Exhibit 99.1

Alan J. Lane, Chief Executive Officer
909.888.2265

CORPORATE INVESTOR RELATIONS
Becky Pendleton Reid
206.762.0993
www.stockvalues.com

NEWS RELEASE

BUSINESS BANCORP REPORTS 30% INCREASE IN SECOND QUARTER 2003 PROFITS

San Rafael, CA and San Bernardino, CA—BUSINESS WIRE—July 24, 2003—Business Bancorp (NasdaqNM:BZBC), the parent of Business Bank of California, today reported profits increased 30%, fueled by solid demand for commercial banking services and ongoing attention to operating efficiencies. Second quarter net income increased 30% to $1.7 million, or $0.38 per diluted share, compared to $1.3 million, or $0.30 per diluted share, in the second quarter 2002. Year-to-date net income grew 29% to $3.2 million, or $0.74 per diluted share, from $2.5 million, or $0.58 per share in the first six months of 2002. Per share results have been adjusted to reflect the 5% stock dividend paid June 28, 2003.

“Our second quarter financial results clearly demonstrate the benefits gained from the year-long integration process we completed last year, and we are beginning to see those anticipated synergies from the merger completed at the end of 2001,” said Alan J. Lane, Chief Executive Officer. Asset quality, return on equity and return on assets all improved from the second quarter of last year, and earnings per share growth again comfortably exceeded our target of 15% to 19% in 2003. We also posted growth of 6% for deposits, with a 14% increase in non-interest bearing deposits and a 6% increase in low-cost savings, money market and NOW accounts. Loans were relatively flat, with commercial real estate loans growing 19%, offsetting declines in other loan categories.

Financial Target Scorecard

	2Q03 Results		2003 Target	2002 Results
EPS Growth	27	%	15% to 19%	22	%
Return on Equity	11.22	%	11.5% or better	10.64	%
Return on Assets	1.03	%	1.05% or better	0.93	%
Nonperforming Assets/Assets	0.28	%	0.50% or better	0.32	%
Net Charge-Offs /Loans	2	bp	15 bp	3	bp
Deposit Growth (period end)	6.1	%	7% to 10%	2	%
Loan Growth (period end)	-0.7	%	8%	-3	%

“We are continuing to improve and expand our franchise as opportunities arise. Last October we opened the Ontario branch, and in the first half of the year we’ve added a number of business development officers and business relationship managers,” said Charles O. Hall, President and Chief Operating Officer. “While by no means robust, commercial lending demand has stabilized and shows hints of improvement.”

Operating Results

Revenues (net interest income before provision plus non-interest income) increased 3% to $9.0 million compared to $8.7 million in the second quarter a year ago. Net interest income before provision for loan losses was down 3% to $7.4 million. Other income in 2Q03 increased 53% to $1.6 million, with fee income growing 19% to $935,000, reflecting the growth of business services. “Service fees from deposit accounts increased 19%, adding $148,000 as new product introductions are being well-received by our customers and as fee offsets decline from lower interest rates,” noted Hall. Gains on sales of loans, real estate and investments totaled $338,000 in the quarter compared to $48,000 in the second quarter a year ago.

For the first six months of 2003, revenues increased 2% to $17.5 million from $17.2 million in the first six months of 2002. Year-to-date, net interest income declined 2% to $14.7 million from $15.0 million in the first half of 2002. Other income increased 33% to

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Business Bancorp 2Q03 Profits Up 30%

July 24, 2003

$2.8 million in the first half of 2003 from $2.2 million in the first half of 2002. Service fees increased 16%, generating $249,000 in incremental revenue in the first half. Gains from sale of loans, real estate and investments added $463,000 to first half revenues, compared to $48,000 in the year ago period.

“With more than 80% of our deposits in low-interest or non-interest bearing accounts, and with approximately 60% of our loans that adjust with the market, declining interest rates are taking a toll on margin,” said Patrick E. Phelan, CFO. “In a flat or declining interest rate environment, we anticipate continued pressure on our net interest margin.” Second quarter net interest margin was 5.21% compared to 5.32% in the first quarter of 2003 and 5.56% in the second quarter a year ago. Net interest margin in the first half was 5.26% compared to 5.47% in the like period a year ago.

