Bear Stearns Merchant Banking Selects Demeter Group as Advisor in Food

    Business Editors

    NEW YORK--(BUSINESS WIRE)--April 21, 2005--Bear Stearns Merchant Banking ("BSMB"), a private equity fund, announced today that it has formed an affiliation with Demeter Financial Group LLC ("Demeter Group"), an investment bank and corporate development advisory firm focused exclusively on consumer companies with a specialization in the food and beverage industry. Demeter Group will serve as BSMB's strategic and financial advisor in pursuing private equity investment opportunities in the food and beverage sector. Investments will be funded from BSMB's existing $1.5 billion fund.
    BSMB and Demeter Group will work together to identify strategic opportunities within the food and beverage sector, building on BSMB's recent investments in Balducci's, Vitamin Shoppe and Reddy Ice. These companies complement BSMB's portfolio of consumer and retail investments, which also includes Seven for All Mankind, CamelBak, Aeropostale and Bally Group.
    "Demeter Group's strong experience and depth of knowledge in branded food & beverage is a perfect fit with our consumer sector interests," commented David E. King, Senior Managing Director and Executive Vice President of BSMB. "We are particularly interested in opportunities to invest in consumer brands that have the potential to be taken to the next level of size and performance with the right set of resources and management. Demeter's keen understanding of what drives brand value will strategically enhance these investment decisions."
    Demeter Group will identify market segments and platform companies where BSMB can mobilize $50 million to $150 million in equity capital to help accelerate the growth and profitability of strong consumer brands. In this role, Demeter Group will also identify potential management, directors or co-investors to participate in transactions as appropriate.

    About Bear Stearns Merchant Banking:

    Bear Stearns Merchant Banking, the private equity affiliate of Bear, Stearns & Co. Inc., (NYSE: BSC) invests private equity capital in compelling leveraged buyouts, recapitalizations and growth capital opportunities alongside superior management teams. Bear Stearns Merchant Banking is currently investing its $1.5 billion institutional private equity fund. Since its inception in 1997, Bear Stearns Merchant Banking has been an investor in over 35 portfolio companies across a broad range of industries. Recent investments by Bear Stearns Merchant Banking include ACA Capital Holdings, Aearo Corporation, CamelBak Products, Cavalry Investments, Hand Innovations, New York & Company, Reddy Ice, Balducci's and Vitamin Shoppe. More information about Bear Stearns Merchant Banking can be found at www.bsmb.com.

    About Demeter Group:

    Demeter Group is an investment bank and corporate development advisory firm for consumer companies, principally in the food & beverage industry. For more information, visit www.demetergroup.net.

--30--NM/ny*

CONTACT: For BSMB: Brunswick Group Steve Lipin or Melissa Daly, 212-333-3810 or Demeter Group Jeff Menashe, 650-324-2678

KEYWORD: NEW YORK INDUSTRY KEYWORD: BANKING FOODS/BEVERAGES RETAIL MARKETING AGREEMENTS SOURCE: Bear Stearns Merchant Banking

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