Unity Bancorp Completes Branch Sale

Business Editors  
CLINTON, N.J.--(BUSINESS WIRE)--Dec. 18, 2000--UNITY BANCORP, INC. 
(NASDAQ NM: UNTY), announced today that its subsidiary, Unity Bank, 
had completed the sale of one bank branch located in Berkeley Heights, 
New Jersey to Hilltop Community Bank, a community-based bank 
headquartered in Summit, New Jersey.  
Under the terms of the transaction, Unity Bank will recognize a 
gain of $0.9 million, based on assumed deposits of approximately $8 
million and an agreed deposit premium of 11.15%.  
Mr. David Dallas, Chairman of the Unity Bancorp, Inc. and Unity 
Bank stated, "This transaction completes an integral phase of the 
Company's previously disclosed capital restoration and strategic 
plans. The divestiture of five branches will have an immediate and 
positive impact on capital and operating results. As a result of the 
reduction in assets and anticipated gains relative to the branch 
sales, the Company projects meeting its 6% tangible capital equity to 
average assets ratio earlier than required by the New Jersey 
Commissioner of Banking and Insurance."  
Unity Bank President Anthony J. Feraro added, "Unity's branch 
franchise is now stronger than ever before. Our retail administrative 
and sales teams can better focus their collective energies on the 
financial needs of consumers and small businesses in the 12 central 
Jersey communities we serve."  
Unity Bancorp, Inc., is a holding company for Unity Bank 
headquartered in Clinton, New Jersey. Unity provides a variety of 
retail and commercial financial services through 12 full-service 
branches located in Hunterdon, Middlesex, Union and Somerset Counties. 
Unity Bank is a leading "Preferred Lender" of SBA financing in New 
Jersey, Pennsylvania, Delaware and New York.  
For additional information about the Bank, call Unity Direct at 
800.618.BANK, or visit Unity's website at www.unitybank.com. E-mail 
may be addressed to the Bank at info@unitybank.com.