Horizon Bancorp Announces NASDAQ Listing

Business Wire, Dec 17, 2001

Business Editors

MICHIGAN CITY, Ind.--(BUSINESS WIRE)--Dec. 17, 2001

From around the corner to around the world, investors can more easily buy and sell Horizon Bancorp stock since it has joined an elite group of companies listed on the NASDAQ electronic stock market. Horizon was approved for listing on NASDAQ Small Cap Market December 14, 2001; under NASDAQ Small Cap Market rules, trading will commence December 20, 2001. The stock will be traded under the symbol HBNC.

Established in 1971 as the world's first electronic stock market, NASDAQ serves millions of investors around the globe. It is the fastest growing stock market in the United States. Currently, more than 5,000 companies' securities are traded on this market.

"NASDAQ is the world's most sophisticated trading system," said Craig Dwight, Horizon's President and CEO. "It will allow investors to buy and sell Horizon stock quickly and easily at guaranteed price quotes, a convenience that was not available when we were traded as an OTC Bulletin Board stock."

Other major news involves a significant increase in permanent book equity. Due to an accounting adjustment permitted as a result of the NASDAQ listing, - eliminating a put option on shares of Horizon stock held in the employee stock bonus plan - Horizon will show an approximate $5 million increase in the permanent equity section of the balance sheet. Horizon expects this to have the effect of increasing book value per share as reported by independent market analysts.

The NASDAQ listing is the second step Horizon has taken to implement its innovative Shareholder Value Plan, adopted in October of this year. The Plan is a comprehensive strategic plan to broaden and improve the market for Horizon common stock with local community investors who have a long-term, personal interest in helping Horizon remain an independent community bank.

The first step in the Plan was a three-for-one stock split, announced in October, increasing the number of shares outstanding from 661,900 to 1,985,700; the second step was the NASDAQ listing, announced today.

The next step in the Plan will be to adopt a so-called "Direct Stock Purchase Plan" early next year. The Direct Purchase Plan will make it easier for individuals to buy relatively small amounts of stock and reinvest dividends. It will allow shareholders the choice of reinvesting their dividends or having dividends deposited directly into their bank accounts.

"As I've said before, we are a locally owned, independent, community bank holding company, and we intend to stay that way," Dwight said. "In order to remain independent, we need to provide more liquidity for our stock at a reasonable price and expand our local shareholder base. The steps we are taking are designed to do just that."

Horizon Bancorp is a locally owned, independent bank holding company serving the northwestern Indiana/southwestern Michigan areas. It offers banking, insurance, investment and trust services from offices located in Michigan City, LaPorte, Wanatah, Chesterton, Portage, Valparaiso and Merrillville, Indiana, and provides mortgage-banking services throughout the Midwest. Horizon Bancorp may be reached on the World Wide Web at www.accesshorizon.com. Our common stock is traded on NASDAQ Small Cap Market under the symbol HBNC.

Statements in this press release, which express "belief," "intention," "expectation," and similar expressions identify forward-looking statements. In particular, although the Company believes it will obtain a NASDAQ listing and will be able to implement a direct purchase plan for its stock, there can be no assurances that these goals will be achieved. Such forward-looking statements are based on the beliefs of the Company's management, as well as assumptions made by, and information currently available to, such management. Such statements are inherently uncertain and there can be no assurance that the underlying assumptions will prove to be valid. Actual results could differ materially from those contemplated by the forward-looking statements. Any forward-looking statements in this release are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.