Bay View Capital to Acquire Branches From Luther Burbank Savings.

SAN MATEO, Calif.--(BUSINESS WIRE)--July 8, 1999--

Bay View Capital Corporation ("Bay View") and Luther Burbank Savings today announced a definitive agreement whereby Bay View will acquire Luther Burbank Savings' Mill Valley and Novato, California branches. These two branches represent approximately $125 million in deposits.

Edward H. Sondker, Bay View's President and Chief Executive Officer, commented, "The acquisition of these two branch locations increases Bay View's overall market share in Marin County from tenth to sixth. The acquisition also strengthens our existing presence in Novato with a second location in the downtown area and gives us a new presence in Mill Valley. Following the acquisition, Bay View will have 58 San Francisco Bay area branches and will continue to have the largest deposit franchise of any financial institution exclusively serving the Bay Area."

In accordance with the terms of the definitive agreement, Bay View will pay a 5.25% deposit premium. The transaction is expected to close on September 25, 1999, after which these two branches will operate as Bay View Bank branches.

"This transaction is highly beneficial to the long range plans of both of our institutions," said George Mancini, President and Chief Executive Officer of Luther Burbank Savings. "Our strategy is to open and operate full service offices in several key Bay Area markets. This allows us to keep our Marin presence in San Rafael, and paves the way for us to expand to other areas, including Silicon Valley and the East Bay."

Bay View Capital Corporation is a $5.8 billion diversified financial services holding company headquartered in San Mateo, California. It is the parent company of Bay View Bank, N.A. and its subsidiaries, Bay View Acceptance Corporation and Bay View Commercial Finance Group. Luther Burbank Savings is a $940 million savings bank headquartered in Santa Rosa, California.

Forward-Looking Statements 

When used in this or future press releases, in Bay View's filings with the Securities and Exchange Commission or other public or shareholder communications, or in oral statements made with the approval of an authorized executive officer, the words or phrases "may", "estimates", "anticipates", "would like", "will", "will be", "will enable", "will enhance", "should be able", "should allow", "to be able", "to ensure", "we expect", "we believe", or similar expressions are intended to identify "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Bay View wishes to caution readers not to place undue reliance on any such forward-looking statements, which speak only as of the date made, and to advise readers that various factors, including, but not limited to, regional and national economic conditions; changes in the levels of market interest rates; credit risks associated with real estate, consumer, commercial, and other lending activities; competitive and regulatory factors; changes in accounting principles; changes in the market value of Bay View's common stock; Bay View's inability to sustain or improve the performance of its subsidiaries; Bay View's inability to identify suitable future acquisition candidates; and Bay View's inability to achieve the assumptions as defined in its strategic plans, including any assumptions related to both consummated and contemplated acquisitions, could cause actual results to differ materially from those projected. Bay View does not undertake, and specifically disclaims any obligations, to update any forward-looking statements to reflect occurrences or unanticipated events or circumstances after the date of such statements.