FOR IMMEDIATE RELEASE
                                
                                
                                
          SARATOGA BANCORP ANNOUNCES DIVIDEND PAYMENT
                                

SARATOGA, CA    February 26, 1999   Saratoga Bancorp, parent company for 
Saratoga National Bank, is pleased to announce that its financial performance 
in 1998 has provided the Company with the ability to return a portion of its 
profits to its shareholders.  A $0.10 per share cash dividend, effective for
shareholders of record as of March 31, 1999 will be paid on April 14 1999.

An area leader in construction lending, Saratoga National Bank will celebrate 
17 years of service to businesses and individuals in Silicon Valley this year.
With a strong emphasis on relationship banking, Saratoga National Bank has 
established itself as one of the most consistently prosperous banks of its
size in the United States.  Saratoga National Bank has also just received 
an "Excellent" rating by the Weiss Ratings Index on Consumer Safety.

Saratoga National Bank operates offices in Saratoga at 12000 Saratoga-Sunnyvale
Road, Saratoga CA 95070, Los Gatos at 15405 Los Gatos Boulevard, Los Gatos CA 
95032 and San Jose at 160 W. Santa Clara Street, San Jose CA 95113.  For more 
information about the Bank, please visit our web site at www.saratoganb.com.



Richard L. Mount
12000 Saratoga-Sunnyvale Road
Saratoga, CA   95070
(408) 973-1111



                           UNAUDITED
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