/ CORRECTION - California Oaks State Bank

THOUSAND OAKS, CA, May 11 (MARKET WIRE) --
In the news release "California Oaks State Bank Reports 1st Quarter 2009
Results," issued Friday, May 01, 2009, by California Oaks State Bank
(OTCBB: COSB), we are advised by the company the last sentence in the
third paragraph should read "FHLB borrowings decreased, compared to a
year ago, by $6.5 million" rather than "FHLB borrowings decreased,
compared to a year ago, by $6.0 million" as originally issued. Also, two
numbers have changed in the Balance Sheet table. For the 3/31/2009 column
of Other Assets, the figure should read "5,656" rather than "5,159" as
originally issued. For the 3/31/2008 column of FHLB Borrowings, the
figure should read "22,500" rather than "22,000" as originally issued.
Complete corrected text and tables follow.

California Oaks State Bank Reports 1st Quarter 2009 Results

THOUSAND OAKS, CA -- May 01, 2009 -- California Oaks State Bank (OTCBB:
COSB), a community business bank with assets of $126.5 million, today
reported net income for the first quarter of 2009 of $116,660 or $.08 per
share, compared to a net loss of $4,432 or ($0.01) per share in the first
quarter of 2008.

Total assets ended March 31, 2009 at $126.5 million with net loans and
deposits at $104.4 million and $92.3 million respectively. Total assets by
comparison for first quarter 2008 were $131.6 million with net loans and
deposits of $101.8 million and $93.4 million respectively. The year over
year growth in loans of $2.6 million can be attributed to the increase in
the commercial loan portfolio while the Bank continues to intentionally
shrink the riskier loan portfolios. A concerted effort has occurred to
reposition the portfolio from riskier lending groups to more typical
commercial lending. Although this migration is currently having an impact
on the net interest margin, the riskier lending was unacceptable from a
risk analysis standpoint.

On the deposit side, the Bank saw its deposit base remain stable compared
to a year ago due to an increase primarily in the certificate of deposit
category while demand deposits decreased $3.5 million and other deposits
remained relatively flat. FHLB borrowings decreased, compared to a year
ago, by $6.5 million.

The net interest margin as a percentage of average assets ended the first
quarter at 4.09% verses 4.73% in the fourth quarter of 2008. The decrease
in the Bank's margin in the first quarter can mainly be attributed to the
decrease in the prime lending rate late in the fourth quarter of 2008 of
75 basis points which carried into 2009.

A thorough analysis of the Bank's loan portfolio has been completed and
appears to be adequately reserved for loan losses. Over the past year, a
negative quality migration in the credit portfolio was experienced. This
migration can be attributed towards the general economic conditions the
country is experiencing.

The Bank's capital ratios remain strong with Tier 1 risk based capital at
13.52%. California Oaks State Bank remains highly capitalized as far as
the regulatory entities are concerned, with total risk based capital of
16.15%. In today's Banking environment, this is a very positive position
to be in. As was previously reported, the Bank received capital funding in
January for $3.3 million that the government made available under the
Treasury Capital Purchase Plan (TARP). Upon approval, $3.3 million of
preferred stock was sold to the U. S. Treasury to help fortress the
balance sheet and enable the Bank to increase lending efforts. The
government invests only in "healthy, viable banks."

John Nerland, the Bank's President and CEO, noted, "The Bank is focused on
keeping its cost structure in line through the current challenging
economic times and has been successful in reducing costs to offset the
margin compression. We are not expecting aggressive growth this year;
rather we are focused on maintaining and managing our existing credit
portfolio. We continue to make progress in aggressively working down the
problem and non accrual credits. In addition, we are encouraging core
deposits which will build franchise value for Cal Oaks."

Visit the California Oaks State Bank Web site at www.caloaks.com for more
information and updates on new products as they become available.

About California Oaks State Bank

California Oaks State Bank (OTCBB: COSB) with $122 million in assets is
located in Ventura County with offices in Thousand Oaks and Simi Valley
and a Loan Production Office located in Walnut Creek, Calif. California
Oaks State Bank was founded in 1998 as a locally owned Community business
bank. The bank provides a full range of products and services including
Commercial and real estate loans as well as cash management products and
deposit services. Its unique capability in diversified lending in addition
to its customary community bank credit products help its customers meet
their cash management goals.

Certain matters discussed in this press release constitute forward-looking
statements within the meaning of the Private Securities Litigation Reform
Act of 1995, and are subject to the safe harbors created by the act. These
forward-looking statements refer to the Company's current expectations
regarding future operating results, and growth in loans, deposits, and
assets. 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 by
financial service providers on the Company's results of operation, (2) the
Company's ability to continue its internal growth rate, (3) the Company's
ability to build net interest spread, (4) the quality of the Company's
earning assets, and (5) governmental regulations.

BALANCE SHEET
March 31, 2009 (Unaudited)
(000)

3/31/2009 3/31/2008
--------- ---------
ASSETS
Cash and Due from Banks $ 6,526 $ 6,265
Federal Funds Sold 8,045 9,080
Investment Securities 1,928 8,557
Loans (net) 104,360 101,849
Other Assets 5,656 5,849
--------- ---------
Total Assets $ 126,515 $ 131,600
========= =========

LIABILITIES & SHAREHOLDERS EQUITY
Demand Deposits $ 30,243 $ 34,817
Money Market and NOW Accounts 25,995 26,445
Savings Accounts 3,868 4,546
Time Deposits Under $100,000 17,212 17,668
Time Deposits $100,000 and Over 15,000 9,899
--------- ---------
Total Deposits 92,318 93,375
FHLB Borrowings 16,000 22,500
Other Liabilities 601 515
--------- ---------
Total Liabilities 108,919 116,390
Total Equity 17,596 15,210
--------- ---------
Total Liabilities and Equity $ 126,515 $ 131,600
========= =========

STATEMENT OF EARNINGS
March 31, 2009 (Unaudited)
(000)

3/31/2009 3/31/2008
--------- ---------
Interest Income $ 1,752 $ 1,988
Interest Expense 461 406
--------- ---------
Net Interest Income 1,291 1,582

Provision for Loan Loss 60 110
--------- ---------
Net Interest Income after Provision 1,231 1,472
Non Interest Income 327 228
--------- ---------
Total Operating Income 1,558 1,700

Total Non Interest Expense 1,441 1,706
--------- ---------
Net Income Before Tax & Extraordinary 117 -6
Tax and Extraordinary Items 0 2
--------- ---------
Net Income (Loss) $ 117 $ -4

RATIOS - Annualized 3/31/2009 3/31/2008
--------- ---------
Earnings Per Common Share $ 0.08 $ (0.01)
Book Value Per Common Share $ 9.64 $ 10.24
Return on Assets 0.37% (0.01%)
Return on Equity 2.94% (0.11%)

Copyright 2009, Market Wire, All rights reserved.

-0-