Press Release

—Will administer $2.5 billion in client fund assets —

BOSTON, April 3, 2007 — Mellon Financial Corporation announced that its Asset Servicing group will administer the middle and back office for the managed accounts business of Bear Stearns Asset Management (BSAM). Among the services that Mellon will provide are account opening and maintenance, transaction support, custodian reconciliation, and investor reporting services. Mellon will also be providing BSAM with an imaging and workflow tool.

"What impressed us most was Mellon's long-term industry commitment as a managed accounts outsourcing provider, and the experience of its industry-focused service team," said Stuart Hendry, managing director of investment operations for BSAM. "We needed a partner that brought the same level of quality and expertise to the back office as we bring to the front. Mellon is that partner."

"Asset managers want to focus on what they do best for clients — making excellent investment decisions," said James P. Palermo, Mellon vice chairman and head of asset servicing. "Outsourcing back office functions is a cost-effective solution that enables money managers to do that successfully. We look forward to enhancing the strong relationship Mellon enjoys with Bear Stearns Asset Management and furthering their efforts to better serve clients." Mellon currently administers approximately 65,000 managed accounts, representing $35 billion in assets.

Bear Stearns Asset Management manages more than $42 billion in assets across a spectrum of active investment disciplines, including a selection of U.S. equity and fixed income separate accounts, hedge and private equity funds, and funds of funds.

Mellon's Asset Servicing group develops solution-oriented tools to support the entire investment process for public and private pension funds, endowments and foundations, asset managers, mutual funds, insurance and other financial institutions.

Mellon Financial Corporation is a global financial services company. Headquartered in Pittsburgh, Mellon is one of the world's leading providers of financial services for institutions, corporations and high net worth individuals, providing asset management, private wealth management, asset servicing, and payment solutions and investor services. Mellon has approximately $5.5 trillion in assets under management, administration or custody, including $995 billion under management. News and other information about Mellon is available at www.mellon.com.

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