The Bear Stearns Companies Inc.Samuel L. Molinaro Jr.Chief Operating Officer & Chief Financial Officer

Credit Suisse Financial Serv ices Forum

February 8, 2008

2

Fundamental strength and revenue generating capacity of the franchise remains intactReduced risk and balance sheetEnhanced liquidity profileExpense discipline remains intactContinue to invest to optimize growth potential and diversification

Strategic Focus: Continue to Grow and Diversify the FranchiseStrategic Focus: Continue to Grow and Diversify the Franchise

3

International net revenues were over 25% of firm-wide net revenues versus less than 15% in 2006Equity oriented businesses reported record revenues

− Institutional Equities, Global Clearing Services, and Private Client Services net revenues up > 10%

−Full year records in International Equities, Equity Derivatives and Prime Brokerage

Weakness largely confined to Fixed Income−Mortgages / complex structured securities were very high profile areas of stress−Credit Trading was off from a record year in 2006−Rates and FX had a strong year

Fourth quarter loss is disappointing─Only loss quarter in the Firm’s history as a public company (22 years)

Significant expense rationalization in progress

Fiscal Year 2007 Performance PointsFiscal Year 2007 Performance Points

4

Bear Stearns Has a Record of Delivering Long Term Performance GrowthBear Stearns Has a Record of Delivering Long Term Performance Growth

$143 $295 $362 $387 $241 $491 $613 $660 $673 $773 $619 $878 $1,156 $1,345 $1,462$2,054

$233

$1,239$1,844

$2,143$2,417

$2,075

$2,983$3,526

$4,341 $4,502

$5,476$4,907

$5,994

$6,813$7,411

$8,690

$0

$2,500

$5,000

$7,500

$10,000

1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

Net Income Net Revenue

(1 )

Net Revenues and Net Income

Mill

ions

Note: 1990-1998 years ended June 30.[1] Excludes $2.3 billion in net inventory write-downs on mortgage-related assets, valuation adjustments of $260 million related to leverage finance activity and investment and fee write-

downs related to the BSAM high-grade funds of $170 million.

$5,945

CAGR 1996 - 2006 2001 - 2006

Net Revenues 11% 13%Net Income 15% 27%

$5,128

$9,227

5

Tale of Two HalvesTale of Two HalvesSecond Half 2007 – Very Difficult Operating EnvironmentTwo Key Performance Issues – CDOs & Mortgage Hedges

Bear Stearns franchise remains solid1H07 2H07 %

Net Revenues ($M) 4,994 952 -81%

Pre-Tax Income ($M) 1,606 (1,196) -174%

Net Income ($M) 1,040 (683) -166%

EPS 7.22 (4.81) -167%

Pre-tax Margin 32.2% n/m n/m

Income statement data presented on an operating basis , which excludes the effec t of the $227.5MM pre-tax non-cash charge related to the writedown of goodwill in relation to Bear Wagner Spec ialis ts in 2Q07.

6

$0

$1

$2

$3

$4

$5

International Global Equities Inv Banking Wealth Mgmt Fixed Income

2005 2006 2007

Strong Performance Across the Franchise Away from Fixed IncomeStrong Performance Across the Franchise Away from Fixed Income

Net Revenue Trends (2005-2007)B

illio

ns

[1] International net revenues shown on a location basis, [2] excludes merchant banking related revenues, [3] excludes investment and fee write-downs related to the BSAM high-grade funds, [4] excludes net inventory write-downs on mortgage-related assets, and valuation adjustments related to leverage finance activity.

[1]

[3]

[4]

60%

36%

27%47%

-1%

[2]

7

Prudent Balance Sheet ManagementPrudent Balance Sheet Management

Balance sheet reduced to $395 billion at 4Q07 from $423 billion at 2Q07Capital position is strongBalance sheet liquidity substantially improved

Reduction in higher risk asset categories such as leveraged finance and subprime / CDOs

Retained interests declined 17% to $8.0 billion at year end from $9.6 billion at 3Q07−Non-Investment Grade retained interests decreased to $1.3 billion

8

$6.9

$8.0

$9. 0

$10.8

$12.1

$11.8

$0

$25

$50

$75

$100

2002 2003 2004 2005 2006 2007

Equity

Long-term D ebt

Billio

ns

Long-term Debt and Equity

A Strong and Growing Capital BaseA Strong and Growing Capital Base

CAGR 21%

[1] Includes announced $1 billion CITIC investment in trust preferred securities

$81.3

$30.6

[1]

