American Business Bank Declares Five Percent Stock Dividend.

LOS ANGELES -- American Business Bank (OTCBB:AMBZ) today announced that its board of directors has declared a one-time, five percent stock dividend for shareholders of record on July 5, 2005.

According to Wes Schaefer, vice chairman and chief financial officer of Los Angeles-based American Business Bank, all shareholders in the bank will receive certificates for additional stock in an amount equal to five percent of their current holdings. The special dividend is payable on July 15, 2005.

"At American Business Bank, we recently held our seventh shareholders meeting and our board members felt this was an important way to reward our shareholders for their support," said Schaefer. "We are very proud to have built this bank from scratch to almost $500 million in assets and we have done so while continuing to post strong growth in net earnings for our shareholders."

American Business Bank reported net earnings of $1.15 million for the first quarter of 2005, or $0.56 per share, a 93 percent increase from the same period a year earlier.

Founded in 1998, American Business Bank offers a wide range of financial services to businesses in the middle market. Clients include wholesalers, manufacturers, service businesses, professionals and non-profit organizations. The bank is headquartered in downtown Los Angeles and can be found on the Internet at www.americanbusinessbank.com.