Bear Stearns Corrects and Replaces Previous Announcement.

NEW YORK--(BUSINESS WIRE)--June 10, 1997--Bear Stearns Asset Management (BSAM) announced today that Barry Sommers has joined the firm as a managing director and head of marketing and sales for The Bear Stearns Funds. Mr. Sommers will manage a team of wholesalers responsible for marketing the mutual funds to the broker-dealer and bank communities. He will also manage the telemarketing team, wholesale to top accounts and assist in product development and marketing support.

Mr. Sommers comes to Bear Stearns after two years with Goldman, Sachs & Co. where he was a vice president in mutual fund sales responsible for building the sales force, signing dealer agreements and selling top accounts in the Northeast region. Prior to that, Mr. Sommers was a vice president at Putnam Investments responsible for variable annuity sales for three years. Mr. Sommers began his career at NTS Corporation, a real estate limited partnership in Louisville, KY. Mr. Sommers holds a B.S. from Ohio University.

Senior Managing Director Doni Fordyce, head of marketing for Bear Stearns Asset Management, said, "Bear Stearns is taking its mutual fund business to a higher level. Hiring an accomplished individual like Barry Sommers confirms our strong commitment to the funds."

"The Bear Stearns Funds are strengthened by the entire resources of one of Wall Street's top financial institutions. With this firm foundation, I look forward to growing the sales force, hiring key account people and rounding out Bear Stearns' family of mutual funds with some unique products," added Mr. Sommers. "I also intend to increase distribution by adding new channels for The Bear Stearns Funds."

The Bear Stearns Funds include 6 mutual funds: S&P STARS Portfolio, The Insiders Select Fund, Large Cap Value Portfolio, Small Cap Value Portfolio, Total Return Bond Portfolio and the Emerging Markets Debt Portfolio.

Founded in 1984, Bear Stearns Asset Management is a division of Bear, Stearns & Co., Inc. As of March 31, 1997, the division managed in excess of $8 billion in assets. Bear Stearns Funds Management is the registered investment advisor of The Bear Stearns Funds and an affiliate of Bear, Stearns & Co., Inc., a leading worldwide investment banking and securities trading and brokerage firm, and the major subsidiary of The Bear Stearns Companies Inc. (NYSE: BSC). With approximately $10.6 billion in total capital, Bear Stearns serves governments, corporations, institutions and individuals worldwide. The company's also business includes corporate finance and mergers and acquisitions, institutional equities and fixed income sales and trading, private client services, derivatives, correspondent clearing, securities lending, and custody services. Headquartered in New York City, the company has over 8,000 employees located in domestic offices in Atlanta, Boston, Chicago, Dallas, Los Angeles, and San Francisco; and an international presence in Beijing, Buenos Aires, Dublin, Geneva, Hong Kong, London, Lugano, Paris, Sao Paulo, Shanghai, Singapore, and Tokyo.

CONTACT: Mary Flounders Green [phone]