September 25, 2006 - LAKE OSWEGO, OREGON. . .It was announced today by officials at The Bank of Oswego that all necessary federal and state regulatory approvals have been received for the bank to open its second location. The bank has signed a lease for a new full-service facility, and construction is now underway in the nearly 2000 square foot leased facility under the guidance of General Contractor, Richard Tolvstad of RT & Associates, Inc., and Sylvia Silva, owner of Design Classics One. The projected opening date is the beginning of November, 2006. This facility, including a drive-in, will be located at Kruse Way and Boones Ferry Road in Mercantile Village, in Lake Oswego.

Dan Heine, President and CEO commented that “This additional location is in response to our growing customer base in the Lake Grove and Kruse Way areas of Lake Oswego. It is gratifying to our board and employees that this community does indeed support a local “community bank”. The positive reception to our unique philosophical approach to banking - - local decision-making, world-class customer service delivered by spirited employees; while stepping up to support civic and community activities - - is reflective in this strategic decision to expand at this time of our young history. The community of Lake Oswego really values a successful local bank and our early success is indicative of that local attitude.”

We are very excited about this new location and are busy planning operationally for the consistent support that will be necessary to maintain our unique culture and high customer service standards. Although we now offer a broad array of banking products delivered through our downtown location, on-line banking and our mobile branch, this new location offers a greater convenience to our current clients living and working in the Lake Grove and Kruse Way area of Lake Oswego. It also gives us the opportunity to add many more new borrowers and deposit clients, because we will be right in the middle of a vibrant area of Lake Oswego. We will soon be announcing the staff to be headquartered in our new location.

The Bank of Oswego, a locally-owned and managed full service bank, is located in Lake View Village, at the intersection of A and State in downtown Lake Oswego. Lobby banking hours are 9:00 a.m. to 5:00 p.m. Monday through Friday, and at other times by appointment. Ample reserved parking is available in the Lake View Village parking garage. The Bank of Oswego serves businesses, individuals, entrepreneurs, women in business, and the mature market through: complete lending and deposit services; a mobile branch courier service; on-line banking; complimentary ATM usage; complimentary access to a “Community Room” for meetings; and an “At Your Service” concierge, who will provide expertise on local attractions, information about local events, and assistance with special arrangements.

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Dan Heine, President & CEO 503.445.3121