“Operating expenses dropped 4% to $6.2 million in 2Q03 from $6.5 million in 2Q02, which included $285,000 in costs from the merger process. Year-to-date, operating expenses declined 6% to $12.1 million from $12.8 million in the first half of 2002. “Higher expenses from the new Ontario office and increases in business development staff offset some of the expense reductions achieved last year. As we lease out the building in which the Ontario branch is located, we anticipate occupancy expenses will fall next quarter and operating income will improve, as well,” said Phelan. The bank’s efficiency ratio improved to 69.2% in 2Q03 from 74.4% in 2Q02 and was 69.3% year-to-date compared to 74.9% in the first half of 2002.

Balance Sheet Highlights (at June 30, 2003 compared to June 30, 2002)

Business Bancorp’s assets were up 6% to $664 million from $627 million a year ago. Gross loans were down 1% to $395 million as growth in commercial real estate loans was offset by a reduction in other loan categories. Commercial real estate, which accounted for 68% of the total loan portfolio, grew 19%. Real estate construction loans totaled $66 million, off 14% from record levels last year and now account for 17% of the portfolio

Asset quality is strong, with non-performing assets totaling $1.8 million, or 0.28% of total assets, compared to $2.7 million, or 0.43% of assets a year ago. “Although Southern California’s economy has recovered much faster than Northern California, we are seeing excellent performance in both geographic areas of our portfolio. About 90% of our loan portfolio is secured by real estate, which provides solid security and a strong motivation for borrowers to meet their obligations,” commented Hall. The allowance for loan losses improved to 1.4% of total loans compared to 1.2% a year ago.

Deposits increased 6% to $553 million, with non-interest bearing deposits growing 14% and accounting for 35% of total deposits. Time certificates, both conventional and jumbo, dropped 7% to $95 million from $102 million a year ago. “We are continuing to focus on attracting business transaction accounts and believe the combination of a complete and convenient suite of business banking products and excellent customer service are helping us gain market share,” Lane said.

Shareholders’ equity grew 9% to $60 million, or $14.85 per share. Tangible book value increased 18% to $9.45 per share at quarter-end from $7.99 at the end of 2Q02. In 2002, the company repurchased 374,000 shares for a total of $4.9 million. For the first six months of 2003, the company repurchased 153,000 shares for a total of $2.9 million.

About Business Bancorp

Business Bancorp, parent of Business Bank of California, completed a merger of equals with MCB Financial, parent of Metro Commerce Bank, in December 2001. The bank now has assets of more than $600 million and operates 15 branches offering retail banking, commercial, construction, and SBA lending. The bank operates in the Southern California cities of Corona, Hemet, Hesperia, Ontario, Phelan, Riverside, Redlands, Upland and San Bernardino, and in the Northern California cities of San Rafael, Petaluma, San Francisco, South San Francisco, and Hayward. The branches are strongly focused on providing high quality, personalized services to small businesses, professionals and consumers. For further information on the company, visit our website at www.businessbank.com or e-mail your request to pphelan@businessbank.com. Include your name, phone, facsimile, e-mail and mailing address.

The statements contained in this release that are not historical facts are forward-looking statements based on management’s current expectations and beliefs concerning future developments and their potential effects on the company. There can be no assurance that future developments affecting the company will be those anticipated by management. Actual results may differ from those projected in the forward-looking statements. These forward-looking statements involve risks and uncertainties, including the bank’s ability to efficiently operate in two geographically distant markets, its ability to gain additional benefits from its merger with MCB Financial, the impact of current events on the California economy, changes in interest rates and the effect thereof on margins, the demand for leased office space in California, loan portfolio performance and other factors detailed in the company’s SEC filings.

