"If one is looking at the California home purchase market today, the FHA is fueling the majority of financing," said Raymond E. Dellerba. Furthermore, looking at the breakdown between conventional and FHA financing, I believe that FHA is playing a bigger part today than at any time during the last 15 to 20 years." Dellerba went on to say, "This is very exciting to us because of the core mortgage team we have assembled, which averages 20 years of FHA experience per person. FHA loans require specialized expertise and we believe we have that expertise with four FHA approved underwriters on our team. Because there is a shortage of individuals with these qualifications in the industry, we believe this gives us a competitive edge. Our mortgage division is up and running and we are open for business," concluded Mr. Dellerba.

About Pacific Mercantile Bancorp and Pacific Mercantile Bank

Pacific Mercantile Bancorp is the parent holding company of Pacific Mercantile Bank, which opened for business March 1, 1999. The Bank is an FDIC insured, California state-chartered bank and a member of the Federal Reserve System and provides a wide range of commercial banking services and financial products, which includes mortgage financing, to businesses, business professionals and individual clients through its combination of traditional banking financial centers and comprehensive, sophisticated electronic banking services.

The Bank operates a total of eight financial centers in Southern California. The Bank's four Orange County financial centers are located in the cities of Newport Beach, Costa Mesa, La Habra and San Juan Capistrano. Our two Los Angeles County financial centers are located in Beverly Hills and Long Beach. Our San Diego financial center is located in La Jolla and our Inland Empire financial center is located Ontario. In addition to the Bank's physical locations, it offers comprehensive banking services over its Internet Bank, which is accessible 24/7 worldwide at www.pmbank.com.

Cautionary Statements Regarding Forward Looking Information

This news release contains statements regarding our expectations, beliefs, intentions and views about our future financial performance and our business and trends and expectations regarding the markets in which we operate.