U.S. Department of Education Selects Commerce Capital Markets to Administer Financing Program for Historically Black Colleges and Universities.

Business Editors

PHILADELPHIA--(BUSINESS WIRE)--July 24, 2001

Commerce Capital Markets, Inc., a wholly-owned subsidiary of Commerce Bancorp (NYSE Symbol:CBH) has been selected by the U.S. Department of Education to operate the nation's Historically Black College and University Capital Financing Program.

The program is designed to recognize the significant contributions Historically Black Colleges and Universities have made to American culture and to address their needs for capital improvements and access to viable funding sources. A primary goal of the program is to provide Historically Black Colleges and Universities with low cost capital to fund infrastructure improvements that will enable them to continue and to expand their educational activities.

Under this program, the U.S. Department of Education provides financial insurance to guarantee up to $375 million in loans and interest to qualifying Historically Black Colleges and Universities. Loans administered through the program may be used to finance or refinance a wide range of campus projects including:

- Classroom Facilities                      - Laboratory Facilities
- Dormitories / Dining Halls                - Student Centers
- Library Facilities                        - Instructional Equipment

Commerce Capital Markets has established the Commerce Capital Access Program Corporation (CCAPC) to serve as the Department of Education's Designated Bonding Authority. CCAPC will establish the loan criteria for the program and work closely with the participating colleges and universities to review their projects and determine whether or not the institution has the necessary credit standing to qualify for the needed loan.

CCAPC executives also will provide participating schools with ongoing financial management expertise and construction planning and management guidance to help ensure the successful completion of their projects.

"We are very proud to have this opportunity to work with the nation's Historically Black Colleges and Universities," said Commerce Capital Markets' Senior Vice President Denis J. Carlson, who is serving as CCAPC Executive Director. "Commerce Capital Markets' selection by the Department of Education reflects our extensive experience in developing financing strategies and funding programs for a variety of the nation's foremost colleges and universities."

"The strengthening of Historically Black Colleges and Universities is critical in developing the next generation of leaders," added Congressman Chaka Fattah (D-PA). I am pleased to see a locally-based institution taking a lead in this process."

To help the nation's Historically Black Colleges and Universities address the complex facilities, funding and investment issues that are impacting many of the nation's higher education institutions, the U.S. Department of Education and the CCAPC are hosting a special conference in New Orleans, LA on July 26 and 27. The conference, which is designed for the Presidents and Chief Financial Officers of the nation's Historically Black Colleges and University's, also will also familiarize them with the services and benefits offered through the CCAPC.

Additional information regarding the Historically Black College and University Capital Financing Program can be found on the Internet at www.ccapa.com.

Commerce Capital Markets is one of the nation's largest public finance companies specializing in the field of higher education and health care. The firm also is the Mid-Atlantic region's leader in serving the public finance needs of state and municipal clients. Commerce Capital's public finance experts work closely with clients to develop beneficial strategies that incorporate a variety of tax-exempt bonds, notes and other securities.

Commerce Bancorp is one of the nation's fastest-growing financial services retailers with $9.3 billion in assets and a rapidly expanding network of more than 160 branches. Commerce is maintaining an aggressive expansion pace, working toward a total asset goal of $22 billion and a branch network of 325 offices by the year 2005. The bank plans to add 30+ new locations throughout New Jersey, eastern Pennsylvania, Delaware and Manhattan in 2001.

For more information about Commerce, please visit the Company's interactive financial resource center at commerceonline.com.

For more information contact David Flaherty - Vice President of Corporate Communications - 856/751-4069.