Liberty Bell Bank Reports Results of Operations for Quarter Ended June 30, 2005

Business Wire, July 29, 2005

CHERRY HILL, N.J. -- Liberty Bell Bank (NASDAQ:LBBB) today announced the results of operations for the quarter ended June 30, 2005. The Bank reported a net loss of $398,000, or $0.18 per basic and diluted common share, for the three months ended June 30, 2005, compared to a net loss of $632,000, or $0.49 per basic and diluted common shares for the same period last year. This represents a 37% improvement over the second quarter 2004 results. The bank completed a stock offering in April 2005 that increased the number of shares outstanding by 1,394,815 to total shares outstanding at June 30, 2005 of 2,690,533 common shares. Net Interest Income, before provision for loan losses, increased to $458,000 for the three months ended June 30, 2005, compared to a Net Interest Loss of $36,000 for the comparable prior year period, representing an overall increase of $491,000. Total noninterest expense increased $212,000 to $785,000 for the three months ended June 30, 2005 compared to $573,000 for the same period in 2004.

President and CEO Kevin Kutcher notes, "This represents a 37% improvement over the second quarter last year and a 29% improvement over the most recent quarter. This is also the second straight quarter of improvement over a prior quarter. We see this trend continuing and anticipate that going forward our bottom line quarterly results will be an improvement over the most recent prior quarter as well as an improvement over the same period of the prior year as we continue toward profitability." Kutcher continued, "Since this time last year we opened our Moorestown New Jersey office in November 2004 and we are about to open our third banking office. Our Marlton, Evesham Township New Jersey office opens in another week on August 1. While this expansion, understandably, has increased our overhead expenses accordingly, it is important to note that our increase in net interest income was much greater than the increased overhead."

In discussing the branch expansion, Mr. Kutcher noted that, "Our assets, driven largely by our deposits, have grown substantially and at June 30, 2005 were just shy of $100 million at $99.2 million, an increase of $23.2 or 31% over total assets of $76.0 at December 31, 2004. We have established a strong base of core deposit relationships and our loan growth has contributed significantly to our bottom line improvement."

Liberty Bell Bank is a New Jersey State Chartered commercial bank, which was incorporated in 2002 and commenced operations in August 2003. The Bank maintains its principal office in Cherry Hill New Jersey and has a second office in Moorestown New Jersey. The Bank's third office is expected to open in July 2005 in Marlton, Evesham Township New Jersey at the intersection of Greentree Road and North Maple Ave.

The Bank may from time to time make written or oral "forward looking statements" including statements contained in this news release and in other communications by the Bank, which are made in good faith pursuant to the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements, such as statements of the Bank's plans, objectives, expectations, estimates and intentions, involves risks and uncertainties and are subject to change based on various important factors (some of which are beyond the Bank's control). The following factors, among others, could cause the Bank's financial performance to differ materially from the plans, objectives, expectations, estimates and intentions expressed in such forward-looking statements: the strength of the United States economy in general and the strength of the local economies in which the Bank conducts operations; the effects of, and changes in, trade, monetary and fiscal policies and laws, including interest rate policies of the Board of Governors of the Federal Reserve System, inflation, interest rate, market and monetary fluctuations; timely development of and acceptance of new products and services of the Bank and the perceived overall value of these products and services by users, including the features, pricing and quality compared to competitors products and services; the impact of changes in financial services' laws and regulations (including laws concerning taxes, banking securities and insurance); technological changes; acquisitions; changes in consumer spending and saving habits; and the success of the Bank at managing the risks involved in the foregoing.

The Bank cautions that the forgoing list of important factors is not exclusive. The Bank also cautions readers not to place undue reliance on these forward-looking statements, which reflect management's analysis only as of the date on which they are given. The Bank is not obligated to publicly revise or update these forward-looking statements to reflect events or circumstances that arise after any such date. Readers should carefully review the risk factors described in other documents the Bank files from time to time with the FDIC, including quarterly reports on Form 10-QSB, annual reports on Form 10-KSB and any current reports on Form 8K.