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

Beijing, China and New York, United States

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.

About Bear Stearns

Founded in 1923, The Bear Stearns Companies Inc. (NYSE: BSC) is a leading financial services firm serving governments, corporations, institutions and individuals worldwide. The Company's core business lines include institutional equities, fixed income, investment banking, global clearing services, asset management, and private client services. Headquartered in New York City, the company has approximately 14,500 employees worldwide. For additional information about Bear Stearns, please visit the firm's web site at www.bearstearns.com.

About BSMB

BSMB, the private equity affiliate of The Bear Stearns Companies Inc. (NYSE: BSC), invests private equity capital in compelling leveraged buyouts, recapitalizations and growth capital opportunities alongside superior management teams. BSMB focuses on making control or entrepreneur-driven investments, principally in middle-market retail, financial services and consumer products companies. Since its formation in 1997, BSMB has been an investor in over 50 portfolio companies. BSMB manages nearly $5 billion of private equity capital, including its new $2.7 billion institutional fund and capital dedicated to its affiliate, Bear Growth Capital Partners. Investments by BSMB include: ACA Capital Holdings (NYSE: ACA), Alter Moneta, Balducci's, CamelBak Products, Caribbean Financial Group, Cavalry Investments, Churchill Financial Holdings, Dairyland, Everything But Water, Harlem Furniture, Ironshore Inc., Multi Packaging Solutions, New York & Company (NYSE: NWY), PlayCore, Seven For All Mankind, Stuart Weitzman, Transamerican Auto Parts Company and The Vitamin Shoppe. More information about BSMB is available at www.bsmb.com

CONTACT: Eagle Investment Group Fleishman-Hillard Li Bo (8610) 5869 1666 lib@fleishman.com or Matt Wisla (8610) 5869 1666 wislam@fleishman.com or Bear Stearns Russell Sherman 212-272-5219 RussellSherman@Bear.com or Ogilvy PR Philip Lisio (8610) 8520 6505 philip.lisio@ogilvy.com or Bear Stearns Merchant Banking Brunswick Group Melissa Daly 212-333-3810 Mdaly@BrunswickGroup.com

Source: Business Wire (Business Wire India)

Other Press Releases for March , 2007