Bear Expands Metals Business; Robert Gottlieb Hired to Expand Gold and Silver Sales & Trading.

NEW YORK -- Bear, Stearns & Co. Inc. announced today it has hired industry expert Robert Gottlieb to significantly expand the company's precious metals sales and trading efforts.

Mr. Gottlieb, who joins Bear Stearns as a managing director, will be responsible for growing the metals department into a 24-hour global client-driven business with trading and sales specialists in New York and London by next year. The business will focus on gold, silver, platinum and palladium. Formerly managing director of trading and sales for precious metals at HSBC, he will report to David Schoenthal, Bear Stearns' head of foreign exchange.

"We are expanding our metals business because it is an asset class of great interest to our clients," said Mr. Schoenthal. "Many fund and asset managers want to diversify their portfolios, and gold and silver are high on their list. I'm pleased to have someone with Robert Gottlieb's depth of experience and reputation to develop this business for us."

Bear Stearns joined the London Metals Exchange in May as an Associate Broker Clearing member. The metals business will focus on the needs of clients, comprised mainly of central banks and agencies, mining companies, multi-national corporations, mid-level financial institutions and high net worth individuals in addition to hedge, mutual and other investment funds.

"Gold is on 24-year highs because of a recent shift in investment allocations to commodities by a wide audience," Mr. Gottlieb said. "Pension funds and asset managers believe precious metals are attractive as an alternative investment. Bear Stearns has a strong retail and fund client base and all the important components necessary to build a successful metals business."

Mr. Gottlieb brings with him more than 20 years of experience in metals, trading and risk management. He earned an MBA from St. John's University and spent 10 years at Citibank where he helped to develop its metals business before leaving as head trader. Mr. Gottlieb expanded the precious metals trading business at Republic National Bank, including integrating Republic's purchase of Mace Westpac.

Founded in 1923, Bear, Stearns & Co. Inc. is a leading investment banking and securities trading and brokerage firm, and the major subsidiary of The Bear Stearns Companies Inc. (NYSE:BSC). With approximately $54.3 billion in total capital, Bear Stearns serves governments, corporations, institutions and individuals worldwide. The company's business includes corporate finance and mergers and acquisitions, institutional equities and fixed income sales and trading, securities research, private client services, derivatives, foreign exchange and futures sales and trading, asset management and custody services. Through Bear, Stearns Securities Corp., it offers financing, securities lending, clearing and technology solutions to hedge funds, broker-dealers and investment advisors. Headquartered in New York City, the company has approximately 12,000 employees worldwide. For additional information about Bear Stearns, please visit the firm's website at www.bearstearns.com.