New Issue: Bear Stearns prices $805,000 15.5% notes linked to Research In Motion

By Angela McDaniels

Seattle, Feb. 16 - The Bear Stearns Cos. Inc. priced an $805,000 issue of 15.5% reverse convertible notes due Feb. 20, 2008 linked to the common stock of Research In Motion Ltd., according to a 424B5 filing with the Securities and Exchange Commission.

The payout at maturity will be par unless Research In Motion stock hits the contingent protection level of $110.07 during the life of the notes and finishes below the initial share price of $137.59, in which case the payout will be a number of Research In Motion shares equal to $1,000 divided by the initial share price or, at Bear Stearns' option, par minus the percentage decline in the share price.

Issuer:	The Bear Stearns Cos. Inc.
Issue:	Reverse convertible medium-term notes, series B
Underlying stock:	Research In Motion Ltd.
Amount:	$805,000
Maturity:	Feb. 20, 2008
Coupon:	15.5%, payable semiannually
Price:	Par
Payout at maturity:	If Research In Motion hits the contingent protection level during the life of the notes and finishes below the initial share price, 7.26797 shares of Research In Motion stock or par minus the share price decline, at Bear Stearns' option; otherwise, par
Initial share price:	$137.59
Contingent protection level:	$110.07, 80% of initial share price
Pricing date:	Feb. 14
Settlement date:	Feb. 20
Agent:	Bear, Stearns & Co. Inc.
Fees:	None

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