INCOME STATEMENT

($ in thousands, except share and per share data)

	For the Three Months Ended								For the Six Months Ended
	June 30, 2003		March 31. 2003		June 30, 2002				Jun 30 2003		Jun 30 2002

Interest income	$	8,861	$	8,808	$	9,667	-8.3	%	$	17,669	$	19,216	-8.1	%
Interest expense	1,460		1,515		2,004		-27.1	%	2,975		4,208		-29.3	%
Net interest income	7,401		7,293		7,663		-3.4	%	14,694		15,008		-2.1	%
Provision for loan losses	100		100		200		-50.0	%	200		300		-33.3	%
Net interest income after provision for loan losses	7,301		7,193		7,463		-2.2	%	14,494		14,708		-1.5	%

Other Income:
Service feess on deposit accounts	935		901		787		18.8	%	1,836		1,587		15.7	%
Gain on sale of SBA loans	308		124		48		541.7	%	432		48		800.0	%
Gain on sale of other real estate owned	30		1		—				31		—
Gain / (loss) on sales of investments	—		—		—				—		—
Other	328		222		212		54.7	%	550		515		6.8	%
Total other income	1,601		1,248		1,047		52.9	%	2,849		2,150		32.5	%

Other Expenses:
Salaries and employee benefits	3,384		3,301		3,065		10.4	%	6,685		6,424		4.1	%
Occupancy	671		635		532		26.1	%	1,306		1,128		15.8	%
Other	2,175		1,982		2,880		-24.5	%	4,157		5,297		-21.5	%
Total other expenses	6,230		5,918		6,477		-3.8	%	12,148		12,849		-5.5	%

Income before income taxes	2,672		2,523		2,033		31.4	%	5,195		4,009		29.6	%
Income tax expense	1,006		945		756		33.1	%	1,951		1,501		30.0	%
Net income	$	1,666	$	1,578	$	1,277	30.5	%	$	3,244	$	2,508	29.3	%

PER SHARE DATA:
Net income per share
Basic	$	0.41	$	0.38	$	0.31	30.9	%	$	0.79	$	0.60	31.7	%
Diluted	$	0.38	$	0.36	$	0.30	27.6	%	$	0.74	$	0.58	27.5	%
Common dividends declared per share	$	0.01	$	0.01	$	0.01	0.0	%	$	0.02	$	0.02	0.0	%
Book value	$	14.85	$	14.43	$	13.40	10.8	%	$	14.85	$	13.40	10.8	%
Tangible book value	$	9.45	$	9.14	$	7.99	18.3	%	$	9.45	$	7.99	18.3	%
Weighted average common shares outstanding	4,072,295		4,139,977		4,084,823		-0.3	%	4,105,786		4,161,288		-1.3	%
Weighted average common and common equivalent shares outstanding	4,382,900		4,388,682		4,286,514		2.2	%	4,385,613		4,354,693		0.7	%
Common shares outstanding at period end	4,021,403		4,124,374		4,097,160		-1.8	%	4,021,403		4,097,160		-1.8	%

BALANCE SHEET

($ in thousands, except share and per share data)	Jun 30 2003			Mar 31 2003			Dec 31 2002			Sept 30 2002			Jun 30 2002			Annual Change
Assets:
Cash and due from banks	$	33,083		$	35,170		$	32,531		$	26,909		$	34,931		-5.3	%
Investments	194,424			172,181			181,821			159,876			157,621			23.3	%
Loans:
Real estate - construction	65,602			64,003			59,854			77,624			76,234			-13.9	%
Commercial real estate	267,979			256,871			253,105			245,198			226,108			18.5	%
Real estate - other	19,826			16,774			25,951			25,043			40,766			-51.4	%
Commercial	37,640			34,858			33,441			35,588			43,832			-14.1	%
Consumer and other	5,140			5,731			6,791			10,087			11,841			-56.6	%
Deferred loan fees, net	(1,393		)	(1,061		)	(1,042		)	(1,000		)	(1,064		)	30.9	%
Total loans	394,794			377,176			378,100			392,540			397,717			-0.7	%
Allowance for loan losses	(5,566		)	(5,562		)	(5,442		)	(5,028		)	(4,851		)	14.7	%
Total loans, net	389,228			371,614			372,658			387,512			392,866			-0.9	%
Goodwill and other intangible assets	21,741			21,826			21,911			22,083			22,152			-1.9	%
Other assets	25,191			25,763			22,010			21,564			19,402			29.8	%
Total assets	$	663,667		$	626,554		$	630,931		$	617,944		$	626,972		5.9	%
Liabilities and Stockholders’ Equity:
Liabilities:
Deposits:
Noninterest-bearing	$	192,767		$	183,094		$	184,728		$	177,205		$	168,474		14.4	%
NOW, MMDA and Savings	265,301			253,677			244,364			248,725			251,060			5.7	%
Time certificates, $100,000 and over	60,260			60,999			64,510			58,282			61,025			-1.3	%
Other time certificates	34,620			35,462			37,237			38,693			40,549			-14.6	%
Total deposits	552,948			533,232			530,839			522,905			521,108			6.1	%
Other borrowings	33,725			17,325			23,625			20,725			33,925			-0.6	%
Trust preferred securities	13,446			13,454			13,462			13,471			13,479			-0.2	%
Other liabilities	3,822			3,035			4,559			3,926			3,575			6.9	%
Total liabilities	603,941			567,046			572,485			561,027			572,087			5.6	%
Stockholders’ equity	59,726			59,508			58,446			56,917			54,885			8.8	%
Total liabilities and stockholders’ equity	$	663,667		$	626,554		$	630,931		$	617,944		$	626,972		5.9	%

