Community Partners Bancorp Reports Second Quarter Operating Results.

3% Stock Dividend Approved

MIDDLETOWN, N.J. -- On July 20, 2007, Community Partners Bancorp (NASDAQ CM: CPBC) (the "Company"), the parent company of Two River Community Bank and The Town Bank, reported consolidated earnings and asset growth for the second quarter and six months ended June 30, 2007. Additionally, on July 17, 2007, the Company's Board of Directors approved a 3% stock dividend payable August 31, 2007, to shareholders of record as of August 10, 2007. Weighted average shares outstanding and earnings per share for the three and six months ended June 30, 2007 and 2006, have been retroactively adjusted to reflect the stock dividend.

Community Partners reported net income of $1,029,000 for the quarter ended June 30, 2007, or $0.15 per share for both basic and diluted, compared to net income of $1,086,000 for the second quarter of 2006, or $0.16 for both basic and diluted earnings per share. Net income for the quarter ended June 30, 2007, decreased by $57,000 or 5.2% over the same prior year quarter. Barry B. Davall, President and CEO of Community Partners Bancorp, stated, "The decrease in net income resulted from increased non-interest expenses incurred during the first six months of 2007 as we expanded our branch network and increased support staff. These actions were taken in order to position ourselves for future growth." On a linked quarter basis, net income for the second quarter of 2007 increased by $128,000 or 14.2% over the first quarter of 2007.

For the six months ended June 30, 2007, net income increased to $1,930,000 compared to $1,569,000 for the six months ended June 30, 2006. This represents an increase of $361,000 or 23.0% in net income. Basic and diluted earnings per share for the six months ended June 30, 2007 were $0.29 and $0.28, respectively, compared to basic and diluted earnings per share of $0.29 and $0.28, respectively, for the same prior year period. Results of operations were significantly higher during the first six months of 2007 compared to the same prior year period as a result of the growth of the Company and the accretive effects of the acquisition of The Town Bank. Reported earnings of Community Partners Bancorp prior to April 1, 2006 include those of Two River Community Bank and do not include those of The Town Bank.

At June 30, 2007, assets totaled $545.8 million, an increase of $25.3 million, or 4.9%, over December 31, 2006 assets of $520.5 million. The Company's loan portfolio, net of allowances for loan losses, decreased to $408.5 million at June 30, 2007, compared to $412.3 million at December 31, 2006, a decrease of $3.8 million, or 0.9%. Total deposits increased to $457.4 million at June 30, 2007, compared to $441.9 million at December 31, 2006, an increase of $15.5 million, or 3.5%.

Mr. Davall further stated, "The decrease in loan volume reflects our efforts to maintain our high credit standards in a challenging market, while the increase in deposits reflects our branch expansion efforts and strong focus on shifting our mix to a higher level of core deposits which continues to drive our strong net interest margin. I continue to be pleased with our progress as we move forward with our strategic initiative."

Community Partners Bancorp is the holding company for Two River Community Bank, which is headquartered in Middletown, New Jersey, and The Town Bank, which is headquartered in Westfield, New Jersey. Two River Community Bank operates ten branches throughout Monmouth County and The Town Bank operates two branches in Westfield and anticipates additional branches in Fanwood and Cranford, New Jersey in 2007 and 2008. Community Partners Bancorp acquired The Town Bank on April 1, 2006 in a transaction that was accounted for under the purchase accounting method for financial reporting purposes, with Two River Community Bank as the acquiring entity. Community Partners Bancorp was formed in connection with that transaction and had no business operations prior to April 1, 2006.

The foregoing contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are not historical facts and include expressions about management's confidence and strategies and management's expectations about new and existing programs and products, relationships, opportunities, taxation, technology and market conditions. These statements may be identified by such forward-looking terminology as "expect," "look," "believe," "anticipate," "may," "will," or similar statements or variations of such terms. Actual results may differ materially from such forward-looking statements. Factors that may cause results to differ materially from such forward-looking statements include, but are not limited to, changes in interest rates or in national or local economic conditions in areas in which our operations are concentrated, increased competition, rapid growth, reliance on management and other key personnel, failure to achieve sufficient operational integration between Two River Community Bank and The Town Bank, and other such risks. Community Partners Bancorp assumes no obligation for updating any such forward-looking statements at any time.

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