In making the announcement on behalf of the Bank's Board of Directors, Mr. Rosso indicated that the Board believes that creation of the holding company will enhance the ability of the Bank to compete with major banks in its marketing area, many of which have been similarly reorganized, will provide a broader range of business alternatives with respect to growth and access to additional capital, and, in general, represents a further step toward implementing the Bank's long-range strategic plans.

Pacific State Bank is an independent and locally owned state licensed bank and member of the Federal Reserve System. The Bank's deposits are insured by the Federal Deposit Insurance Corporation.