**Press      Release**

**For      Immediate Release**

**Contact:  Bruce      Walsh, Senior Vice-President and Chief Financial Officer**

**(401)      847-5500**

**Newport      Bancorp, Inc. Reports Results for Third Quarter of 2007**

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**CONSOLIDATED      BALANCE SHEETS**

|                                                                                                                                                                                                                                   |   | **September                  30,****2007**               |    |   | **December                31,**** 2006** |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------------------------------|---------|--------|-----------------------------------------------|--------|
|                                                                                                                                                                                                                                   |   | **(Unaudited)****(Dollars                in thousands)** |    |
| **ASSETS**                                                                                                                                                                                                                             |   |
|                                                                                                                                                                                                                                   |   |
| Cash                and due from banks                                                                                                                                                                                                 |   | $                                                        | 3,980   |   |                                          | $      | 3,705 |   |
| Short-term                investments                                                                                                                                                                                                  |   |                                                     | 3,533   |   |                                          |   | 3,567 |   |
| Cash                and cash equivalents                                                                                                                                                                                               |   |                                                     | 7,513   |   |                                          |   | 7,272 |   |
|                                                                                                                                                                                                                                   |   |                                                     |    |   |                                          |   |   |   |
| Securities                available for sale, at fair value                                                                                                                                                                            |   |                                                     | 6,862   |   |                                          |   | 6,614 |   |
| Securities                held to maturity, at amortized cost                                                                                                                                                                          |   |                                                     | 1,717   |   |                                          |   | 1,922 |   |
| Federal                Home Loan Bank stock, at cost                                                                                                                                                                                   |   |                                                     | 3,496   |   |                                          |   | 2,390 |   |
| Loans                                                                                                                                                                                                                                  |   |                                                     | 284,602 |   |                                          |   | 258,739 |   |
| Allowance                for loan losses                                                                                                                                                                                               |   |                                                     | (2,259  | )      |                                          |   | (1,973 | ) |
| Loans,                net                                                                                                                                                                                                              |   |                                                     | 282,343 |   |                                          |   | 256,766 |   |
| Premises                and equipment, net                                                                                                                                                                                             |   |                                                     | 5,918   |   |                                          |   | 6,099 |   |
| Accrued                interest receivable                                                                                                                                                                                             |   |                                                     | 1,197   |   |                                          |   | 1,027 |   |
| Deferred                income taxes                                                                                                                                                                                                   |   |                                                     | 1,975   |   |                                          |   | 1,851 |   |
| Bank-owned                life insurance                                                                                                                                                                                               |   |                                                     | 9,177   |   |                                          |   | 5,382 |   |
| Other                assets                                                                                                                                                                                                            |   |                                                     | 803     |   |                                          |   | 1,121 |   |
| Total                assets                                                                                                                                                                                                            |   | $                                                        | 321,001 |   |                                          | $      | 290,444 |   |
|                                                                                                                                                                                                                                   |   |
| **LIABILITIES                AND STOCKHOLDERS’ EQUITY**                                                                                                                                                                          |   |
| Deposits                                                                                                                                                                                                                               |   | $                                                        | 195,371 |   |                                          | $      | 192,974 |   |
| Short-term                borrowings                                                                                                                                                                                                   |   |                                                     | 512     |   |                                          |   | 2,500 |   |
| Long-term                borrowings                                                                                                                                                                                                    |   |                                                     | 63,214  |   |                                          |   | 31,950 |   |
| Accrued                expenses and other liabilities                                                                                                                                                                                  |   |                                                     | 2,527   |   |                                          |   | 3,040 |   |
| Total                liabilities                                                                                                                                                                                                       |   |                                                     | 261,624 |   |                                          |   | 230,464 |   |
|                                                                                                                                                                                                                                   |   |                                                     |    |   |                                          |   |   |   |
| Preferred                stock, $.01 par value; 1,000,000 shares authorized;       none                issued                                                                                       |   |                                                     | -       |   |                                          |   | - |   |
| Common                stock, $.01 par value; 19,000,000 shares authorized; 4,878,349                shares issued, 4,745,989 and 4,878,349 shares outstanding                at September 30, 2007 and December 31, 2006, respectively |   |                                                     | 49      |   |                                          |   | 49 |   |
| Additional                paid in capital                                                                                                                                                                                              |   |                                                     | 47,323  |   |                                          |   | 47,258 |   |
| Retained                earnings                                                                                                                                                                                                       |   |                                                     | 17,281  |   |                                          |   | 16,477 |   |
| Unearned                compensation - ESOP                                                                                                                                                                                            |   |                                                     | (3,447  | )      |                                          |   | (3,643 | ) |
| Treasury                stock, at cost (132,360 shares at September 30, 2007)                                                                                                                                                          |   |                                                     | (1,660  | )      |                                          |   | - |   |
| Accumulated                other comprehensive loss                                                                                                                                                                                    |   |                                                     | (169    | )      |                                          |   | (161 | ) |
| Total                stockholders’                equity                                                                                                                                                                         |   |                                                     | 59,377  |   |                                          |   | 59,980 |   |
| Total                liabilities and                stockholders’ equity                                                                                                                                                         |   | $                                                        | 321,001 |   |                                          | $      | 290,444 |   |

