Sun Bancorp, Inc.



News Release
For Immediate Release

Contact:      Dan Chila, EVP, Chief Financial Officer (856) 691-7700

         Sun Bancorp Announces Stock Dividend For 10th Consecutive Year

Our mission is uncompromising...
         ...to be the Premier Community Bank in every community we serve

VINELAND,  NJ,  March 17,  2005 - Thomas A.  Bracken,  president  and CEO of Sun
Bancorp,  Inc.  (Nasdaq:  SNBC),  parent holding  company for Sun National Bank,
announced  that on March 17, 2005, the Company's  Board of Directors  declared a
five percent (5%) stock  dividend.  The dividend will be paid on April 20, 2005,
to  shareholders  of record on April 6, 2005. The stock dividend  represents the
10th  consecutive  year in which the Board of  Directors  has  declared  a stock
dividend.  As a result  of this  Board  action,  the  outstanding  shares of the
Company's  common stock will  increase by  approximately  863,000  shares,  from
17,262,000 shares  outstanding to approximately  18,125,000 shares  outstanding.
Sun  stockholders  as of the record date for the  dividend  will receive cash in
lieu of fractional shares.

Sun Bancorp, Inc. is a multi-state bank holding company located in Vineland, New
Jersey. Its primary  subsidiary,  Sun National Bank, serves customers through 73
full  service  community  banking  centers  located in Southern  and Central New
Jersey,  in the contiguous New Castle market in Delaware,  and in  Philadelphia,
Pennsylvania. The Company's common stock is traded on the NASDAQ National Market
under the  symbol,  "SNBC."  The  deposits  of the Bank are insured to the legal
maximum by the Federal Deposit Insurance Corporation.

The  foregoing  material  contains  forward-looking  statements  concerning  the
financial  condition,  results of  operations  and business of the  Company.  We
caution that such statements are subject to a number of uncertainties and actual
results could differ materially and,  therefore,  readers should not place undue
reliance on any forward-looking  statements. The Company does not undertake, and
specifically  disclaims,  any obligation to publicly  release the results of any
revisions  that may be made to any  forward-looking  statements  to reflect  the
occurrence of anticipated or  unanticipated  events or  circumstances  after the
date of such statements.


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