DIAMONDS(R) TRUST, SERIES 1
                            (A UNIT INVESTMENT TRUST)

                        SUPPLEMENT DATED NOVEMBER 9, 2004
                      TO PROSPECTUS DATED FEBRUARY 26, 2004

This Supplement dated November 9, 2004 modifies the prospectus for the DIAMONDS
Trust, Series 1 (the "Trust") dated February 26, 2004 and all other supplements
thereto.

On November 8, 2004, State Street Bank and Trust Company, as Trustee of the
Trust, declared a special dividend (the "Special Dividend") to be distributed to
Beneficial Owners of record as of November 17, 2004. The Special Dividend is
being declared in light of the special dividend being paid by Microsoft
Corporation, the common shares of which are held by the Trust. The ex-date for
the Special Dividend is November 15, 2004, and the payment date is December 2,
2004.

The Special Dividend was declared by the Trustee pursuant to authority granted
it by an amendment, dated November 8, 2004 (the "Amendment"), to the Standard
Terms and Conditions of the Trust dated as of January 1, 1998. The Amendment
expands the circumstances under which the Trustee may declare a special dividend
to include circumstances where, in the Trustee's discretion, doing so would be
advantageous to the Beneficial Owners of Trust units.

The Trust's next regularly scheduled dividend will be paid on November 15, 2004.