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Peninsula Bank Business Funding Closes a $2 million Working Capital Facility with Optex Systems Holdings, Inc.

March 25, 2010

PALO ALTO, Calif.--(BUSINESS WIRE)-- Peninsula Bank Business Funding ("PBBF"), a division of The Private Bank of the Peninsula, today announced that it successfully closed a new receivables line of credit with Optex Systems, Inc., a Delaware corporation. The credit facility is up to $2,000,000, based on advances to be made against percentages of eligible receivables, and will mature one year from signing. Optex Systems intends to use the new facility to finance its working capital requirements and growth opportunities.

"We are pleased that this facility has closed and are very much looking forward to working with the board and management team of Optex Systems," said Mike Hansen, Executive Vice President of Peninsula Bank Business Funding. "We feel they are well positioned in their market place and we hope to be a long-term financial partner."

Founded in 1987, Optex Systems is a Richardson, Texas-based manufacturer of optical sighting systems and assemblies, primarily for Department of Defense applications. Its products are installed on various types of U.S. military land vehicles, such as the Abrams and Bradley fighting vehicles, Light Armored and Armored Security Vehicles, and have been selected for installation on the Stryker family of vehicles. Optex Systems also manufactures and delivers numerous periscope configurations, rifle and surveillance sights, and night vision optical assemblies. Optex Systems delivers its products both directly to the military services and to prime contractors. (www.optexsys.com)

"This new facility strengthens the Company's balance sheet and provides additional working capital to accommodate future growth," said Danny Schoening, Chief Operating Officer of Optex Systems Holdings, Inc. "We believe we have successfully restructured the Company's operations over the past year, as demonstrated by improved operating cash flow, and we are now poised to build upon this stable foundation going forward."

About PBBF

A division of The Private Bank of the Peninsula, PBBF provides asset based lending products to emerging growth and venture-backed companies throughout the United States.

About the Bank

The Private Bank of the Peninsula, a subsidiary of Peninsula Bank Holding Co. (OTCBB:PBKH), is headquartered in Palo Alto, California. The Private Bank focuses on the banking needs of businesses and individuals primarily in the Greater San Francisco Bay Area. The Bank's experienced senior management team provides personalized, relationship-based service, giving clientele access to senior level decision-makers. The Bank specializes in the following markets: commercial & industrial, asset based, real estate construction, commercial real estate, and real estate bridge financing.

    Source: Private Bank of the Peninsula
Contact: The Private Bank of the Peninsula Steve Leen, Chief Financial Officer, 650-843-2204 www.the-private-bank.com

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