[COMPANY LOGO]                                                         Press
                                                                      Release


NASDAQ NATIONAL MARKET - SASR
Web Site - www.ssnb.com
FOR IMMEDIATE RELEASE

                  SANDY SPRING BANK APPROVED FOR STATE CHARTER

Olney,  Maryland,  September  25,  2001 -- Sandy  Spring  Bancorp  (NASDAQ-SASR)
announced today that the Maryland State Commissioner of Financial Regulation has
approved the application of its wholly-owned  subsidiary,  Sandy Spring National
Bank of Maryland,  to be a state chartered  trust company,  to be known as Sandy
Spring Bank.

"The Bank  will  continue  as a member of the  Federal  Reserve  system  and all
deposits will remain FDIC insured," said President and Chief Executive  Officer,
Hunter R. Hollar. "The charter conversion will result in a meaningful  reduction
in supervisory costs.  Recent changes in legislation have created parity between
state  chartered and national  banks,  permitting  essentially the same range of
activities  for both types of  institutions.  As an  independent  community bank
operating  within  Maryland,  we believe the expense  associated with a national
charter is no longer warranted."

About Sandy Spring Bancorp/Sandy Spring Bank

With just  under $2  billion  in assets,  Sandy  Spring  Bancorp is the  holding
company  for Sandy  Spring Bank and its  principal  subsidiaries,  Sandy  Spring
Insurance Corporation and The Equipment Leasing Company. Sandy Spring Bancorp is
the third largest  publicly  traded banking company  headquartered  in Maryland.
Sandy Spring is a community  banking  organization  that focuses its lending and
other services on businesses and consumers in the local market area. Independent
and community-oriented, Sandy Spring Bank traces its origin to 1868 and offers a
broad range of commercial banking,  retail banking and trust services through 30
community offices and 46 ATMs located in Anne Arundel, Howard,  Montgomery,  and
Prince George's  counties in Maryland.  Visit us at www.ssnb.com  for our online
banking products and services.

For additional information or questions please contact:

         Hunter R. Hollar, President & Chief Executive Officer or
         Ronald E. Kuykendall, Secretary & General Counsel
         Sandy Spring Bancorp
         17801 Georgia Avenue
         Olney, Maryland 20832
         301-774-6400, 410-792-2450, 800-399-5919
         E-mail:  Hhollar@ssnb.com
                  Rkuykendall@ssnb.com
         Web site:  www.ssnb.com