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**CONSOLIDATED      STATEMENTS OF OPERATIONS**

|                                                                                                      |   | **Three                Months Ended****September                30,**           |   |   | **Nine                Months Ended****September                30,** |   |
|-----------------------------------------------------------------------------------------------------------|--------|---------------------------------------------------------------------------------|--------|--------|----------------------------------------------------------------------|--------|
|                                                                                                      |   | **2007**                                                                        |   |   | **2006**                                                             |   |   | **2007** |   |   | **2006** |   |
|                                                                                                      |   | **(Unaudited)****(Dollars                in thousands, except per share data)** |   |
|                                                                                                      |   |                                                                            |   |   |                                                                 |   |   |   |   |   |   |   |
| Interest                and dividend income:                                                              |   |                                                                            |   |   |                                                                 |   |   |   |   |   |   |   |
| Interest                and fees on                loans                                                  |   | $                                                                               | 4,360  |   |                                                                 | $      | 3,933 |   |   | $ | 12,641 |   |   | $ | 11,277 |   |
| Interest                and dividends on                securities                                        |   |                                                                            | 107    |   |                                                                 |   | 99 |   |   |   | 316 |   |   |   | 281 |   |
| Dividends                on Federal Home Loan                Bank stock                                   |   |                                                                            | 45     |   |                                                                 |   | 99 |   |   |   | 126 |   |   |   | 178 |   |
| Interest                on certificates of                deposit                                         |   |                                                                            | -      |   |                                                                 |   | 1 |   |   |   | - |   |   |   | 13 |   |
| Interest                on short-term                investments                                          |   |                                                                            | 24     |   |                                                                 |   | 113 |   |   |   | 41 |   |   |   | 160 |   |
| Total                interest and dividend                income                                          |   |                                                                            | 4,536  |   |                                                                 |   | 4,245 |   |   |   | 13,124 |   |   |   | 11,909 |   |
|                                                                                                      |   |                                                                            |   |   |                                                                 |   |   |   |   |   |   |   |   |   |   |   |
| Interest                expense:                                                                          |   |                                                                            |   |   |                                                                 |   |   |   |   |   |   |   |   |   |   |   |
| Interest                on                deposits                                                        |   |                                                                            | 1,218  |   |                                                                 |   | 969 |   |   |   | 3,639 |   |   |   | 2,766 |   |
| Interest                on short-term                borrowings                                           |   |                                                                            | 34     |   |                                                                 |   | - |   |   |   | 314 |   |   |   | 369 |   |
| Interest                on long-term                borrowings                                            |   |                                                                            | 678    |   |                                                                 |   | 429 |   |   |   | 1,538 |   |   |   | 1,562 |   |
| Total                interest                expense                                                      |   |                                                                            | 1,930  |   |                                                                 |   | 1,398 |   |   |   | 5,491 |   |   |   | 4,697 |   |
|                                                                                                      |   |                                                                            |   |   |                                                                 |   |   |   |   |   |   |   |   |   |   |   |
| Net                interest income                                                                        |   |                                                                            | 2,606  |   |                                                                 |   | 2,847 |   |   |   | 7,633 |   |   |   | 7,212 |   |
| Provision                for loan losses                                                                  |   |                                                                            | 126    |   |                                                                 |   | 50 |   |   |   | 286 |   |   |   | 82 |   |
|                                                                                                      |   |                                                                            |   |   |                                                                 |   |   |   |   |   |   |   |   |   |   |   |
| Net                interest income, after                provision for loan losses                        |   |                                                                            | 2,480  |   |                                                                 |   | 2,797 |   |   |   | 7,347 |   |   |   | 7,130 |   |
|                                                                                                      |   |                                                                            |   |   |                                                                 |   |   |   |   |   |   |   |   |   |   |   |
| Other                income (charges):                                                                    |   |                                                                            |   |   |                                                                 |   |   |   |   |   |   |   |   |   |   |   |
