Bear Stearns Merchant Banking Launches ``Bear Growth Capital Partners''; New Private Equity Venture, Led by Paul Lattanzio, Will Target Middle Market Companies.

Business Editors

NEW YORK--(BUSINESS WIRE)--Aug. 7, 2003

Bear Stearns Merchant Banking announced today the formation of a new group which will focus on identifying private equity investment opportunities in middle market companies valued between $10 million and $100 million dollars. The venture is designed to target companies that fall below the investment parameters of Bear Stearns' $1.5 billion Bear Stearns Merchant Banking Partners II fund. The group will be led by industry veteran Paul Lattanzio who joins the firm as a senior managing director.

"There are a significant number of private equity opportunities in smaller companies that up until now we haven't been well positioned to capitalize on," said John Howard, head of Bear Stearns Merchant Banking. "The addition of an accomplished and seasoned private equity investor like Paul and the formation of this new group will further strengthen our franchise across the private equity spectrum."

Mr. Lattanzio said, "I am excited to join Bear Stearns and to work closely alongside the members of Bear Stearns Merchant Banking. The group's expertise in the private equity space as well as their knowledge of and exposure to potential investment opportunities should provide us with a solid platform on which to build this new effort." Mr. Lattanzio brings with him a former colleague Joe Scharfenberger, who joins the firm as a vice president.

Mr. Lattanzio previously served as a managing director of TD Capital, the Merchant Banking Division of The Toronto Dominion Bank. Prior to that he was a co-founder of NMS Capital Management LLC, a $600 million private equity fund affiliated with NationsBanc Montgomery Securities. Mr. Lattanzio also spent over 13 years with various affiliates of Bankers Trust Company, primarily with BT Capital Partners, Inc., Bankers Trust's private equity arm. He holds a B.S. degree in Economics, with honors, from the Wharton School of the University of Pennsylvania. Mr. Lattanzio also serves as a director of Administaff, Inc. (NYSE: ASF).

Mr. Scharfenberger previously was a vice president at TD Capital, the Merchant Banking Division of The Toronto Dominion Bank and prior to that was an associate in Salomon Smith Barney's Investment Banking Division. Mr. Scharfenberger holds a B.A. degree in Economics, from the University of Vermont.

Bear Stearns Merchant Banking, the dedicated private equity arm of Bear, Stearns & Co. Inc., invests private equity capital in compelling leverage buyouts, recapitalizations and growth capital opportunities alongside superior management teams. Bear Stearns Merchant Banking is investing its current fund, a $1.5 billion equity capital pool. Since its inception in 1997, Bear Stearns Merchant Banking has been an investor in 29 portfolio companies across a broad range of industries. Recent announced acquisitions include Vitamin Shoppe Industries Inc., New York & Company and Packaged Ice, Inc. More information about Bear Stearns Merchant Banking can be found at www.bsmb.com.

Founded in 1923, The Bear Stearns Companies Inc. (NYSE: BSC) is the parent company of Bear, Stearns & Co. Inc., a leading investment banking and securities trading and brokerage firm. With approximately $33.5 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, trading and 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 10,500 employees worldwide. For additional information about Bear Stearns, please visit the firm's Web site at http://www.bearstearns.com.