Bear Stearns Companies
Industry: Investment Services

Bear, Stearns & Co. Inc. is a leading worldwide investment banking and securities trading & brokerage firm, and the major subsidiary of The Bear Stearns Companies Inc. (NYSE:BSC). With approximately $31.1 billion in total capital, Bear Stearns serves governments, corporations, institutions & individuals worldwide. The company's business includes corporate finance & mergers and acquisitions, institutional equities & fixed income sales, trading and research, private client services, derivatives, foreign exchange and futures sales and trading, asset management and custody services. Through Bear, Stearns Securities Corp., it offers prime broker and broker dealer services, including securities lending. Headquartered in New York City, the company has approximately 10,500 employees worldwide.

Business Summary
The Bear Stearns Companies Inc. is an investment banking, securities and derivatives trading and clearance and brokerage firm that serves corporations, governments and institutional and individual investors worldwide. It conducts its business through its broker-dealer subsidiaries and international bank subsidiaries, principally Bear, Stearns & Co. Inc. (Bear Stearns); Bear, Stearns Securities Corp. (BSSC); Bear, Stearns International Limited (BSIL), and Bear Stearns Bank plc (BSB). The Company also conducts activities through other wholly owned subsidiaries, including Bear Stearns Global Lending Limited, Custodial Trust Company, Bear Stearns Financial Products Inc., Bear Stearns Capital Markets Inc., Bear Stearns Credit Products Inc., Bear Stearns Forex Inc., EMC Mortgage Corporation and Bear Stearns Commercial Mortgage, Inc. The Company is primarily engaged in three principal segments: Capital Markets, Global Clearing Services and Wealth Management.

Financial Summary
For the nine months ended 31 August 2005, The Bear Stearns Companies Inc.'s revenues increased 39% to $8.37B. Net income applic. to Common increased 5% to $1.07B. Revenues reflect an increase in institutional commissions due to increased average trading volumes. Net income was partially offset by increased interest expense, higher employee compensation & benefits and increased advertising & market development expenses.