First Coastal Bancshares Reports Mandatory Redemption of Series A 10% Cumulative Convertible Preferred Stock.

Business Editors

EL SEGUNDO, Calif.--(BUSINESS WIRE)--Aug. 1, 2003

On July 18, 2003, the Board of Directors of First Coastal Bancshares (OTCBB: FCSTP), El Segundo, Calif., parent of wholly-owned First Coastal Bank, N.A., approved a mandatory redemption of First Coastal Series A 10% Cumulative Convertible Preferred Stock ("Series A Preferred Stock") at a redemption price of $6.75 per share (plus accrued dividends). First Coastal will redeem all of its outstanding shares (309,789) of Series A Preferred Stock effective September 8, 2003 (the "Redemption Date").

After the Redemption Date, all outstanding shares of the Series A Preferred Stock will no longer be deemed outstanding and all rights with respect to the shares will cease and terminate, except only the right to receive the amount payable on the redemption, without interest.

Until September 1, 2003, holders of First Coastal Series A Preferred Stock will have the right to elect to convert their shares into shares of First Coastal Common Stock instead of having their shares redeemed. After that date, all rights to convert shares of Series A Preferred Stock will terminate. First Coastal Common Stock trades on the OTC Bulletin Board under the symbol "FCST." Based upon the applicable conversion price of the Common Stock of $122.75 (the "Conversion Price"), each share of Series A Preferred Stock is convertible into shares of Common Stock on an approximately one-for-eighteen basis (i.e., 0.0549 shares of Common Stock for each share of Series A Preferred Stock). No fractional Common Stock will be issued upon conversion of shares of the Series A Preferred Stock. First Coastal Bancshares will pay a cash adjustment in an amount equal to the same fraction of the Conversion Price.

For additional information, please contact Harrison Tsai at First Coastal Bancshares, by telephone [phone] extension 4018) or email ([e-mail]).

This press release contains statements which constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 that involve risk and uncertainties. Actual results may differ materially from the results in these forward-looking statements. Factors that might cause such a difference include, among other things, fluctuations in interest rates, changes in economic conditions or governmental regulation, credit quality and other factors discussed in the Company's Annual Report on form 10-KSB for the year ended December 31, 2002.