FOR IMMEDIATE RELEASE
- ---------------------

January 5, 2000

Contact:  Hazel S. Farmer
          (804) 435-4101

                       BAY TRUST COMPANY BEGINS OPERATIONS

         Bay Trust Company, Inc., an affiliate of Bay Banks of Virginia and Bank
of  Lancaster,  began  operation  on  January  3, 2000,  reports  trust  company
president Paul T. Sciacchitano.

         "We are excited about the  opportunities  that lie ahead for Bay Trust,
Sciacchitano  reported.  "We want to  create  long-term  relationships  with our
customers and have them view us as lifetime asset managers, not just settlers of
estates  and  trusts.  Through  personal  service  and a full  line of trust and
investment  products,  it is our  desire  to be the sole  source  for all of our
customers' financial needs."

         "The  Year  2000  and  the  new  century  will  provide  us  with  many
opportunities  for future growth and expansion," he stated.  "Our vision for the
future includes entering new markets,  providing  diversification and giving Bay
Trust  more of a regional  presence  as we bring our  unique  style of  personal
service and excellence to a broader customer base."

         Joining  Sciacchitano  in this new endeavor is Barbara K. McNeal,  Vice
President and Trust Officer; Robert N. Carter, Vice President and Trust Officer;
Stephanie K. Cammarata,  Operations  Manager;  Kathleen F. Pollard and Pamela J.
Kidwell,   Administrative  Assistants;   and  Beverly  F.  Garrett,   Securities
Processor.  "With  almost  ninety  years of  experience  in  banking,  trust and
investments, our staff is one of our most valuable assets. They will provide our
customers with a great deal of knowledge and depth," reports Sciacchitano.

         Bay Trust is  headquartered  at the Bank of Lancaster's  main office at
100 South Main Street,  Kilmarnock,  Virginia.  Renovation  plans are  currently
underway for a new facility.