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Bear Stearns Announces the Start of Trading of the First Actively Managed Exchange Traded Fund

Bear Stearns Asset Management (BSAM) announced that the Bear Stearns Current Yield Fund (AMEX: YYY), the first actively managed exchange traded fund (ETF), will begin trading on the American Stock Exchange today.

YYY, or Triple-Y, is composed of a variety of short-term fixed income instruments. The Fund aims to generate higher returns than a money market fund by investing in diversified, high-quality securities, including government securities, municipal securities, bank obligations, corporate and securitized debt. Triple-Y Shares can be purchased and sold intraday, with pricing every 15 seconds on the exchange and portfolio holdings fully disclosed each day via BSAMs website

We are excited to introduce the first actively managed ETF to the market, said Jeff Lane, Chairman and CEO of Bear Stearns Asset Management. The Bear Stearns Current Yield Fund is an innovative product that provides investors with unprecedented price discovery and transparency.

Triple-Y is managed by a team of fixed income professionals at BSAM, led by senior portfolio manager Scott Pavlak. Mr. Pavlak has more than 20 years of investment experience and has been managing portfolios with a similar investment process to Triple-Y for over 15 years.

Mr. Pavlak added, Our approach is to maximize income for our investors, while preserving capital. The Fund employs a disciplined investment strategy, adding value through sector allocation, security selection, yield curve positioning, and duration management.

The Current Yield Fund is the first product launched by the Bear Stearns Active ETF Trust. Subject to Bear Stearns shareholder and regulator approval and following the completion of the proposed acquisition between Bear Stearns, the parent company of Bear Stearns Asset Management, and JPMorgan Chase, the Current Yield Fund would be expected to be re-branded under JPMorgan.

About Bear Stearns Asset Management Inc.

Bear Stearns Asset Management Inc. (BSAM®) is a wholly-owned subsidiary of The Bear Stearns Companies Inc. (NYSE: BSC). BSAM is a solutions-based provider of asset management and advisory services. Serving institutional and high-net-worth investors around the world, BSAM offers a broad portfolio of investment opportunities. These include carefully-selected strategies in equity, fixed income, hedge funds, and private equity.

The Bear Stearns Current Yield Fund (YYYSM or the Fund) is a series of the Bear Stearns Active ETF Trust (the Trust) and is an actively managed exchange traded fund (ETF). The Trust is registered with the Securities and Exchange Commission as an investment company under the Investment Company Act of 1940, as amended. Bear Stearns Asset Management Inc. (BSAM), a wholly owned subsidiary of The Bear Stearns Companies Inc., serves as the investment adviser to the Fund.

Investing involves risk, including potential loss of principal.Investing in fixed income instruments involves special risks, such as interest rate, credit and inflation risk. The Fund will invest in instruments that may be sensitive to small changes in interest rates and thus the Funds net asset value may be volatile. Accordingly, the Fund may not be suitable for all investors.

The Fund is not a money market fund, and thus does not seek to maintain any target share price. There is no market history for actively managed exchange traded funds; as a result, there is no way to know how the Fund will perform. Unlike typical exchange traded funds, the Fund does not attempt to track or replicate any index.The ability of the Fund to achieve its objectives will depend on the effectiveness of the Funds portfolio management team.

YYY shares are bought and sold at market price and are not individually redeemable from the Fund. YYY shares are listed on the American Stock Exchange (AMEX) under the ticker symbol YYY. Individual investors can invest in the Fund by purchasing YYY shares through a brokerage account. Normal brokerage commissions will apply, and can reduce returns.

Although not individually redeemable, special large institutional shareholders can acquire and redeem YYY shares directly from the Fund in aggregated Creation Units (50,000 share minimum). Only large institutional investors that enter into an agreement with the Funds distributor can purchase or redeem Creation Units directly from the Fund. These large institutional investors are expected to break up Creation Units and sell individual YYY shares in the secondary market. YYY shares may trade in the secondary market below, at or above their net asset value.

There is no guarantee that a secondary market in YYY shares will develop.

Consider the investment objective, risks, charges and expenses of the Fund carefully before investing. You may obtain a prospectus which contains this and other information at or by calling toll-free (866) YYY-9160 or (866) 999-9160. Read the prospectus carefully before investing.

Buying and selling YYY shares may generate taxable gains and losses. The information contained herein should not be construed as tax advice. Investors should consult an independent tax adviser.


American Stock Exchange® and AMEX® are registered service/trademarks of the American Stock Exchange LLC. AMEX has licensed intellectual property used by the Trust and the Fund to BSAM and the Trust.

Bear Stearns® and BSAM® are registered trademarks of The Bear Stearns Companies Inc. ALPS Distributors, Inc. is the Distributor for the Trust, and is not affiliated with BSAM. All product names and logos contained herein are the trademarks or registered trademarks of their respective owners.

© 2008 Bear Stearns Asset Management Inc. All rights reserved.


Bear Stearns
Jane Slater, 212-272-3933

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