For Immediate ReleaseBEAR STEARNS RESPONDS TO S&P ACTION Firm Will Hold Investor Conference Call Today At 2 p.m. (ET) NEW YORK, New York-August 3, 2007-The Bear Stearns Companies Inc. (NYSE: BSC) said today that it is disappointed with S&P’s decision to change its outlook on Bear Stearns. Most of the themes highlighted in its report are common to the industry and are not likely to have a disproportional impact on Bear Stearns. S&P’s specific concerns over issues relating to certain hedge funds managed by BSAM are unwarranted as these were isolated incidences and are by no means an indication of broader issues at Bear Stearns. “S&P’s action highlights the concerns in the marketplace over the recent instability in the fixed income environment,” said James E. Cayne, chairman and chief executive officer of The Bear Stearns Companies Inc. “Contrary to rumors in the marketplace, our franchise is profitable and healthy and our balance sheet is strong and liquid. Bear Stearns has thrived throughout both tumultuous and fortuitous markets for the past 84 years. We are experiencing another market cycle and we are confident in Bear Stearns’ ability to succeed in this environment as it has in so many others.” With respect to operating performance and financial condition, the company has been solidly profitable in the first two months of the quarter, while the balance sheet, capital base and liquidity profile have never been stronger. Bear Stearns’ risk exposures to high profile sectors are moderate and well-controlled. The risk management infrastructure and processes remain conservative and consistent with past practices. This structure and strong risk management culture has allowed the firm to operate for all of its history as a public company without ever having an unprofitable quarter. All other major rating agencies have affirmed their stable or positive outlook on Bear Stearns within the last six weeks. Bear Stearns will be hosting an investor conference call today, August 3, 2007, led by Sam Molinaro, Executive Vice President and Chief Financial Officer, at 2 p.m. (ET). Those wishing to listen to the call should dial toll-free 1-800-374-2412 (or 1-706-634-7253 for international callers) at least 10 minutes prior to the start of the call to ensure connection to the conference. A replay of the call will be available after 4:00 p.m. (ET) by calling 1-800-642-1687, the passcode for the call is 12373221. The conference call will also be accessible through the firm’s Web site at www.bearstearns.com If you have any questions on how this will effect the sub prime market please email me at[email protected] or call 303.779.0591~ Cheers~ Ray | 
