Bay View changes name to mark new direction, progress.

SAN MATEO, Calif.--(BUSINESS WIRE)--April 11, 1997--Marking its transition from a traditional savings institution to a community bank, Bay View Federal Bank has changed its name to Bay View Bank effective immediately.

"We feel the name better reflects our 85-year history of serving the Bay Area as well as our evolution into a full-service community bank," explained Edward H. Sondker, president and chief executive officer. "Our new name clearly shows our commitment to focus on the Bay Area communities and customers we serve."

Bay View Bank operates 27 full-service community banking centers in eight Bay Area counties: Alameda, Contra Costa, Marin, San Francisco, San Mateo, Santa Clara(a), Solano and Sonoma.

The bank is part of Bay View Capital Corporation, a diversified financial services holding company with assets of $3 billion. In conjunction with the bank's name change, the holding company will change its Nasdaq stock symbol to "BVCC" from "BVFS" effective May 1, 1997.

The bank's name change follows dramatic financial improvement at the holding company. At year-end 1996 Bay View reported its best results ever in terms of core operating earnings. Core earnings per share in 1996 were $2.55 compared to $.91 per share in 1995. Other financial achievements in 1996 were: first increase ever in annual common stock dividend to $.64 from $.60, market value increase to $280 from $200 million, and a 49% increase in stock price to a record $42.375 as of December 31, 1996.

These financial accomplishments were the result of a turnaround begun in 1995 by Sondker and a new management team. Turnaround activities included restructuring and stabilizing the company's balance sheet, prepaying debt, selling the corporate headquarters building, redeploying excess capital by making strategic acquisitions, and reducing administrative expenses.

"We are well-positioned for growth and profitability," said Sondker. "We expect 1997 to be a productive and successful year, and look forward to building our banking business under the Bay View Bank name."

Founded in 1911 as Bay View Building & Loan Association, the bank changed its name in 1935 to Bay View Federal Savings & Loan Association and then to Bay View Federal Bank in 1990.

The new Bay View Bank name will begin appearing next week on in-branch signage and in bank advertising. A complete building signage changeover to the new name is expected to be completed at all branches in the near future. -0-

Note (a): banking center at 54 West Santa Clara Street, San Jose, will open May 1997.

CONTACT: Bay View Bank

Jan Schlesinger, 415/312-7454

or

The Montgomery Group

Steve Pisinski or John Haering, 415/391-3040