$66.7

9

Represents funding for assets away from traditional Fixed Income repo activityFunding Mix Shifts to SecuredFunding Mix Shifts to Secured

Current Mix is 84% Secured / 16% Unsecured

($ in millions)November 30, 2007 May 31, 2007 November 30, 2006 y-o-y

%Domestic Repo (1) 24,916 16,650 3,300 655%Foreign Repo (1) 2,974 2,802 816 264%Bank Loans - Secured 5,104 1,934 1,386 268%

Subtotal Secured 32,994 21,386 5,502 500%

Bank Loans - Unsecured 3,126 331 1,664 88%CP & Short MTNs 5,774 12,846 21,028 -73%Other Unsecured 1,311 1,243 1,535 -15%

Subtotal Unsecured (2) 10,211 14,420 24,227 -58%

Total Secured & Unsecured 43,205 35,806 29,729 45%

Secured 76% 60% 19%

Unsecured 24% 40% 81%

(1) Consist ing primarily of Equity and Corporate Securi ties

(2) Excludes unsecured let ters of credit

10

Initiated change in funding framework in September 2006Goal to fund virtually all inventory either in secured markets or with cash capitalReduced reliance on unsecured short-term funding

− Commercial paper outstanding was $3.9B at 2007 year end

Significantly increased use of secured term fundingMaterially increased Parent Company Liquidity Pool (PCLP)

− $17.4B at 2007 year end

Liquidity Profile is EnhancedLiquidity Profile is Enhanced

-

5,000

10,000

15,000

20,000

25,000

4Q06 1Q07 2Q07 3Q07 4Q07

$ in

mill

ions

CP & Unsecured Bank Loans

PCO Cash Liquidity Pool

11

$2,072$755Total ABS CDO-Related Exposures$944$0Total CDO Warehouse

$1,128$755Total ABS CDO Exposure

$165-$10TOTAL Below-AAA Exposure$963$765TOTAL AAA - Super Senior Exposure

$19$1CDO^2 Collateral$778$597Mezz Collateral$166$167High - Grade Collateral

AUG 31 2007NOV 30 2007($ millions)AAA - Super Senior Exposure:

$1,119-$582Total US Subprime Mortgage Exposure-$1,711-$2,351ABS CDS

$313$211Non-IG Subprime Securities$1,245$1,062IG Subprime Securities

$1,272$496US Subprime Mortgage Exposure Subprime Whole Loans

Note: May not add due to rounding.

CDO and Sub-prime Risk Exposures have been Significantly ReducedCDO and Sub-prime Risk Exposures have been Significantly Reduced

12

Level III AssetsLevel III Assets

August 31, 2007$20.3 billion

November 30, 2007$28.2 billion

Residential $5.8

Distressed $2 .5

Lev. Loans $3 .1

Commercial $4.5

Alt. Inv. $2.4

D erivatives $2.0 CDOs, $1.7

Residential $7.5

Commercial $9.5

D istressed $2.1

Lev. Loans $2.7 Derivatives $2.3

Alt. Inv. $2.4

13

$0.5

$7.6

$20.8

2Q07 3Q 07 4Q 07

Billio

ns

Contingent Commitments

Leveraged Finance Pipeline has been Significantly ReducedLeveraged Finance Pipeline has been Significantly Reduced

14

Commercial MortgagesCommercial MortgagesYear-end 2007 commercial whole loan inventory was approximately $15 billion

− $12 billion in floating rate− $3 billion in fixed rate

Hospitality57%

Office20%

Retail6%

Other17%

US69%

Europe17%

Asia14%

Location2Property Type1

Note: Property Type, Location and WALTV all as of January 16, 2008 [1] Property type excludes credit facilities [2] Location analysis excludes Hilton transaction

WA LTV = 70%

15

Risk Policy Committee

Executive Committee

Principal ActivitiesCommittee

Credit Policy Committee

Bear EnergyCommittee

Trading Risk Committee

Division-level RiskCommittees

Enhanced Risk Management StructureEnhanced Risk Management Structure

Senior level risk committee, headed by Chief Risk Officer governs all credit and market risks including risk appetite, policies, setting limits and strategic risk assessmentMaintains active dialog with all businesses throughout the firm Reports directly to CFOCEO is intimately engaged in the risk management processMaintain traditional risk culture, enhance risk management oversight

