Manhattan Bancorp Announces Strong Growth and Exemplary Balance Sheet Strength at June 30, 2008

Business Wire, August 13, 2008

LOS ANGELES -- Manhattan Bancorp, ("Bancorp") (OTCBB: MNHN) the holding company of Bank of Manhattan, N. A. ("Bank"), a national bank, announced that total assets increased to $60.1 million at June 30, 2008, growth of 24% from the prior quarter ended March 31, 2008 and a year to date increase of 53%. Gross loans outstanding grew to $42.4 million, representing an increase of 32% and 133% for the quarter and year to date respectively. Funding for the strong loan growth came primarily from an increase in deposits which totaled $34.7 million at June 30, 2008, representing an increase of 25% and 94% from the March 31, 2008 and December 31, 2007 levels respectively.

The Bank's balance sheet is strong, which is extremely important in these uncertain financial times. At June 30, 2008, the Bank's shareholder equity was $20,393,000 and the total risk-based capital ratio of 41.13% stands more than four times above the regulatory definition of "Well Capitalized" level of 10%. Additionally, the loan portfolio continues to perform in an exemplary manner with no past dues, no criticized or classified loans, no non-performing loans and no Other Real Estate Owned. While no single asset class represents over 55% of the outstanding portfolio, the largest component, real estate related loans (consisting of multi-family, owner user and investor commercial and industrial real estate) is conservatively underwritten with a weighted average loan to value ratio of under 50% and a debt service coverage ratio of 1.36%.

"We have been able to continue solid core growth in these challenging times," stated Jeffrey M. Watson, President and Chief Executive Officer. "With our solid capital base and strong balance sheet, coupled with an additional $13.7 million in capital expected to be received by the end of the year, we are in an excellent position to capitalize on current market uncertainties and further accelerate our core business plan."

As is anticipated for a company in the initial operating stages, Manhattan Bancorp reported a net loss of $1,153,000 for the quarter ended June 30, 2008, which includes $162,000 in non-cash compensation expense and $163,000 provision to the allowance for loan losses. In spite of the interest rate environment, net interest income improved 29 percent over the prior quarter due to the strong loan growth experienced in the quarter. At June 30, 2008, the loan loss reserve represented 1.41% of gross outstanding loans. As previously stated, the Bank had no non-performing assets, or loans over 30 days past due at June 30, 2008.

Bank of Manhattan, which opened for business on August 15, 2007, is a full service bank headquartered in the South Bay area of Los Angeles, California. Bank of Manhattan's primary focus is relationship banking to entrepreneurs, family-owned and closely-held middle market businesses, real estate investors and professional service firms. On May 14, 2008 the Company announced that it had entered into a Stock purchase Agreement with Carpenter Fund Manager GP, LLC pursuant to which the Fund has agreed to purchase 1,500,000 shares of Manhattan Bancorp's stock at $10.00 per share for an aggregate purchase price of $15,000,000. On June 12, 2008, Manhattan Bancorp received the first installment of $1,281,750 with the final closing expected to occur prior to the end of the fourth quarter. Additional information is available at www.BankManhattan.com.

FORWARD-LOOKING STATEMENTS

Certain matters discussed in this release constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward looking statements relate to Bancorp's current expectations regarding deposit and loan growth, operating results and the strength of the local economy. These forward looking statements are subject to certain risks and uncertainties that could cause the actual results, performance or achievements to differ materially from those expressed, suggested or implied by the forward looking statements. These risks and uncertainties include, but are not limited to: (1) the impact of changes in interest rates, a decline in economic conditions and increased competition among financial service providers on Bank of Manhattan's operating results, ability to attract deposit and loan customers and the quality of Bank of Manhattan's earning assets; (2) government regulation; and (3) the other risks set forth in the Company's December 31, 2007 10-K/A, ITEM 1A. Risk Factors filed with the Securities and Exchange Commission. Bancorp 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.

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