SUPPLEMENT DATA

	Three months ended									Six months ended
($ in thousands, except share and per share data)	June 30, 2003			March 31, 2003			June 30, 2002			June 30, 2003			June 30, 2002

PROFITABILITY RATIOS:
Return on average assets	1.03		%	1.02		%	0.83		%	1.03		%	0.81		%
Return on average equity	11.22		%	10.78		%	9.59		%	11.00		%	9.36		%
Net interest margin	5.21		%	5.32		%	5.56		%	5.26		%	5.47		%
Efficiency ratio	69.21		%	69.29		%	74.36		%	69.25		%	74.89		%
Efficiency ratio excluding interest on trust preferred securities	66.67		%	66.65		%	71.55		%	66.66		%	72.03		%

AVERAGE BALANCES:
Average investments	$	185,210		$	175,789		$	160,608		$	180,525		$	162,611
Average loans, net of unearned income	$	385,050		$	379,898		$	392,040		$	382,488		$	391,066
Average interest earning assets	$	570,258		$	555,687		$	552,648		$	563,013		$	553,677
Average assets	$	646,377		$	625,808		$	620,791		$	636,149		$	620,871
Average deposits	$	549,282		$	527,370		$	533,343		$	538,387		$	526,972
Average interest bearing liabilities	$	395,203		$	380,893		$	394,502		$	388,088		$	398,441
Average equity	$	59,550		$	59,367		$	53,401		$	59,459		$	54,053

		Jun 30 2003			Mar 31 2003			Dec 31 2002			Sept 30 2002			Jun 30 2002
CREDIT QUALITY DATA:
Non-accrual loans		$	782		$	222		$	797		$	4,194		$	1,775
Loans 90 days or more past due and still accruing		119			122			249			29			54
Total nonperforming loans		901			344			1,046			4,223			1,829
Other real estate owned		940			965			995			1,005			885
Total nonperforming assets		$	1,841		$	1,309		$	2,041		$	5,228		$	2,714

Nonperforming loans / total loans		0.23		%	0.09		%	0.28		%	1.08		%	0.46		%
Nonperforming assets / total assets		0.28		%	0.21		%	0.32		%	0.85		%	0.43		%
Allowance for loan losses / total loans		1.41		%	1.47		%	1.44		%	1.28		%	1.22		%

Quarterly net loan charge-offs (recoveries)		$	96		$	(21	)	$	(14	)	$	123		$	22

OTHER PERIOD END STATISTICS:
Stockholders’ equity / total assets	(b	9.00		%	9.50		%	9.26		%	9.21		%	8.75		%
Loan to deposit ratio		71.40		%	70.73		%	71.23		%	75.07		%	76.32		%
Non-interest bearing deposits / total deposits		34.86		%	34.34		%	34.80		%	33.89		%	32.33		%

Note: Transmitted on Business Wire on July 24, 2003 at 1:48 p.m. PDT.

BUSINESS BANCORP /CA/ 8-K