Bear Stearns Acquires Stake in UK-Based ICMG/Essex & Capital Mortgage Corporation Limited

Business Wire, April 4, 2005

NEW YORK -- The Bear Stearns Companies Inc. announced today that, subject to the FSA's approval, it has acquired an ownership stake in UK based Essex & Capital Mortgage Corporation Limited. Prior to consummation of the transaction, Essex & Capital will acquire its "packager" affiliate ICMG. Essex & Capital is an independent mortgage broker that specializes in the sub-prime mortgage market. In its new role, Essex & Capital will process residential loan packages from brokers or consumers and aggregate them for placement with lenders. Terms of the deal were not disclosed. E[acute accent]"We are very pleased to have had the opportunity to acquire a stake in Essex & Capital," said Tom Marano, senior managing director and global head of mortgage-backed and asset-backed securities at Bear Stearns. "This is a proven team with an impressive track record in the UK mortgage market. It puts in place another important element of our strategy to extend the global reach of our mortgage securities franchise and create additional growth opportunities." E[acute accent]Chris Gardner, managing director of Essex & Capital, added, "We're particularly looking forward to developing our relationship with Bear Stearns. By aligning ourselves with such a powerful participant in the mortgage market, we will be better able to serve our existing customers and expand our reach." E[acute accent]Essex & Capital currently has a working relationship with one of Bear Stearns' mortgage subsidiaries, Rooftop Mortgages Ltd. Rooftop is one of the lenders Essex & Capital supplies with loans. Rooftop will continue to pursue its strategy of maintaining diversified origination channels. E[acute accent]"This acquisition will further streamline the process for all the parties involved," said Richard Downer, senior managing director of mortgage and consumer assets at Bear, Stearns International Limited. "Strategically this will provide a consistent flow of product to our Rooftop subsidiary." E[acute accent]Gardner added, "At the outset our primary focus will be on building both the business-to-business and business-to-consumer packages with Bear Steams, while constantly exploring additional avenues of growth."

E[acute accent]About Bear Stearns

E[acute accent]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 $48.8 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 11,000 employees worldwide. For additional information about Bear Stearns, please visit the firm's website at http://www.bearstearns.com. E[acute accent]Bear, Stearns International Limited (BSIL) is a wholly owned subsidiary of The Bear Stearns Companies Inc. (NYSE:BSC). BSIL currently employs more than 800 staff in London who serve corporations, institutions, partnerships and governmental entities in the United Kingdom, Europe and the Middle East. BSIL's capabilities include investment banking, institutional equities and fixed income sales, trading and research, derivatives, financial futures, foreign exchange, global clearing and private client services. Bear, Stearns International Limited is authorized and regulated by the Financial Services Authority.

E[acute accent]About Essex & Capital Mortgage Corporation Limited

E[acute accent]Essex & Capital Mortgage Corporation Limited was established to distribute non-conforming residential mortgages to borrowers in South East England. It is an independent mortgage broker that specializes in the sub-prime mortgages. Essex & Capital Mortgage Corporation Limited is authorized and regulated by the Financial Services Authority.