Bear Stearns Launches the Bear Stearns ComprehensiveEuro Index.

NEW YORK and LONDON--(BUSINESS WIRE)--July 15, 1998--Bear Stearns announced today the launch of its Comprehensive Euro Index (BSCEuro) with an inception date of 12/31/98. The index will provide a benchmark investible framework in the single currency environment. The Comprehensive Euro index, in conjunction

Specifically, the Comprehensive Euro index will include all investment grade products currently issued in the currencies of the 11 EMU member countries that meet specific investibility criteria. In particular, the liquidity selection criteria will be based on a sliding scale depending on country, rating and asset class to mirror the evolution of the entire spread product sector. For example, AAA liquid government and supranational securities will have higher liquidity thresholds for inclusion than A rated corporate securities. These unique scales are designed to accommodate the changing nature of issuance and investor activity in the post 1999 EMU environment. The asset classes in the BSCEuro index will be governments, sovereigns, supranationals, corporates, ABS, MBS, and potentially senior tranches of CBOs and CLOs.

"The decision to build a benchmark Euro index underscores the firm's commitment to being at the forefront of a rapidly changing credit market in Europe," said Brett Graham, head of European capital markets for Bear Stearns in London. "It follows an extensive conversation with investors across the new single currency community for whom we expect the flexible threshold criteria to resonate clearly."

The Bear Stearns Comprehensive Euro index will form an integral reference platform that investors can utilize to optimize management decisions, applying appropriate Quantacc (quantitative analysis of cashflow and credit) and qualitative credit research considerations. Analytic reports will combine aggregate performance characteristics with portfolio optimization strategies at the individual bond level, stress tested under various spread scenarios (market, credit, prepayment or volatility). The Comprehensive Euro index will be housed in "HYDRA", the proprietary Bear Stearns global analytical system, created by the F.A.S.T. (Financial Analytics and Structured Transactions) department. HYDRA is a consolidated platform encompassing both an extensive pricing database and specific analytical tools for the entire arena of fixed income and derivative products.

"Increasingly, our clients are searching not only for a benchmark in the new spread-driven EMU environment, but the means to restructure their entire approach to the investment management process," said Nomi Prins, Head of F.A.S.T. Europe. "Our Comprehensive Euro index is designed for both."

Bear, Stearns & Co. Inc., a leading worldwide investment banking and securities trading and brokerage firm, is the major subsidiary of The Bear Stearns Companies Inc. (NYSE: BSC). With approximately $16.3 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, private client services, derivatives, asset management, correspondent clearing, securities lending, and custody services. Headquartered in New York City, the company has over 9,000 employees located in domestic offices in Atlanta, Boston, Chicago, Dallas, Los Angeles, and San Francisco; and an international presence in Beijing, Buenos Aires, Dublin, Geneva, Hong Kong, London, Lugano, Paris, Sao Paulo, Shanghai, Singapore, and Tokyo.

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