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                      SECURITIES AND EXCHANGE COMMISSION
                            Washington, D.C.  20549

                                 SCHEDULE 13G
                                (Rule 13d-102)


             INFORMATION TO BE INCLUDED IN STATEMENTS FILED PURSUANT
           TO RULES 13d-1(b),(c) AND (d) AND AMENDMENTS THERETO FILED
                           PURSUANT TO RULE 13d-2(b)

                               (Amendment No.1)


			ARI NETWORK SERVICES INC.
--------------------------------------------------------------------------------
                                (Name of Issuer)


					Common Stock
--------------------------------------------------------------------------------
                         (Title of Class of Securities)


					001930205
--------------------------------------------------------------------------------
                                 (CUSIP Number)


			August 31, 2001
--------------------------------------------------------------------------------
            (Date of Event Which Requires Filing of this Statement)

     Check the  appropriate  box to  designate  the rule  pursuant to which this
Schedule is filed:

          [X]  Rule 13d-1(b)

          [_]  Rule 13d-1(c)

          [_]  Rule 13d-1(d)

	[_]  Rule 13d-2(c)
-------------------------------------------------------------------------------
(1)  The  remainder  of this  cover  page  shall be filled  out for a  reporting
     person's  initial  filing on this form with respect to the subject class of
     securities,  and for any subsequent amendment containing  information which
     would alter the disclosures provided in a prior cover page.

     The information required in the remainder of this cover page shall not be
deemed to be "filed"  for the purpose of Section 18 of the  Securities
Exchange Act of 1934 or otherwise subject to the liabilities of that section
of the Act but  shall be  subject  to all other  provisions  of the Act
(however,  see the Notes).

PAGE  2
CUSIP No.   001930205                  13G                    Page 2 of 6 Pages


________________________________________________________________________________
1.   NAME OF REPORTING PERSONS
     I.R.S. IDENTIFICATION NO. OF ABOVE PERSONS (ENTITIES ONLY)

		Merrill Lynch and Co., Inc.(ML&Co.)
			13-2740599
________________________________________________________________________________
2.   CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
                                                                 (a)  [_]
                                                                 (b)  [_]

________________________________________________________________________________
3.   SEC USE ONLY



________________________________________________________________________________
4.   CITIZENSHIP OR PLACE OF ORGANIZATION

		Delaware

________________________________________________________________________________
  NUMBER OF    5.   SOLE VOTING POWER

   SHARES           	None
               _________________________________________________________________
BENEFICIALLY   6.   SHARED VOTING POWER

  OWNED BY          	None
               _________________________________________________________________
    EACH       7.   SOLE DISPOSITIVE POWER

  REPORTING         	None
               _________________________________________________________________
   PERSON      8.   SHARED DISPOSITIVE POWER

    WITH            	None
________________________________________________________________________________
9.   AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON

				0

________________________________________________________________________________
10.  CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN SHARES*

                                                                          [_]

________________________________________________________________________________
11.  PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (9)

				0%

________________________________________________________________________________
12.  TYPE OF REPORTING PERSON*

		HC, CO
________________________________________________________________________________
                     *SEE INSTRUCTIONS BEFORE FILLING OUT!

PAGE  3
CUSIP No.   001930205                  13G                    Page 3 of 6 Pages


________________________________________________________________________________
1.   NAME OF REPORTING PERSONS
     I.R.S. IDENTIFICATION NO. OF ABOVE PERSONS (ENTITIES ONLY)

		Merrill Lynch International

________________________________________________________________________________
2.   CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
                                                                 (a)  [_]
                                                                 (b)  [_]

________________________________________________________________________________
3.   SEC USE ONLY



________________________________________________________________________________
4.   CITIZENSHIP OR PLACE OF ORGANIZATION

		England

________________________________________________________________________________
  NUMBER OF    5.   SOLE VOTING POWER

   SHARES           	0
               _________________________________________________________________
BENEFICIALLY   6.   SHARED VOTING POWER

  OWNED BY          	None
               _________________________________________________________________
    EACH       7.   SOLE DISPOSITIVE POWER

  REPORTING         	0
               _________________________________________________________________
   PERSON      8.   SHARED DISPOSITIVE POWER

    WITH            	None
________________________________________________________________________________
9.   AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON

				0

________________________________________________________________________________
10.  CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN SHARES*

                                                                          [_]

________________________________________________________________________________
11.  PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (9)

				0%

________________________________________________________________________________
12.  TYPE OF REPORTING PERSON*

		BD, CO
________________________________________________________________________________
                     *SEE INSTRUCTIONS BEFORE FILLING OUT!

PAGE  4
CUSIP No. 001930205                  13G                    Page 4 of 6 Pages

________________________________________________________________________________
Item 1(a).  Name of Issuer:

 				ARI NETWORK SERVICES INC. / WI

________________________________________________________________________________
Item 1(b).  Address of Issuer's Principal Executive Offices:

				330 EAST KILBOURN AVE
				SUITE 200
				MILWAUKEE, WI 53202
________________________________________________________________________________
Item 2(a).  Name of Person Filing:

		Merrill Lynch & Co., Inc.

________________________________________________________________________________
Item 2(b).  Address of Principal Business Office, or if None, Residence:

		Merrill Lynch & Co., Inc.
		4 World Financial Center, FL 12
		New York, New York 10080
_______________________________________________________________________________

Item 2(c).  Citizenship:

		SEE ITEM 4 OF COVER PAGES
________________________________________________________________________________
Item 2(d).  Title of Class of Securities:

		SEE COVER PAGE
________________________________________________________________________________
Item 2(e).  CUSIP Number:

		SEE COVER PAGE
________________________________________________________________________________
Item 3.

