NEW YORK, NY - November 1, 2006 - Arroyo Energy, LP, a unit of The Bear Stearns Companies Inc. [NYSE:BSC] announced today that it has agreed to acquire Morristown, NJ based Delta Power Company, LLC, a privately-held owner and manager of power generation projects. 

Included in the sale are interests in 19 power projects, with a total of 1380 gross MW. Further terms of the transaction were not disclosed.  The transaction is expected to close at year-end, subject to regulatory approvals.

"We believe that this is a positive transaction for Delta," said Dean Vanech, Chief Executive Officer, Delta Power Company.  "In working with Arroyo, it was clear that this was a good fit."

"Since our founding, we have strived to identify quality energy assets," said David T. Field, Co-President of Arroyo Energy Investors. "The Delta portfolio exemplifies the opportunity set that we look for in an investment."

About Delta Power Company:
Formed in 1997, Delta is a leading mid-sized owner, developer and manager of electric power projects throughout the United States, including California, New Mexico, Texas, Florida, Massachusetts, New York, Michigan and Maine.  Delta’s portfolio primarily consists of natural gas fired projects in addition to one coal fired project, all which sell electricity to utilities on a wholesale basis.  Certain power plants are excluded from the sale to Arroyo Energy Investors, as well as Delta Power Services, LLC, Delta’s plant operating subsidiary. 

About Arroyo Energy Investors:
Arroyo Energy Investors LP, a wholly-owned subsidiary of The Bear Stearns Companies Inc., makes principal investments in energy-related assets. Located in Houston, Texas, Arroyo’s specialized expertise in energy M&A—combined with Bear Stearns’ world-class investment platform—offers distinct advantages to companies seeking successful transactions. More information about Arroyo Energy is available at www.arroyoenergy.com.