Bank of Smithtown Announces First New York City Branch

SMITHTOWN, N.Y., April 17, 2008 (PRIME NEWSWIRE) -- Bank of Smithtown has
acquired its first new branch location in New York City.

The location is on Seventh Avenue in the Chelsea section of Manhattan. The
Bank's Chairman & CEO, Brad Rock, commented: "For many years now, we have done a
considerable amount of commercial real estate lending and small business lending
in New York City. Recently we have been negotiating (and continue to negotiate)
for several branch sites in the City, and we are happy now to have signed a deal
to build our first." The branch will occupy a street level space in a
newly-constructed mid-rise condominium building that has been the subject of
recent architectural acclaim. All of the condominiums have already been sold,
and the first units are expected to be ready for occupancy this Fall. The bank
branch is expected to open during late June or early July.

With the recent opening of its Greenvale branch in Nassau County, Bank of
Smithtown currently has 16 branches on Long Island.

The Bank presently expects to open 4 to 6 new branches during 2008. In addition
to the Greenvale and Manhattan branches, the Nesconset branch should open during
late May, and the Huntington branch should open toward the end of the third
quarter.

The Bank also presently expects to open 5 or 6 new branches during 2009. Those
branches include Port Jefferson, Deer Park, Brentwood, East Setauket and St.
James.

Mr. Rock added: "These new branches will help us fund the exceptionally strong
loan growth that we have experienced lately. As a result of sub-prime mortgage
problems and other difficulties, some of our competitors have had to curtail
lending due to capital constraints or liquidity constraints. Because we have
been able to avoid those problems, the current economic environment has created
opportunities for us to do even more permanent commercial mortgage lending than
we have in the past." Over the past 10 years, Bank of Smithtown has averaged
loan growth of 26% per year.

Smithtown Bancorp (Nasdaq:SMTB) is the publicly-held parent company of Bank of
Smithtown. The Company's stock is traded on the NASDAQ Global Market under the
symbol "SMTB". In a recent issue of U.S. Banker magazine, the Company was rated
the sixth best "mid-size" bank in the United States, and the 13th best bank of
any size. There are approximately 8,300 banks in the United States.

Forward-Looking Statements

This release and other written materials and statements management may make, may
contain forward-looking statements regarding the Company's prospective
performance and strategies within the meaning of Section 27A of the Securities
Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934,
as amended. The Company intends such forward-looking statements to be covered by
the safe harbor provisions for forward-looking statements contained in the
Private Securities Litigation Reform Act of 1995, and is including this
statement for purposes of said safe harbor provisions.

Forward-looking statements, which are based on certain assumptions and describe
future plans, strategies and expectations of the Company, are sometimes
identified by use of the words "plan", "believe", "expect", "intend",
"anticipate", "estimate", "project", "appear" or other similar expressions. The
Company's ability to predict results or the actual effects of its plans and
strategies is inherently uncertain. Accordingly actual results may differ
materially from anticipated results.

Factors that could have a material adverse effect on the operations of the
Company and its subsidiaries include, but are not limited to, a change in
economic conditions; changes in interest rates, deposit flows, loan demand, real
estate values, and competition; changes in accounting principles, policies, or
guidelines; changes in legislation and regulation; other risk factors disclosed
in the Company's reports filed with the Securities and Exchange Commission; and
other economic, competitive, governmental, regulatory, geopolitical and
technological factors affecting the Company's operations, pricing and services.

Investors are cautioned not to place undue reliance on forward-looking
statements as a prediction of actual results. Except as required by applicable
law or regulation, the Company undertakes no obligation to republish or revise
forward-looking statements to reflect events or circumstances after the date the
statements were made or to reflect the occurrences of unanticipated results.
Investors are advised, however, to consult any further disclosures the Company
makes on related subjects in our reports to the Securities and Exchange
Commission.

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CONTACT: Bank of Smithtown
Ms. Judith Barber, Corporate Secretary
631-360-9304
Fax: 631-360-9380
brock@bankofsmithtown.net