| Customer                service                fees                                                       |   |                                                                            | 461    |   |                                                                 |   | 445 |   |   |   | 1,376 |   |   |   | 1,121 |   |
| Gain                on sales of                loans                                                      |   |                                                                            | -      |   |                                                                 |   | - |   |   |   | - |   |   |   | 14 |   |
|        FHLB                prepayment penalties                        |   |                                                                            | -      |   |                                                                 |   | (367 | ) |   |   | - |   |   |   | (367 | ) |
|        Bank-owned                life insurance                        |   |                                                                            | 97     |   |                                                                 |   | 19 |   |   |   | 288 |   |   |   | 57 |   |
| Miscellaneous                                                                                             |   |                                                                            | 26     |   |                                                                 |   | 28 |   |   |   | 73 |   |   |   | 95 |   |
| Total                other                income                                                          |   |                                                                            | 584    |   |                                                                 |   | 125 |   |   |   | 1,737 |   |   |   | 920 |   |
|                                                                                                      |   |                                                                            |   |   |                                                                 |   |   |   |   |   |   |   |   |   |   |   |
| Operating                expenses:                                                                        |   |                                                                            |   |   |                                                                 |   |   |   |   |   |   |   |   |   |   |   |
| Salaries                and employee                benefits                                              |   |                                                                            | 1,414  |   |                                                                 |   | 1,387 |   |   |   | 4,236 |   |   |   | 3,976 |   |
| Occupancy                and equipment,                net                                                |   |                                                                            | 323    |   |                                                                 |   | 305 |   |   |   | 948 |   |   |   | 920 |   |
| Data                processing                                                                            |   |                                                                            | 255    |   |                                                                 |   | 278 |   |   |   | 762 |   |   |   | 771 |   |
| Professional                fees                                                                          |   |                                                                            | 143    |   |                                                                 |   | 118 |   |   |   | 408 |   |   |   | 294 |   |
| Marketing                                                                                                 |   |                                                                            | 321    |   |                                                                 |   | 241 |   |   |   | 862 |   |   |   | 716 |   |
|        Contribution                to NewportFed Charitable Foundation |   |                                                                            | -      |   |                                                                 |   | 3,614 |   |   |   | - |   |   |   | 3,614 |   |
| Other                general and                administrative                                            |   |                                                                            | 171    |   |                                                                 |   | 180 |   |   |   | 522 |   |   |   | 612 |   |
| Total                operating                expenses                                                    |   |                                                                            | 2,627  |   |                                                                 |   | 6,123 |   |   |   | 7,738 |   |   |   | 10,903 |   |
|                                                                                                      |   |                                                                            |   |   |                                                                 |   |   |   |   |   |   |   |   |   |   |   |
| Income                (loss) before income taxes                                                          |   |                                                                            | 437    |   |                                                                 |   | (3,201 | ) |   |   | 1,346 |   |   |   | (2,853 | ) |
|                                                                                                      |   |                                                                            |   |   |                                                                 |   |   |   |   |   |   |   |   |   |   |   |
| Provision                (benefit) for income taxes                                                       |   |                                                                            | 176    |   |                                                                 |   | (855 | ) |   |   | 542 |   |   |   | (729 | ) |
|                                                                                                      |   |                                                                            |   |   |                                                                 |   |   |   |   |   |   |   |   |   |   |   |
| Net                income (loss)                                                                          |   | $                                                                               | 261    |   |                                                                 | $      | (2,346 | ) |   | $ | 804 |   |   | $ | (2,124 | ) |

| Weighted-average                shares outstanding: |   |   |      |   |   |   |   |   |   |   |               |   |
|-----------------------------------------------------|--------|--------|-----------|--------|--------|--------|--------|--------|--------|--------|--------------------|--------|
| Basic                                               |   |   | 4,513,336 |   |   |   | n/a    |   |   |   | 4,517,506          |   |   |   | n/a |   |
| Diluted                                             |   |   | 4,513,336 |   |   |   | n/a    |   |   |   | 4,517,506 n/a |   |   |   |   |   |
|                                                |   |   |      |   |   |   |   |   |   |   |               |   |   |   |   |   |
| Earnings                per share:                  |   |   |      |   |   |   |   |   |   |   |               |   |   |   |   |   |
| Basic                                               |   | $      | .06       |   |   |   | n/a    |   |   | $      | .18                |   |   |   | n/a |   |
| Diluted                                             |   | $      | .06       |   |   |   | n/a    |   |   | $      | .18                |   |   |   | n/a |   |