Commerce Bank Announces Loan Program Focused on Minority, Women Entrepreneurs; SBA Approves Commerce as CommunityExpress Lender; Program Connects Borrowers with Capital, Technical Assistance.

EAST PENNSBORO TOWNSHIP, Pa. -- Commerce Bank/Harrisburg, NA, the sole banking subsidiary of Pennsylvania Commerce Bancorp Inc. (NASDAQ:COBH), today announced that the U.S. Small Business Administration has approved the bank's status as a CommunityExpress Lender, enabling it to offer an SBA-guaranteed loan program focused on minority and women entrepreneurs and small businesses in low- and moderate-income areas.

"Access to capital is an obstacle that too many minority and women entrepreneurs experience," said Kelly Neiderer, senior vice president of Commerce Bank's Specialized Banking Group, which focuses on serving women- and minority-owned businesses. "Commerce Bank is taking action to change that. Building on our leadership as an SBA Preferred Lender, Commerce now offers a loan program especially designed for minority and women business owners and small businesses in economically disadvantaged areas. In addition to financing, the program connects borrowers with vital technical assistance to help guide them on a path of success."

Mary Anne Van Arsdale, director of Harrisburg Area Community College's Institute for Entrepreneurial Studies, said, "Commerce Bank's new status as a CommunityExpress Lender is a significant win for women- and minority-owned small businesses in our region. It's initiatives like this that can help bring out the best in entrepreneurship from a more diverse range of people. We are eager to assist Commerce Bank borrowers as they grow small businesses in their communities."

HACC's Institute for Entrepreneurial Studies is home to the college's Business Start-up Center and Women's Marketplace, two of several business counseling resources that Commerce will draw on to provide technical assistance to borrowers. The Business Start-up Center helps minority and women entrepreneurs develop business plans. The Women's Marketplace assists women business owners with free marketing, sales and advertising counseling. Among the other technical assistance resources the program will use are the Harrisburg and York chapters of SCORE and Murata Business Center in Carlisle.

The CommunityExpress loan program is a pilot collaborative effort between the SBA and the National Community Reinvestment Coalition (NCRC) and its member organizations. Under the pilot, designated lenders such as Commerce Bank are authorized to implement a program to increase SBA lending to pre-designated geographic areas generally comprising low- and moderate-income areas and to women, minorities and veterans. Commerce Bank is delegated authority to approve CommunityExpress loans up to $250,000.

Commerce Bank/Harrisburg continues to be a leading lender for the SBA. The bank currently ranks eighth among more than 80 financial institutions for loan originations in the SBA's Philadelphia District, which comprises 40 counties in the eastern half of Pennsylvania.

In addition to its new CommunityExpress Lender status, Commerce is an SBA Preferred Lender and SBAExpress Lender. In 2004, the bank provided more than $5 million in SBA financing.

Commerce Bank/Harrisburg, "America's Most Convenient Bank," opened its first office in Camp Hill, PA, in June of 1985. In the 20 years since, the bank has cultivated a unique retail model that has produced continuous strong growth. The bank has doubled its number of branches in Pennsylvania in recent years, growing a network of 28 stores in Berks, Cumberland, Dauphin, Lebanon and York counties.

Commerce's hallmark products and services include seven-day branch banking, totally free checking, no-fee instant-issue ATM/Visa check card, free interactive Penny Arcade coin-counting machines, free online banking and 24/7 Bank-by-Phone.

In addition to retail banking, Commerce offers a diverse portfolio of commercial banking services including term loans, commercial mortgages, commercial leasing and lines of credit, and cash management services.

Commerce Bank/Harrisburg currently has assets of $1.5 billion. For more information about Commerce Bank/Harrisburg, visit the bank's web site at commercepc.com.

This press release contains forward-looking statements concerning future events. Actual results could differ materially due to the following risks and uncertainties -- deteriorating economic conditions; increased competition; interest rate movements; market volatility in the securities markets; legislative or regulatory developments; merger-related synergies, savings and integration issues; technological changes; and other risks and uncertainties discussed in the company's reports filed from time to time with the Securities and Exchange Commission. The Company cautions readers not to place undue reliance on these statements. The Company undertakes no obligation to publicly release or update any of these statements.