Bear Stearns Asset Management Selected as a Strategic Advisor for CalPERS Manager Development Program II.

NEW YORK -- Bear Stearns Asset Management today announced that it has earned approval from California Public Employees' Retirement Systems (CalPERS) for entry in the "spring-fed pool of advisors" in the anticipated Manager Development Program II (MDP II). The CalPERS program assists in the creation and development of investment management firms and hedge fund of funds.

Commenting on the selection, Richard Marin, chairman and chief executive officer of Bear Stearns Asset Management, said, "We view our selection as a strategic advisor in the spring fed pool to CalPERS as further evidence of the significantly enhanced risk management capability Bear Measurisk adds for the management and selection of hedge fund of fund products. We are pleased to be able to provide our service to this institution."

Bear Measurisk LLC, a majority owned subsidiary of Bear Stearns Asset Management Inc., is a leading provider of sophisticated risk transparency and risk monitoring solutions. Bear Measurisk's independent, third party risk solutions are designed to evaluate and address the diverse risk management needs of pension plans, endowments and foundations, insurance companies, hedge funds and funds of hedge funds.

The official launch of the program will occur in the fourth quarter of 2005, and will be open to emerging investment management firms offering strategies in public equity long-only and hedge funds of funds. With more than $196 billion in assets, CalPERS is the largest public pension system in the United States and provides retirement and health benefits to more than 1.4 million state and local public employees and their families.

The arrangement allows CalPERS to seek superior investment returns while providing opportunities to new and emerging firms that may not possess the long-term track record, assets under management or marketing muscle to compete against more established firms. As part of the program, CalPERS will take an equity position in each candidate firm and provide some firms with assistance in business management and development.

About Bear Stearns Asset Management Inc.

Bear Stearns Asset Management Inc. was founded in 1984 as a division of Bear, Stearns & Co. Inc. and is now a wholly-owned subsidiary of The Bear Stearns Companies Inc. The firm currently manages more than $32.5 billion in assets, with expertise spanning equity, fixed income and alternative investment strategies, while providing comprehensive asset management services to institutional and high-net-worth investors. Corporations, municipal governments, multi-employer plans, endowments, foundations and family groups rely on BSAM's disciplined investment processes, investment performance and superior client service.

About Bear Stearns

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 $52.1 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 11,500 employees worldwide. For additional information about Bear Stearns, please visit the firm's website at http://www.bearstearns.com.