Cornerstone Bancorp, Inc. Reports Earnings.

STAMFORD, Conn.--(BUSINESS WIRE)--April 23, 1999--

Cornerstone Bancorp (the "Bancorp"), reports net income of $322,000 for the three month period ended March 31, 1999 compared to net income of $357,000 for 1998. Basic earnings per share outstanding was $0.29 for the quarter ended March 31, 1999 and $0.32 for the quarter ended March 31, 1998 based on weighted average shares outstanding of 1,123,000 and 1,114,000 for the quarter ended March 31, 1999 and 1998, respectively. Diluted earnings per share were $0.28 for the quarter ended March 31, 1999 and $0.31 for quarter ended March 31, 1998 based on weighted average shares outstanding of 1,164,000 and 1,156,000, for the quarter ended March 31, 1999 and 1998, respectively.

Net interest income (interest income less interest expense) decreased by $67,000 or 4.4% to $1,472,000 from $1,539,000 for the previous year's first quarter. The decrease in net income is directly related to the decrease in total loans year to year. In addition, a 75 basis point drop in the prime rate also affected earnings. The Bancorp's net interest margin decreased to 4.61% from 5.41% a year ago. Nonperforming assets to total loans at March 31, 1999 decreased to 2.00% from 3.86% at March 31, 1998, due primarily to one nonperforming loan which was resolved during the second quarter of 1998.

During the first quarter of 1999, the Bancorp's Board of Directors declared a cash dividend of $.06 per share to shareholders of record as of March 31, 1999 payable April 15, 1999. An additional bonus dividend of $.18 per share was also declared by the Board payable on February 19, 1999 to shareholders of record February 8, 1999.

In Connecticut, Cornerstone Bancorp, through its subsidiary Cornerstone Bank, operates from four full service locations in Stamford, one full service location in Greenwich and a limited service mobile branch. It is anticipated that a new full service location will be opening in Norwalk on or about May 10, 1999. The Bancorp's common stock is traded on the American Stock Exchange under the symbol CBN.

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                                    Three months ended March 31,
                                     1999                  1998
                                     ----                  ----

     Total Interest Income         $2,369,000          $2,407,000
     Net Interest Income            1,472,000           1,539,000
     Net Income                       322,000             357,000
     Diluted Earnings Per Share          0.28                0.31
     Basic Earnings Per Share            0.29                0.32

Safe Harbor Statement under Private Securities Litigation Reform Act of 1995: Except for historical information, the matters discussed in this news release that may be considered forward-looking statements may be subject to certain risks and uncertainties that could cause the actual results to differ materially from those projected, including uncertainties in the market, pricing competition, procurement, efficiencies and other risks detailed from time to time in the Company's financial statements and other factors discussed in the Company's securities filings with the Securities and Exchange Commission. The Company assumes no obligation to update the information in this news release.