Steven A. Rosso, President and Chief Executive Officer of Pacific State Bancorp, reported that the company saw improvement in most financial ratios during the fourth quarter of 2003 and for the year ending December 31, 2003. Those ratios identified were: Return on Assets for the fourth quarter of 1.25%, Return on Equity for the fourth quarter of 19.41%, Average Net Interest Margin of 5.10%, and an Efficiency Ratio for the quarter of 59.15%. The ratios for the year were as follows: Return on Assets 1.07%, Return on Equity of 16.86%, Average Net Interest Margin of 4.83%, and an Efficiency Ratio for the year of 62.88%.

Mr. Rosso also noted that Pacific State Bancorp experienced moderate growth in Total Assets of $20,618,668, or 11.45,% ending the year at $200,759,152. Rosso also reported that the Bank’s Total Deposits grew to $176,292,207 up by $18,152,200 or 11.48%, Net Loans also grew well, ending the year at $155,484,997, an increase for the year of $21,519,083 or 16.06%, Shareholder’s Equity increased by $2,128,602, or 19.29%, ending 2003 with $13,448,464.

In evaluating the performance of Pacific State Bancorp Rosso stated that increased revenues for 2003 coupled with slowing non-interest expense aided in the Company’s strong net income. Net Interest Income was up by $2,067,349 or 32.90% for 2003 over year end 2002. Non-Interest Income also climbed in 2003 by $339,279, or 20.71%, this was due to improvement in the mortgage fee income. Non-interest expense increased in 2003 to support the Company’s overall growth; the actual increase was $649,159, or 11.10%. In a direct comparison to revenue growth, non-interest expense grew at less than 30% of revenue growth.

Significant non-financial highlights also occurred during 2003 for Pacific State Bancorp and Pacific State Bank including the relocation and grand opening of two new branches: Groveland in the first quarter of 2003 and Angels Camp during the fourth quarter of the year. Pacific State Bank also received accolades from the USDA, Business and Industry Loan Program, when it was named Lender of the Year in 2003. Also receiving notoriety for their involvement in rural lending with the USDA, Business and Industry Loans were Laura Maffei, Senior Vice President and Manager of the Tracy Branch, and Ron Ashwanden, Vice President and Calaveras County Regional Manager. Pacific State Bank was highlighted again in 2003 for its activities in Business and Industry Loan program as the number one lender in the state of California with over $21,000,000 in rural lending. The Bank’s lending efforts with the Business and Industry loans placed it fourth nationally in 2003. Pacific State Bank continues to be a leader in community based lending in Calaveras, San Joaquin, Stanislaus, and Tuolumne Counties operating branches in Angels Camp, Arnold, Groveland, Modesto, Stockton (2), and Tracy.

Forward Looking Statement Disclosure.

Statements made in this release may constitute Forward Looking Statements within the meaning of the Private Securities Litigation Reform Act of 1995 and any such statements are subject to risks and uncertainties that could cause actual results to differ materially. Such risks and uncertainties include those related to the economic environment, particularly in the region where Pacific State Bancorp operates, competitive products and pricing, general interest rate changes and the fiscal and monetary policies of the US Government, credit risk management, regulatory actions, and other risks and uncertainties.

For Further information pertaining to this news release you may contact Jane Armitage at 209-870-3214 or visit the bank’s website at www.pacificstatebank.com.