Texas State Bank Taps Cypress Software for Processing Consumer Loan Requests.

Business Editors/High-Tech Writers

FORT WORTH, Texas--(BUSINESS WIRE)--Aug. 20, 2003

Cypress Software Systems LP has signed a licensing agreement with Texas State Bank, a wholly-owned subsidiary of Texas Regional Bancshares, Inc. (Nasdaq:TRBS) to use Cypress' flagship product, Mark IV, to process the bank's consumer loan applications.

Cypress Software Systems' Mark IV product allows lenders to take loan applications electronically while interviewing applicants, quickly retrieve credit reports, efficiently review sources of repayment, and deploy their loan policies. Cypress provides these tools to community and regional financial institutions with the goal of speeding a quality loan decision back to the applicant.

According to Texas State Bank First Vice President Scott Tomlinson, the objective of the Mark IV deployment is "to create a highly efficient, paperless environment from the point of loan request through funding." Tomlinson said that he expects Mark IV to allow the bank's lenders and loan document personnel to achieve underwriting consistency across all locations and improve efficiency throughout the loan process, enabling the bank to respond more rapidly to customers' loan needs.

"We selected Cypress Mark IV because it is the best product in its class and the best fit for Texas State Bank," he said. "It is easy to use, yet very comprehensive in its approach to credit underwriting and record management."

Texas State Bank, a full-service commercial bank, offers its customers an extensive range of business and consumer products and services, while providing personalized customer service. The bank has consistently sought the most innovative technology, and as Texas State Bank expanded its market presence, it found it necessary to incorporate Mark IV into its loan operations procedures to better serve its customers. Texas State Bank expects Cypress Mark IV to play a key role in the Bank's continued growth equation.

Stephen Sargent, president & CEO of Cypress commented, "We are very pleased that Texas State Bank--after reviewing a number of other competitive products--chose Mark IV to help them manage their fast-growing consumer loan portfolio."

About Cypress Software Systems

Headquartered in Fort Worth, TX. Cypress Software Systems, LP is a leading developer of automated credit application decision support technologies. The company serves community and regional banks, finance companies and credit unions with loan application decision and tracking tools on par with those used by larger national lending institutions. The Company's flagship product, Mark IV, is used by clients nationwide to quickly and consistently process consumer loan applications. Cypress Mark IV offers a flexible, risk-based processing approach that includes tracking applications from point of entry through credit retrieval and interpretation, using client-defined credit policies, to point of decision. For more information on the Mark IV solution and other products, visit the company's web site at www.go-cypress.com or call 1-800-394-5777.

About Texas State Bank

Texas State Bank was established in 1981 in McAllen, where its headquarters are still based. The Bank conducts commercial banking business through 34 full-service banking centers in South Texas, including the Rio Grande Valley and Corpus Christi, and the Greater Houston Area. Texas State Bank is a wholly-owned subsidiary of Texas Regional Bancshares, Inc. with total assets over $4.07 billion and shareholders' equity over $411.1 million at quarter-end, June 30, 2003. Texas Regional stock began trading publicly on the NASDAQ Stock Market(R) in 1994 under the symbol TRBS. Information about Texas Regional can be obtained at www.TRBSinc.com and information about the products and services offered by Texas State Bank can be located at www.TexasStateBank.com.