Bank of the West To Offer New Individual Retirement Plan For Small Business Owners.

Business Editors

SAN FRANCISCO--(BUSINESS WIRE)--Sept. 9, 2003

The Individual (k) Offers Greater Tax-Sheltered Contributions Than

Other Traditional Options

Bank of the West officials announced today the launch of a new Individual (k) retirement plan for small business owners, being offered through the bank's retail investments program, BancWest Investment Services. Bank of the West is unique among Western banks in that it joins the ranks of a limited number of commercial banks offering this new type of business retirement plan. The new plan will be available September 15 and offered through nearly 300 Bank of the West offices in six western states.

Developed by Bank of the West subsidiary Eureka Investment Advisors, the Eureka Advantage Plus Individual (k) plan enables small business owners to take advantage of significantly greater tax-sheltered contributions than other traditional options such as SEP and SIMPLE IRA plans, profit sharing plans and Keoghs.

Based on research conducted by Brightwork Partners, there are over 13 million owner-only businesses currently operating in the U.S. Of this total, it's estimated that over 85% of the business owners in this category have self-employment income as their primary source of income. What's more, Brightwork Partners estimates that there are over 1.7 million owner-only businesses currently sponsoring a traditional business retirement plan such as a defined benefit plan, profit sharing plan, money purchase pension plan, SEP, or SIMPLE-IRA plan. The research firm estimates the mean value of these existing business retirement plans to be $140,000.(a)

Relatively new to the U.S. small business market, the Individual (k) plan emerged in 2002 as a result of new pension rules created through the Economic Growth and Tax Reconciliation Act of 2001. The new rules took effect in January of 2002 and have created an opportunity for many small business owners to contribute more to an Individual (k) plan than any other kind of defined-contribution retirement arrangement.

Frank Bonetto, Vice Chairman of Regional Banking, says the new Eureka Advantage Plus plan is significant in today's competitive retirement plan market. "Up until recently, business owners had few options geared toward saving more than SEPs and SIMPLEs can provide, and who don't want the hassle of cumbersome administrative expenses that come along with some defined contribution plans," Bonetto said.

Bob Bannon, President of Eureka Investment Advisors, says that the Individual (k) differs from conventional business retirement plans used by small business owners by providing significant additional benefits. "Some of the benefits of the Eureka Advantage Plus Individual (k) plan over traditional owner-only business retirement plans include higher contribution limits, funding flexibility, cost effectiveness, access to tax-free loans, distribution flexibility and asset consolidation," said Bannon.

Individual (k) plan advantages include:

-- Higher Contribution Limits - The total contribution limit for

a Eureka Advantage Plus plan is the lesser of 100% of

compensation or $40,000 ($42,000 for individuals age 50 or

older). Also, up to 25 percent of the company's contribution

may be deductible.

-- Access to tax-free Loans - Unlike IRA-based business

retirement plans, federal law permits participants to take

loans from their Eureka Advantage Plus Individual (k).

-- Asset Consolidation - A wide range of preexisting plans can be

rolled or transferred into a Eureka Advantage Plus Individual

(k) plan.

-- Funding Flexibility - Participants can contribute as little or

as much as they desire on an annual basis within maximum

limits. For an individual whose income is cyclical, this can

provide comfort with the ability to better weather difficult

periods.

-- Cost Effectiveness - The plans are not subject to most of the

costly testing requirements that generally apply to

traditional 401 (k) plans.

-- Distribution Flexibility - Allows distributions to be made

prior to retirement age in circumstances such as financial

hardship.

About Bank of the West

With $27 billion in assets, Bank of the West (www.bankofthewest.com) is the third largest commercial bank headquartered in California. Bank of the West currently operates nearly 300 branches in California, Oregon, Washington, Idaho, Nevada and New Mexico.

About Eureka Investment Advisors

A subsidiary of Bank of the West, Eureka Investment Advisors provides investment services for corporate and institutional clients and offers Eureka Funds, a family of proprietary mutual funds.

(a) Brightwork Partners, LLC Perspectives on Small Business, Retirement Services Drill-Down (RSD), Conducted Q2, 2001.