EMC Mortgage Corporation Responds to the Devastation of Hurricane Katrina

Business Wire, Sept 9, 2005

IRVING, Texas -- News reports detailing the devastation wrought by Hurricane Katrina across the southern US, particularly in Alabama, Louisiana and Mississippi, have touched us all. Thousands of Americans have lost their lives, and countless others are without homes, power, and transportation. In response to the effects of Hurricane Katrina, EMC Mortgage Corporation has taken steps to lend support both through charity and action.

"Hurricane Katrina was one of the most devastating disasters in US history and it is important for us to render support to those suffering in the storm's aftermath," commented Ralene Ruyle, president of EMC Mortgage Corp. "Our hearts and prayers go out to the hundreds of thousands of people affected by this tragedy. We are all grateful to be able to help."

For its customers, EMC Mortgage Corporation has implemented its emergency response and crisis management plans to assist homeowners affected by the devastating storm. To ensure that EMC customers dealing with the aftermath of Hurricane Katrina receive the help they need with their home mortgages, the following steps have been taken:

--A list of the affected counties has been compiled and all loans in those areas have been identified.

--For the next 90 days, EMC will cease all collections calls, charging of late fees, and credit reporting activity for residents in the affected zip codes.

--All foreclosure and bankruptcy activity has been suspended for 90 days in the FEMA designated zip codes of Alabama, Louisiana and Mississippi, in order to give customers time to accurately assess homeowner damage on an individual basis.

--A special customer service line has been established at 1-866-475-7329. In addition to answering questions and assisting with insurance claims, customer service is also providing Disaster Relief Service phone numbers to customers to aid them in their recovery effort.

--By mid-September, EMC will begin reaching out to customers with a "Status Call" to identify each customer's specific situation as well as assist them with any questions they might have. The primary purpose of the call will be to communicate the 90-day moratorium and to assure the customer that EMC understands their situation and is here to help.

--EMC's insurance provider has expanded customer service hours in the evenings and on Saturdays to make inquiries as convenient as possible for homeowners.

In conjunction with its parent company, The Bear Stearns Companies Inc., all employees are joining together to contribute to the Hurricane Katrina relief efforts. USA Freedom Corps, a US government-sponsored volunteer network, has suggested that the most effective way people can assist relief efforts is by making cash contributions to funds that have been established by the respective state governments in the disaster area. Bear Stearns will donate $250,000 to the relief efforts. In addition, a $500,000 employee matching gift program has been launched. Employees are giving to a number of qualified charities and their gifts will be matched up to $2,500 per employee.

About EMC Mortgage Corporation

With our staff of over 1,200 dedicated and talented professionals, EMC Mortgage Corporation is committed to helping our customers through this most difficult time. EMC Mortgage Corporation remains committed to ensuring we are servicing our homeowner's loans as efficiently as possible while maintaining the highest level of ethical practices and standards. Updated and more detailed information will be provided as it becomes available. Further information about EMC Mortgage Corporation is available on www.emcmortgagecorp.com.

About The Bear Stearns Companies Inc.

Founded in 1923, The Bear Stearns Companies Inc. is the parent company of Bear, Stearns & Co. Inc., a leading investment banking and securities trading and brokerage firm. With approximately $49.4 billion in total capital, Bear Stearns serves governments, corporations, institutions and individuals worldwide. 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. Further information about Bear Stearns is available on www.bearstearns.com.