Eagle Investment Group Partners with Bear Stearns to Launch Private Equity Strategic Alliance in China

Business Wire, March 20, 2007

USD$500 Million Investment Will Focus On Retail and Soft Lines

BEIJING & NEW YORK -- The Bear Stearns Companies Inc., ("Bear Stearns") a leading financial services firm, and Eagle Investment Group ("Eagle"), a Chinese investment firm, today announced the formation of a strategic investment alliance focusing on opportunities in the retail sector in China in conjunction with Bear Stearns' private equity arm, Bear Stearns Merchant Banking ("BSMB"). BSMB is widely known for its experience in investing in successful retail and consumer brands throughout the U.S. Mr. Wong Kwong Yu, the founder of GOME Electrical Group, which is the largest electronics retailer in China, is the chairman of Eagle. Through this alliance, Bear Stearns and Eagle will pledge $250 million to invest together, for a total co-investment platform of $500 million.

"We are excited about this opportunity to invest alongside Bear Stearns," said Mr. Wong, Chairman of Eagle Investment Group. "With its tremendous success, especially in the retail sector, Bear Stearns Merchant Banking will contribute to Eagle's success in China. With our years of retail experience in China, I am looking forward to working with the Bear Stearns Merchant Banking team as they extend their successful track record into China."

"This is an exciting commitment for Bear Stearns," said James E. Cayne, Chairman and Chief Executive Officer of The Bear Stearns Companies Inc. "Mr. Wong is a highly respected leader in the Chinese business community and an excellent business partner. We believe that his capabilities, Bear Stearns' solid backing and the strong track record Bear Stearns Merchant Banking has demonstrated in private equity will make a powerful combination."

Founded in 1997, BSMB is a leading private equity firm with long-standing investment expertise in retail and consumer products companies including Aeropostale, Inc., Balducci's, New York & Company, Inc., Seven for All Mankind, Stuart Weitzman and Vitamin Shoppe Industries, Inc. BSMB looks to partner with entrepreneurs and experienced management teams in well-branded companies that are seeking expansion opportunities. Through this alliance, BSMB will utilize these proven strategies to help retail companies in China.

In 1987, Mr. Wong established GOME, which is the largest retail business listed on the Hong Kong Stock Exchange (HKSE:493) and is a member of the MSCI China Index. In 2006, Mr. Wong was voted one of Time Magazine's "100 Most Influential People in the World," and his other awards include "World's Top Young Entrepreneur," "Top Ten Retailers in China" and "Best Business Leader in China."

"We are looking forward to partnering with Mr. Wong and developing opportunities in China. As a leading entrepreneur in China, he will bring an extraordinary perspective to our investments," said John Howard, Chief Executive Officer, BSMB. "The retail sector is one of the leading growth engines behind the economic expansion in China and we look forward to investing in strong brands that can benefit from our firms' combined expertise."

"Bear Stearns fully appreciates the opportunities that exist in this region," commented Donald Tang, Vice Chairman of Bear, Stearns Co. & Inc. "In bringing together the investing acumen of Bear Stearns Merchant Banking, and vast resources and stellar reputation on Wall Street of Bear Stearns, and the insight and capabilities of Mr. Wong, we are creating an entrepreneurial partnership that is typical of Bear Stearns. China has a growing and dynamic economy; we are convinced there is a vast opportunity for private equity transactions."

Retailers in China today are working quickly to adopt international standards and strengthen their businesses. Investments made through the new alliance will help support China's rapidly maturing and expanding retail sector.

About Eagle Investment Group

Chaired by Mr. Wong Kwong Yu, Eagle Investment Group is an investment holding company managing Pengrun Property and Pengtai Investment as well as Beijing Centergate Technologies with operations across real estate development, construction, property management, pharmaceuticals, securities, asset management and IT. Eagle invested in GOME Electronics, the largest home appliance and consumer electronic goods retailer, which went public in Hong Kong in 2004.

Pengrun Property focuses on several sectors, including development, design, construction, sales and property management. The company successfully brings to market well-know projects, such as Pengrun Homestead, Eagle Run Building, GOME Homestead, GOME 1st City, Tomorrow 1st City, GOME Business City and Dakang Shoes Store. With its land reserves, scale and expertise, Eagle Property has set a solid foundation for its further growth and success.

With strategic investments in commerce, real estate, property management, pharmaceuticals, securities, IT and mining, Pengtai Investment brings companies with proven performance to the capital market and provides them with financial and management support.