16

Strategic ObjectivesStrategic Objectives

Improve geographic diversification− Europe−Asia− Latin America

Expand global client baseIncrease wallet share with key client segmentsDiversify product capabilities and revenuesExpand high Return-on-Equity businesses

17

Global Equities DivisionGlobal Equities Division

Record net revenues in 2007Merger of cash, derivative and clearance businesses

Leverage a larger and highly regarded sales force International expansion of prime brokerage servicesLeading research providerRecord International institutional equities net revenues, 36% of firm institutional equity revenuesRecord Global Clearing Services net revenues

$0

$1,000

$2,000

$3,000

$4,000

2003 2004 2005 2006 2007

Global Clearing ServicesInstutional Equities

Capitalizing on the strength of existing businesses and the scale of a global platform

CAGR = 19%

Net Revenues

Mill

ions

18

Global Equity Division – Industry RecognitionGlobal Equity Division – Industry Recognition

722StarMine Analyst Award

321*Alpha - All America Research T eam (Hedge Funds onl y)

--1Green wich Qualit y Index - Best Sales Professional Support

--1Green wich Qualit y Index - Most Inten sive Service

442Institutional Investor - All America Research Team

200520062007Equity Research

3Global Custodian - Prime Brokerage Survey - Overall

1Global Custodian - Prime Brokerage Survey - Fin ancing

3Global Custodian - Prime Brokerage Survey - Reporting

3Global Custodian - Prime Brokerage Survey - T echnolog y

1Lipper HedgeW orld - Prime Broker b y Assets of US Funds

2Lipper HedgeW orld - Prime Broker for al l Funds

2007Prime Broker / Clearing

1Alpha - Trading Expertise - Hedge Funds (AUM>$5B)

1Alpha - Traditional Execution - Hedge Funds (AUM>$5B)

2Alpha - Trading Expertise and Market Kno wledge

2007Trading

1Alpha - Algorithmic Trading - Hedge Funds (AUM $500M-$1B)

3Alpha - Electronic Trading/DMA - HF(AUM $1B-$5B)

2007Electronic/Algorithmic Trading

121Institutional Investor - All America Best Sales Force

200520062007Sales

* - reflects r ank through day 2 of voting

19

Building a Multi-faceted Energy FranchiseBuilding a Multi-faceted Energy Franchise

Merchant Business− Transacting in natural gas, electricity, coal, emissions and derivatives−North America and Europe−Clients include natural players, hedge funds and financial sponsors

Principal Business−Arroyo Energy Investors

• Since inception has generated over $150 million in net revenues

Trading natural gas and power in every U.S. marketWilliams transaction benefits every area of our energy franchise−Approximately $500 million purchase price− Purchased portfolio of 6 physical power plant tolls and power contracts

covering 7,500 Mw of gas fired capacity

20

Fixed Income Net RevenuesFixed Income Net Revenues

$1.91

$2.91$3.15 $3.29

$0.69

$4.19

$3.25

$0. 0

$1. 0

$2. 0

$3. 0

$4. 0

$5. 0

$6. 0

2002 2003 2004 2005 2006 2007

[1]

Bill

ions

$3.1 billion average net revenues from 2002 to 20071

(1) Excludes $2.3 billion in net inventory write-downs on mortgage-related assets and valuation adjustments of $260 million related to leverage finance activity

21

Core Fixed Income Earnings Capacity Remains Strong and DiversifiedCore Fixed Income Earnings Capacity Remains Strong and Diversified

Mortgage − Diversified mortgage platform− Significant distressed franchise− Secondary trading opportunities

Credit − Capitalizing on secular growth of credit

products− Strong distressed debt business− Leveraged finance commitments contained,

capabilities intactInterest Rates

− Development of global interest rate, foreign exchange and futures businesses

− Emerging markets effort restructured and expanded

International − Building sales capabilities and product

development

E M C /M A X14%

M B S14%

O the r11%

R a te s19%

F I S a les2 0%

C redi t2 2%

Net Revenues 2007

[1] Excludes net inventory write-downs of $2.35 billion on mortgage-related assets [2] excludes valuation adjustments of $260 million related to leverage finance activity.

