0,5- tt- ta k Circa 6c eel ), BUkER. AD P997 STIDNR NS July 5, 2006 Dear Current Investor Bear Steams High-Grade Structured Credit Strategies Bear Stearns Asset Management Inc. 383 Madison Avenue New York, New York 10179 www.bearsteamv.com Matthew Tannin Senior Managing Director (212)272.3118 Enclosed please find copies of the offering and subscription documents to make an investment in the Bear Steams High-Grade Structured Credit Strategies Enhanced Leverage Fund ("BSHG Enhanced"). As a current investor in the Bear Stearns High-Grade Structured Credit Strategies Fund ("BSHG"), you have the opportunity to allocate a percentage of your current investment in BSHG into BSHG Enhanced. If you do not want to make an allocation no action is necessary. If you are interested in making such an allocation, please read the enclosed offering materials carefully and complete the entire Subscription Agreement for BSHG Enhanced, including designating the percentage of your current investment in BSHG that you would like to allocate or "roll" into BSHG Enhanced. THIS DESIGNATION IS ESSENTIAL TO THE MAKING OF YOUR NEW INVESTMENT IN BSHG ENHANCED. Please return the Subscription document to Bear Steams by no later than the close of business on July 21, 2006. The roll will occur on August I, 2006. Please use fax number 917.849-3018. Your allocation of any portion of your investment in BSHG to BSHG Enhanced will take the form of a redemption in kind from BSHG and a subscription in kind to BSHG Enhanced. Each investor will receive a pro rata interest of each position in the BSHG portfolio as of July 31, 2006. These positions will be used to subscribe to BSHG Enhanced. No action is required of any investor beyond the percentage election in the Subscription document. Each investor will then receive limited partnership interests in the BSHG Enhanced Fund equal to the value of the securities received from the in kind redemption from BSHG. All high water mar