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                                   EXHIBIT 99





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MONTEREY BAY BANCORP
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FOR IMMEDIATE RELEASE
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                      MONTEREY BAY BANCORP, INC. ANNOUNCES
                       CONSUMMATION OF DEPOSIT ASSUMPTION


                                                Common Stock Symbol: MBBC
                                                Nasdaq National Market

December 10, 1996

      Monterey Bay Bank (the "Bank"), a wholly-owned subsidiary of Monterey Bay
Bancorp, Inc. ("Monterey Bay") today announced that it has consummated its
previously- announced agreement to assume approximately $102 million in deposits
from Fremont Investment & Loan ("Fremont"). These deposits were located in the
Monterey and Salinas, California offices of Fremont.

      Marshall G. Delk, President of Monterey Bay, stated that "I am very
pleased to have completed this transaction. Already having offices in both
Monterey and Salinas allows the bank to service our new depositors in a seamless
fashion. Monterey Bay Bank is dedicated to becoming the premier financial
organization in the greater Monterey Bay area, with this being another step
toward that goal."

      Monterey Bay Bancorp, Inc. and Monterey Bay Bank are headquartered in
Watsonville, California. The Bank operates through its administrative offices in
Watsonville, six (6) full service branches located in Watsonville, Gilroy,
Prunedale, Salinas, and Monterey and one (1) real estate office located in
Salinas, California. The Bank's deposits are insured by the Federal Deposit
Insurance Corporation.

Contact:    Marshall G. Delk
            President and Chief Operating Officer
            Monterey Bay Bancorp, Inc.
            (408) 722-3885