[1]

[2]

22

Investment Banking - Strategic Investments Plant Seeds that Continue to GrowInvestment Banking - Strategic Investments Plant Seeds that Continue to GrowCore investment banking net revenues have grown at a 10% compounded annual rate since 2003Balanced portfolio of large- and mid-cap corporate clients as well as financial sponsors

− Strategic dialogue increasing− Financial Sponsor wallet share

increased and better positionedAdding local coverage to extend industry expertise internationallyMerchant banking delivers significant fees and principal gains across cycles

$0

$500

$1,000

$1,500

2003 2004 2005 2006 2007

Merchant Banking

Underwriting & Advisory

Net Revenues

Mill

ions

23

Wealth Management Wealth Management

Private Client Services− Record net revenues in 2007− Among the highest producing brokers

in the industry− Increasing share of revenues from fee

based assetsAsset Management

− Reshaping the franchise• Identifying successful

products and strategies• Exiting non-core funds • Focus on new product

development • Expanding geographically

− Risk Management • Integrated with firm

$0

$250

$500

$750

$1,000

$1,250

2003 2004 2005 2006 2007

Asset ManagementPrivate Client Services

CAGR = 18%

Net Revenues

Mill

ions

[1] includes $170 million in write-downs related to the BSAM high-grade funds

$392

24

$50 $79 $101$169

$219

$379

$442 $453

$522

$602

$0

$100

$200

$300

$400

$500

$600

$700

2003 2004 2005 2006 2007

Fee Revenue

Private Client Results Reflect Increased Efficiency and Higher Recurring RevenuesPrivate Client Results Reflect Increased Efficiency and Higher Recurring Revenues

Mill

ions

Net Revenues

# of Brokers: 499 473 505 501 498

25

Asset Management Building on Successful Products for Profitability and GrowthAsset Management Building on Successful Products for Profitability and Growth

$0

$10

$20

$30

$40

$50

$60

2003 2004 2005 2006 2007

Traditional Equity Fixed Income/CashHedge Funds Private EquityMerchant Banking StratisPCS Broker Managed

Assets Under Management

Bill

ions

$133

$398

$0

$125

$250

$375

$500

2003 2004 2005 2006 2007

(1)

Net Revenues

Mill

ions

(1) Includes $170 million in write-downs related to the BSAM high-grade funds.

$44.6

26

Significant International Growth OpportunitySignificant International Growth Opportunity

Four consecutive years of record revenuesExpanding global equity franchise

− Derivatives− Research− Sales & Trading− Prime Brokerage

Expanding global fixed income franchise

− Credit− Rates− Mortgages

New offices in 2007− Paris and Frankfurt

International Net Revenues1

$0

$2 50

$5 00

$7 50

$1,0 00

$1,2 50

$1,5 00

$1,7 50

2002 2003 2004 2005 2006 2007

Mill

ions CAGR = 34%

[1] International net revenues shown on a location basis

27

Bear Stearns and CITIC SecuritiesBear Stearns and CITIC Securities

Three Components to the transaction−Close collaboration in China for new capital markets businesses−Exclusive ex-China, Hong Kong-based, joint venture −$1 billion cross-investments

Benefits to Bear Stearns:−Touches every business−Transformational for Asia business, accelerates our already

rapid growth −Clients gain access to China and pan-Asian investment

opportunities−Development of capital markets business−People, systems and relationships

28

Continue to Manage with Long-term FocusContinue to Manage with Long-term Focus

Market environment likely to remain challenging in the near termGlobal Equities Division continues to see favorable opportunitiesDiversification of fixed income benefits rates and credits Distressed MBS opportunity will be availableContinue to focus on strategic prioritiesManage costs aggressively−Cost right-sized to revenue environment

Manage balance sheet prudently

29

Certain statements contained in this discussion are “forward-looking statements”within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are subject to risks and uncertainties, which could cause actual results to differ materially from those forward-looking statements. Numerous factors may affect our business, including but not limited to interest rates, market conditions, transactions included in our backlog failing to close, general economic conditions in the US or other geographic regions that may suffer economic downturns. For a fullerdiscussion of these risks see “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and “Risk Management” in the Company’s Annual Report to Stockholders, which has been filed with the Securities and Exchange Commission.

The information in this document is provided by Bear Stearns for informational purposes only, and should be considered current only as of the date of its initial publication, without regard to the date on which you may actually review the information.

The Bear Stearns Companies Inc.Samuel L. Molinaro Jr.Chief Operating Officer & Chief Financial Officer

Credit Suisse Financial Serv ices Forum

February 8, 2008