Exhibit 99.1

September 29, 2000

FOR IMMEDIATE RELEASE



               MONTEREY BAY BANCORP, INC. ANNOUNCES RESIGNATION OF
                                MARSHALL G. DELK,
                      PRESIDENT AND CHIEF OPERATING OFFICER



                                                     Common Stock Symbol:  MBBC
                                                         NASDAQ National Market



         Watsonville,  CA.  September  29,  2000.  Monterey  Bay  Bancorp,  Inc.
("Company") today reported the resignation of Marshall G. Delk. This resignation
is effective  immediately.  Mr. Delk held the  positions of President  and Chief
Operating  Officer at both  Monterey  Bay  Bancorp,  Inc.  and Monterey Bay Bank
("Bank"),  the Company's  subsidiary.  A separation  package is currently  being
negotiated.  The Company  anticipates  recording a charge  against third quarter
operations in conjunction with the separation  package. At this time, Mr. Delk's
functional responsibilities will be assumed by C. Edward Holden, Chief Executive
Officer and Vice Chairman of the Board of the Company and the Bank.

         The  Company's  common  stock is listed on the NASDAQ  National  Market
under  the  symbol  "MBBC".  The  Company  and the  Bank  are  headquartered  in
Watsonville, California. The Bank operates through its administrative offices in
Watsonville and eight full service  branches located in the Greater Monterey Bay
Area of Central California.

         This news release contains certain forward-looking  statements that are
subject to various factors that could cause actual results to differ  materially
from such statements. Such factors include the possibility that the Company will
not be successful in achieving its tactical and strategic objectives,  and other
factors  discussed in documents  filed by the Company  with the  Securities  and
Exchange  Commission  from time to time.  The Company  does not  undertake,  and
specifically disclaims any obligation, to update any forward-looking  statements
to reflect  occurrences or unanticipated  events or circumstances after the date
of such statements.


                        For further information contact:


C. Edward Holden                                        Mark R. Andino
Chief Executive Officer                 or              Chief Financial Officer
(831) 768 - 4840                                        (831) 768 - 4806


                            INFO@MONTEREYBAYBANK.COM
                              Fax: (831) 722 - 6794


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