Bear Stearns

Wendy HsiehTony ChangWenqian WuVasanth Subramaniam

November 7th, 2006

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Overview

Bear Stearns Companies Inc. NYSE: BSC is the parent company of Bear, Stearns & Co. Inc. and is one of the largest and best-known global investment banks and securities trading and brokerage firms in the world.

The company was founded in 1923 and serves corporations, institutions, governments and individuals.

Bear Stearns focuses on three core areas: Capital Markets, Wealth Management, and Global Clearing Services.

Bear Stearns currently employs approximately 11,000 people worldwide. The firm has offices in New York City, Atlanta, Boston, Chicago, Dallas, Denver, Los Angeles, San Francisco and San Juan. Internationally, it holds offices in London, Beijing, Dublin, Herzliya, Hong Kong, Lugano, Milan, São Paulo, Shanghai, Singapore, and Tokyo.

In 2005, Bear Stearns has been recognized as the “Most Admired” securities firm in Fortune’s “America’s Most Admired Companies” survey. This marks the second time in the past three years that Bear Stearns has achieved this top distinction.

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Company Profile

Strengths

Media

Acquisition finance

Transportation

Gaming

Real Estate

Expansion phase

Bear Stearns is one of the three pure play investment banks

Limitations

Smaller balance sheet

Less debt underwriting

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Company Culture and Internship Experience

Culture

Company culture of frugality

Older, more conservative bank (not flashy)

Encourages individualism

Internship Experience

Summer internships are generalists

Choose top 3 or 4 groups and rotate during 10 week internship

First week is training

Interesting projects

Comfortable, teamwork atmosphere

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League Table Rankings

#1 US Residential Mortgage-Backed Securities

#2 US Mortgage-Backed Securities

#3 Global Mortgage-Backed Securities

#5 US Completed M&A Adviser

#5 Global Collateralized Debt Obligations

#6 US Commercial Mortgage-Backed Securities

#8 US Asset-Backed Securities

#10 Global High-Yield Debt

#11 Global Completed M&A Adviser

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Financial Snapshot FY2005

CAPITAL MARKETS

% Increase (Decrease)

2005 2004 2003

2005/2004 2004/2003

(in thousands)        

Net revenues

Institutional equities $1,409,603 $1,071,609 $932,567 31.50% 14.90%

Fixed income $3,251,333 $3,186,741 $2,972,192 2.00% 7.20%

Investment banking $980,459 $1,072,770 $914,558 (8.60%) 17.30%

Total net revenues $5,641,395 $5,331,120 $4,819,317 5.80% 10.60%

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BSC Stock Price

BSC Stock Price 1-Year ($151.35 as of 10/31/2006)

BSC Stock Price 5-Year

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Recent News

November 1, 2006

Bear Stearns Co.'s unit Arroyo Energy LP agreed to acquire privately held Delta Power Co. LLC for undisclosed financial terms.

The New York-based investment banking and securities trading and brokerage firm said interests in 19 power projects are included in the sale of the Morristown, N.J., owner and manager of power generation projects.

Bear Stearns' revenue last year was $7.4 billion.

October 27, 2006

Standard & Poor's on October 27, 2006 raised its ratings on Bear Stearns Cos., citing the company's stable profits and conservative management.

Bear Stearns in September said strong mortgage-backed bond activity helped boost third-quarter net income nearly 16 percent, topping Wall Street expectations, amid some worries a cooling U.S. housing market will hurt the investment bank's bread-and-butter business.

October 10, 2006

Bear Stearns beefs up Europe real estate lending. Bear Stearns International has expanded its commercial real estate lending business in Europe with the appointments of Stephen Haskin and Steve Williams as co-heads, the bank said on October 10, 2006. Haskin and Williams, both managing directors, will develop both securitized and non-securitized lending as well as other principal activities related to commercial real estate in Europe. They plan to make additional hires as the business expands.

October 10, 2006

Bear Stearns agrees to buy subprime origination unit. Bear Stearns Companies Inc.said on Tuesday it had agreed to acquire ECC Capital Corp.'s mortgage origination unit.

Under the agreement, Bear Stearns' mortgage bank subsidiary, Bear Stearns Residential Mortgage Corp., will purchase the subprime mortgage origination platform of ECC Capital's subsidiary, Encore Credit Corp.

Encore Credit specializes in originating mortgages for borrowers with less than stellar credit ratings.

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Recent News

October 4, 2006

Bear Sterns continues expansion in Asia with three hires in structured equity products.

Bear, Stearns Asia Limited has broadened its structured equity product offering in Asia with three new hires in Hong Kong. New services include synthetic equity finance, such as equity swaps and other derivative-based instruments, and a synthetic prime brokerage service to handle financing and execution. Bear Stearns now offers these services to clients worldwide.

September 14, 2006

Bear Sterns reports third quarter earnings per share of $3.02 net income rises 16% to $438 million

Highest Ever Net Revenues, Net Income And Earnings Per Share For The First Nine Months Of 2006

Fixed Income Net Revenues Up 19%Institutional Equities Net Revenues Up 31%Wealth Management Net Revenues Up 36%

August 17, 2006

Bear Stearns announced today that the Japanese-based rating agency Rating & Investment Information Inc. ("R&I"), has upgraded the issuer rating of The Bear Stearns Companies Inc.to "AA-" from "A+" with "Stable Outlook". R&I cited the firm’s continued dominant market position in the prime brokerage area of its global clearing services segment in the face of increasing global competition and the successful diversification of Bear Stearns revenue sources.