico

China

Korea

Italy

Brazil

Ireland

Netherlands

Germany

Switzerland

France

United Kingdom

Japan

Portfolio MSCI EAFE

8.7

2.0

2.2

2.5

2.8

3.6

3.8

4.0

4.4

10.2

11.7

13.7

14.4

16.0%

18.2

4.0

0.0

0.0

0.0

3.8

0.0

0.8

3.5

8.4

6.6

10.4

23.1

21.2%

Portfolio holdings and sector allocations will vary over time.1 Based on a model portfolio. Holdings should not be considered a recommendation to buy, hold or sell any security listed.2 Compared with weightings in the MSCI EAFE3 Current analysis and estimates do not guarantee future results.Source: MSCI and AllianceBernstein

Investments

1345 Avenue of the AmericasNew York, NY 10105

1.800.446.6670

www.alliancebernstein.com

11446

MISB–0175–0607

To learn more about the benefi ts of AllianceBernstein International Style Blend ADR Portfolio, contact either your fi nancial advisor or AllianceBernstein Investments at 800.446.6670.For Canadian fi nancial advisors, please contact your sales team at 416.572.2697.

AllianceBernstein is one of the largest and most established blend managers in the investment-management industry: we manage $146 billion in blend assets for retail, institutional and high-net-worth clients, leveraging our strength in both growth and value investing.1

Our blend services are an important part of a suite of diversifi ed investment solutions that we’ve designed to help our clients build and preserve their wealth. We’re particularly proud of having been highly ranked in a 2005 Greenwich Associates study that polled institutional clients and consultants—among the most discriminating stakeholders in the investment industry.

Our growth services ranked in the top 3%, and our international growth services were ranked in the top 15%. And we placed in the top 1% for both U.S. and international value.2

Our investment services come in a variety of platforms to suit individual needs, including:

> Mutual Funds> Separately Managed Accounts> Subadvisory Services> Education Strategies> Retirement Services

1 As of March 31, 20072 Source: Greenwich Associates Survey of U.S. Institutional Clients and Consultants, 2005. Percentile ranking is calculated using the Greenwich Quality Index, which measures the business performance of investment managers, as judged by institutional consultants. The 2005 peer group included 160 domestic equity investment managers, 195 international equity investment managers and 90 bond managers.

This product profi le is a summary intended for informational purposes, refl ecting prevailing conditions and our judgment as of this date, which are subject to change without notice. It does not constitute investment advice or a recommendation or offer. We consider the information in this update to be accurate, but do not represent that it is complete or should be relied upon as the sole source of suitability for investment. Please see Form ADV Part II for additional information concerning AllianceBernstein’s investment practices and procedures. Past performance is not indicative of future results. No representation or warranty is made as to the effi cacy of any particular strategy or the actual returns that may be achieved.

Index Descriptions: The S&P/Citigroup U.S. Primary Market Index (PMI) Growth measures the performance of U.S. stocks considered growth stocks according to three specifi c criteria: fi ve-year historical earnings-per-share growth rate, fi ve-year historical sales-per-share growth rate, and fi ve-year average annual internal growth rate. The S&P/Citigroup U.S. Primary Market Index (PMI) Value measures the performance of U.S. stocks considered value stocks according to four specifi c ratios: book value per share divided by price, sales per share divided by price, cash fl ow per share divided by price, and dividend divided by price. The MSCI

EAFE® Index (Europe, Australia, Far East) is a free fl oat-adjusted market capitalization index that is designed to measure developed market equity performance, excluding U.S. & Canada

A Word About Risk—The Portfolio can invest in foreign securities. Foreign markets can be more volatile than the U.S. market due to increased risks of adverse issuer, political, regulatory, market or economic developments. Because the Portfolio may invest in emerging markets and in developing countries, an investment also has the risk that market changes or other factors affecting emerging markets and developing countries, including political instability and unpredictable economic conditions, may have a signifi cant effect on the Portfolio’s value.

Note to Canadian Readers:All materials are for fi nancial representative use only and not for distribution to the general public. AllianceBernstein provides its investment management services in Canada through its affi liates Sanford C. Bernstein & Co., LLC and AllianceBernstein Canada, Inc.

AllianceBernstein® and the AB logo are registered trademarks and service marks used by permission of the owner, AllianceBernstein L.P.