-- M&I sells $297 million in predominantly nonperforming residential

first mortgage loans on July 31, 2009.

-- A recent accounting standard on subsequent events requires transaction

to be reported retroactively in second quarter.

-- Sale results in decrease in nonperforming loans in comparison to July 17

press release.

-- Allowance for loan and lease losses increased slightly to 2.84 percent

of total loans after accounting adjustment.

-- As a result of this accounting adjustment, third quarter provision and

charge-offs expected to be significantly less than reported on July 17.

Marshall & Ilsley Corporation (NYSE: MI) (M&I) today announced that the second quarter results reported on July 17 would be adjusted based on the sale of a pool of predominantly nonperforming residential loans completed on July 31, 2009. This adjustment reflects management's consideration of transactions completed subsequent to June 30, 2009 in order to comply with a recent accounting standard on subsequent events which requires certain post quarter-end events to be retroactively applied.

In this transaction, M&I sold approximately 800 residential mortgage loans with an unpaid principal balance of $297 million, predominantly all of which were nonperforming first mortgage loans and approximately two-thirds of which were located in Arizona.

Adjusted Results

The sale of the residential loan pool resulted in additional second quarter charge-offs of $151 million. The allowance for loan and lease losses remains at the same level ($1.37 billion) as reported on July 17. The adjustment resulted in total net charge- offs for the second quarter of $603.3 million and provision for loan and lease losses of $619.0 million. This, in turn, resulted in a loss for the second quarter of $0.83 per share and a loss for the six months ended June 30, 2009 of $1.29 per share. At June 30, 2009 and as adjusted, the allowance for loan and lease losses was 2.84 percent of total loans and leases, nonperforming loans and leases were 5.01 percent of total loans and leases, and the tangible common equity ratio was 7.2 percent.

Third Quarter Outlook

Prior to this adjustment, the Corporation had expected the provision for loan and lease losses and net charge-offs for the third quarter of 2009 would be in the approximate range of the provision and net charge-offs reported on July 17 for the second quarter of 2009. This adjustment has the impact of accelerating a portion of the expected third quarter provision for loan and lease losses and net charge-offs into the second quarter of 2009. Consequently, the Corporation expects that the provision for loan and lease losses and net charge-offs in the third quarter of 2009 will be significantly less than the provision for loan and lease losses and net charge-offs reported on July 17 ($468.2 million and $452.6 million, respectively).

Currently, the Corporation expects a relative stabilization in the nonperforming loan and lease levels based on early third quarter results. The net interest margin is also expected to improve over time although it is not expected that such improvement will be reflected in third quarter results.

For a more complete description of second quarter results, including historical comparative information, please see M&I's Form 10-Q which will be filed with the SEC later today. Additional supplemental financial information will be posted on micorp.com, Investor Relations this week.

About Marshall & Ilsley Corporation

Marshall & Ilsley Corporation (NYSE: MI) is a diversified financial services corporation headquartered in Milwaukee, Wis., with $59.7 billion in assets. Founded in 1847, M&I Marshall & Ilsley Bank is the largest Wisconsin-based bank, with 193 offices throughout the state. In addition, M&I has 53 locations throughout Arizona; 32 offices in Indianapolis and nearby communities; 36 offices along Florida's west coast and in central Florida; 16 offices in Kansas City and nearby communities; 26 offices in metropolitan Minneapolis/St. Paul, and one in Duluth, Minn.; and one office in Las Vegas, Nev. M&I's Southwest Bank subsidiary has 17 offices in the greater St. Louis area. M&I also provides trust and investment management, equipment leasing, mortgage banking, asset- based lending, financial planning, investments, and insurance services from offices throughout the country and on the Internet (www.mibank.com or www.micorp.com). M&I's customer-based approach, internal growth, and strategic acquisitions have made M&I a nationally recognized leader in the financial services industry.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements include, without limitation, statements regarding expected financial and operating activities and results that are preceded by, followed by, or that include words such as "may," "expects," "anticipates," "estimates" or "believes." Such statements are subject to important factors that could cause M&I's actual results to differ materially from those anticipated by the forward-looking statements. These factors include: (i) M&I's exposure to the deterioration in the commercial and residential real estate markets, along with the deterioration in the U.S.