Merrill Lynch & Co. is a parent holding company in accordance with Rule 13d-
1(b)(1)(ii)(G).  Merrill Lynch International (MLI), a London based broker-
dealer in securities, is a member of the International Securities Markets
Association and its activities are regulated by the U.K. Securities and
Futures Authority Limited and the London Stock Exchange.

PAGE  5
CUSIP No.   001930205                   13G                    Page 5 of 6 Pages


Item 4.  Ownership.

     Provide  the  following  information  regarding  the  aggregate  number and
percentage of the class of securities of the issuer identified in Item 1.

     (a)  Amount beneficially owned:		SEE ITEM 9 OF COVER PAGES

     (b)  Percent of class:			SEE ITEM 11 OF COVER PAGES

     (c)  Number of shares as to which such person has:

          (i)   Sole power to vote or to direct the vote:
SEE ITEM 5 OF COVER PAGES
          (ii)  Shared power to vote or to direct the vote:
							SEE ITEM 6 OF COVER PAGES
          (iii) Sole power to dispose or to direct the disposition of:
							SEE ITEM 7 OF COVER PAGES
          (iv)  Shared power to dispose or to direct the disposition of
							SEE ITEM 8 OF COVER PAGES
_____________________________________________________________________________
Item 5.  Ownership of Five Percent or Less of a Class.

			If this statement is being filed to report the fact that as of
the date hereof the reporting person has ceased to be the beneficial owner of
more than 5 percent of the class of securities, check the following [X]
________________________________________________________________________________
Item 6.  Ownership of More Than Five Percent on Behalf of Another Person.

NOT APPLICABLE
________________________________________________________________________________

Item 7.  Identification and Classification of the Subsidiary Which Acquired the
         Security Being Reported on by the Parent Holding Company.

The relevant subsidiary of ML&Co. is Merrill Lynch International, a London
based
Broker-dealer in securities which provides its customers with general
investment banking, advisory, dealing and corporate finance services,
organized under the laws of England and Wales.  Merrill Lynch International
is an indirect wholly owned subsidiary of ML&Co.
_____________________________________________________________________________
___
Item 8.  Identification and Classification of Members of the Group.

			NOT APPLICABLE
________________________________________________________________________________
Item 9.  Notice of Dissolution of Group.

			NOT APPLICABLE
________________________________________________________________________________








PAGE  6
CUSIP No.   001930205                  13G                    Page 6 of 6 Pages


Item 10.  Certifications.

By signing below each of the undersigned certifies that, to the best of their
knowledge and belief, the securities referred to above were acquired and are
held in the ordinary course of business and were not acquired and are not
held for the purpose of or with the effect of changing or influencing  the
control of the issuer of the securities and were not acquired and are not
held in connection with or as a participant  in any  transaction having that
purpose or effect.







                                    SIGNATURE

After  reasonable  inquiry and to the best of my knowledge and belief, the
undersigned certifies that the information set forth in this statement is true,
complete and correct.

Date: September 7, 2001


Merrill Lynch & Co. Inc.


/s/
----------------------------------------
Name: Lawrence M. Egan
Title: Attorney-In-Fact*





----------------------------------------

Date: September 7, 2001


Merrill Lynch International


/s/
----------------------------------------
Name: Larry Dobosh
Title: Attorney-In-Fact





----------------------------------------
* Executed pursuant to a Power of Attorney, dated November 17, 1995, a copy of
which is attached hereto as Exhibit A.







Exhibit A to Schedule 13G


Power of Attorney

The undersigned, Merrill Lynch & Co., Inc. (the Corporation), a
corporation duly organized under the laws of Delaware, with its
principal place of business at World Financial Center, North
Tower, 250 Vesey Street, New York, New York 10281 does hereby
make, constitute and appoint Richard B. Alsop, Richard D.
Kreuder, Andrea Lowenthal, Gregory T. Russo, or any other
individual from time to time elected or appointed as secretary
or an assistant secretary of the Corporation, acting severally,
each of whose address is Merrill Lynch & Co., Inc., World
Financial Center, North Tower, 250 Vesey Street, New York, New
York 10281, as its true and lawful attorneys-in-fact, for it
and in its name, place and stead (i) to execute on behalf of
the Corporation and cause to be filed and/or delivered, as
required under Section 13(d) of the Securities Exchange Act of
1934 (the "Act") and the regulations thereunder, any number, as
appropriate, of original, copies, or electronic filings of the
Securities and Exchange Commission Schedule 13D or Schedule 13G
Beneficial Ownership Reports (together with any amendments and
joint filing agreements under Rule 13d-1(f) (1) of the Act, as
may be required thereto) to be filed and/or delivered with
respect to any equity security (as defined in Rule 13d-1(d)
under the Act) beneficially owned by the undersigned and which
must be reported by the undersigned pursuant to Section 13(d)
of the Act and the regulations thereunder, (ii) to execute on
behalf of the Corporation and cause to be filed and /or
delivered, any number, as appropriate, of original, copies or
electronic filings of any forms (including without limitation),
Securities and Exchange Commission Forms 3, 4 and 5) required
to be filed pursuant to Section 16 (a) of the Act and the
regulations thereunder, and (iii) generally to take such other
actions and perform such other things necessary to effectuate
the foregoing as fully in all respects as if the undersigned
could do if personally present.  This Power of Attorney shall
remain in effect until revoked, in writing, by the undersigned.

	IN WITNESS WHEREOF, the undersigned has executed this
Power of Attorney, this 17th day of November 1995.



				MERRILL LYNCH & CO., INC.


				By:      /s/ David H. Komansky
				Name:	David H. Komansky
				Title:	President and Chief Operating
Officer