[LETTERHEAD]


                                                               January 31, 1997

Editorial Contact:
Mary Anne Carson
Assistant Vice President
Tel: (408) 458-4501 ext. 2012
Fax: (408) 458-0460

FOR IMMEDIATE RELEASE

                            COAST BANCORP
                      ANNOUNCES STOCK REPURCHASE
                               PROGRAM


    Santa Cruz, California, January 31, 1997, Coast Bancorp (OTC: CTBP), 
parent company of Coast Commercial Bank, today announced that its Board of 
Directors approved a stock repurchase plan to repurchase up to 66,290 shares 
or 3% of its outstanding Common Stock, no par value, from time to time in 
open market transactions.

    Coast Bancorp's prior stock repurchase program which ended April, 1996 
resulted in the repurchase of 68,340 shares of its Common Stock.

    President and CEO of Coast Bancorp and Coast Commercial Bank, Harvey J. 
Nickelson said, "This second stock repurchase program reflects our continuing 
belief in the value of our stock and continues our program to increase 
shareholder value."

    Coast Commercial Bank is the only locally owned and operated community 
bank with headquarters in Santa Cruz, California and operates five branches 
in Santa Cruz County located in Santa Cruz, Aptos, Scotts Valley and
Watsonville.