CARNEGIE BANK EXPANDS TO MONTGOMERY.

PRINCETON, N.J.--Aug. 8, 1995--(BUSINESS WIRE)--CARNEGIE BANK, N.A. (NASDAQ/NMS: CBNJ, CBNJW) has received approval to establish a branch office at One Airport Place, Route 206 North, Montgomery Township, Somerset County, New Jersey. CARNEGIE BANK's sixth location, the office expects to be in operation by October. The new branch office will be approximately five miles north of its headquarters branch in West Windsor. The branch will enhance the ability of CARNEGIE BANK to service its existing customer base throughout the Princeton area as well as to service new customers who find it inconvenient to travel through the town of Princeton to reach the headquarters branch.

The bank has leased a 2,000 square foot office which will be designed to accommodate customers' comfort and privacy in conducting their banking. CARNEGIE BANK will employ a seasoned commercial lender with experience in this area who will identify established local business people to participate on the Montgomery business development board. In addition, the bank will add a branch manager, assistant branch manager, customer service representatives and tellers to complete its staff.

CARNEGIE BANK selected Montgomery for the site of its expansion because the area demographics are very well suited to CARNEGIE BANK's niche of meeting the financial demands of professionals and small businesses. There is a large, diverse professional community of individuals and businesses growing rapidly in this area. Based on the way CARNEGIE BANK approaches lending at the local level, the bank believes this will present a competitive advantage for them. Application is presently being made to the Montgomery Township Planning Board for approval to provide access to the office complex surrounding the site.

CARNEGIE BANK, N.A., a national bank headquartered in Princeton, New Jersey, is the single subsidiary of CARNEGIE BANCORP. CARNEGIE BANK has four branches located in Princeton, Hamilton, Marlton and Denville, New Jersey, with a fifth branch opening next month in Toms River.

CONTACT: THOMAS L. GRAY, JR. [phone]

LEONARDO G. ZANGANI [phone]