Carnegie Warrants Contribute $10 Million to New Capital.

PRINCETON, NEW JERSEY--(BUSINESS WIRE)--Aug. 27, 1997--CARNEGIE BANCORP (NASDAQ/NNM: CBNJ) announced that it successfully completed the exercise of its outstanding warrants, affirming the confidence placed in the Company by many of its shareholders. The Company had a total of 690,000 warrants outstanding. Carnegie will now enjoy $9.9 million in new capital for future growth and expansion purposes, bringing the total capital to $33.5 million.

The 690,000 warrants were issued during a unit offering in August 1994 at $13.13 per unit. Each unit consisted of a share of common stock and a warrant to purchase an additional share of common stock. Because of the Company's three 5% stock dividends paid in 1995, 1996 and 1997, the effective price per unit was $11.34. This compares favorably with the Company's trading on August 18, 1997, where the NASDAQ National Market System reported Carnegie's common stock closing price at $19.88 and warrant closing price at $8.00, for a combined price of $27.88, a 146% increase over three years. The expiration date for the exercise of warrants was August 18, 1997 and, since that date, the common stock hit an all time high of $21.00 per share.

CARNEGIE BANK, N.A., a national bank headquartered in Princeton, New Jersey, is the single subsidiary of CARNEGIE BANCORP. Carnegie Bank, N.A. serves small businesses, professionals and high net worth individuals through its branch offices located in Princeton, Hamilton, Marlton, Denville, Toms River, Montgomery Township and Flemington, New Jersey and Langhorne, Pennsylvania.

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

JEANNE FERRARI, [phone]