|                                                 |                                           |
|------------------------------------------------------|------------------------------------------------|
| Stewart                E. McClure, Jr.               | Gerard                Riker                    |
| President                and Chief Executive Officer | EVP                and Chief Financial Officer |
| 908-630-5000                                         | 908-630-5018                                   |

**SOMERSET      HILLS BANCORP REPORTS**

**RESULTS      FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 2007**

** **

----

**Forward-Looking      Statements**

----

|                                                                                         |   |                                 |    |   |     |   |
|----------------------------------------------------------------------------------------------|--------|--------------------------------------|---------|--------|----------|--------|
|                                                                                         |   |                                 |    |   |     |   |
| **($                in thousands except per share data)**                                    |   | **Nine                Months Ended** |    |
|                                                                                         |   | **September                30**      |    |
|                                                                                         |   | **2007**                             |    |   | **2006** |   |
|                                                                                         |   |                                 |    |   |     |   |
| **Income                Statement Data:**                                                    |   |                                 |    |   |     |   |
|                                                                                         |   |                                 |    |   |     |   |
|      Interest                income                                 |   | $                                    | 13,515  |   |     | $      | 11,504 |   |
|      Interest                expense                                |   |                                 | 5,634   |   |     |   | 4,303 |   |
|      Net                interest income                             |   |                                 | 7,881   |   |     |   | 7,201 |   |
|      Provision                for loan losses                       |   |                                 | 45      |   |     |   | 201 |   |
|      Net                interest income after prov. for loan losses |   |                                 | 7,836   |   |     |   | 7,000 |   |
|      Non-interest                income                             |   |                                 | 1,838   |   |     |   | 2,025 |   |
|      Non-interest                expense                            |   |                                 | 7,448   |   |     |   | 6,671 |   |
|      Income                before income taxes                      |   |                                 | 2,226   |   |     |   | 2,354 |   |
|      Income                tax expense                              |   |                                 | 666     |   |     |   | 821 |   |
|      Net                income                                      |   | $                                    | 1,560   |   |     | $      | 1,533 |   |
|                                                                                         |   |                                 |    |   |     |   |   |   |
|                                                                                         |   |                                 |    |   |     |   |   |   |
| **Balance                Sheet Data:**                                                       |   |                                 |    |   |     |   |   |   |
|                                                                                         |   |                                 |    |   |     |   |   |   |
|      Total                assets                                    |   | $                                    | 296,573 |   |     | $      | 268,672 |   |
|      Loans,                net                                      |   |                                 | 201,421 |   |     |   | 178,444 |   |
|      Loans                held for sale                             |   |                                 | 5,916   |   |     |   | 6,077 |   |
|      Allowance                for loan losses                       |   |                                 | 2,215   |   |     |   | 2,170 |   |
|      Investment                securities held to maturity          |   |                                 | 13,422  |   |     |   | 10,694 |   |
|      Investment                securities held for sale             |   |                                 | 34,034  |   |     |   | 32,903 |   |
|      Deposits                                                       |   |                                 | 258,042 |   |     |   | 236,811 |   |
|      Borrowings                                                     |   |                                 | 0       |   |     |   | 0 |   |
|      Shareholders'                equity                            |   |                                 | 37,210  |   |     |   | 30,214 |   |
|                                                                                         |   |                                 |    |   |     |   |   |   |
| **Performance                Ratios:**                                                       |   |                                 |    |   |     |   |   |   |
|                                                                                         |   |                                 |    |   |     |   |   |   |
|      Return                on average assets                        |   |                                 | 0.71    | %      |     |   | 0.82 | % |
|      Return                on average equity                        |   |                                 | 5.53    | %      |     |   | 7.56 | % |
|      Net                interest margin                             |   |                                 | 3.92    | %      |     |   | 4.20 | % |
|      Efficiency                ratio                                |   |                                 | 76.6    | %      |     |   | 72.3 | % |
|                                                                                         |   |                                 |    |   |     |   |   |   |
| **Asset                Quality:**                                                            |   |                                 |    |   |     |   |   |   |
|                                                                                         |   |                                 |    |   |     |   |   |   |
|      Nonaccrual                loans                                |   |                                 | 217     |   |     |   | 236 |   |
|      OREO                property                                   |   |                                 | 0       |   |     |   | 0 |   |
|      Net                charge-offs (recoveries)                    |   |                                 | 0       |   |     |   | 2 |   |
|      Allowance                for loan losses to total loans        |   |                                 | 1.09    | %      |     |   | 1.20 | % |
|      Nonperforming                loans to total loans              |   |                                 | 0.11    | %      |     |   | 0.13 | % |
|                                                                                         |   |                                 |    |   |     |   |   |   |
|                                                                                         |   |                                 |    |   |     |   |   |   |
| **Per                Share Data:**                                                           |   |                                 |    |   |     |   |   |   |
|                                                                                         |   |                                 |    |   |     |   |   |   |
|      Earnings                per share- Basic                       |   | $                                    | 0.31    |   |     | $      | 0.41 |   |
|      Earnings                per share- Diluted                     |   | $                                    | 0.30    |   |     | $      | 0.35 |   |
|      Book                value per share                            |   | $                                    | 7.64    |   |     | $      | 7.73 |   |
|      Tangible                book value                             |   | $                                    | 7.39    |   |     | $      | 7.42 |   |

----

|                                                                                                               |                                          |   |                                  |    |   |                                 |    |    |                                  |   |
|--------------------------------------------------------------------------------------------------------------------|-----------------------------------------------|--------|---------------------------------------|---------|--------|--------------------------------------|---------|---------|---------------------------------------|--------|
|                                                                                                               |                                          |   | **September                30, 2007** |    |   | **December                31, 2006** |    |    | **September                30, 2006** |   |
|                                                                                                               |                                          |   | **(unaudited)**                       |    |   |                                 |    |    | **(unaudited)**                       |   |
| ASSETS                                                                                                             |                                          |   |                                  |    |   |                                 |    |    |                                  |   |
|                                                                                                               |                                          |   |                                  |    |   |                                 |    |    |                                  |   |
| Cash                and due from banks                                                                             |                                          | $      | 8,982                                 |    |   | $                                    | 22,662  |    |                                  | $      | 10,200 |   |
| Federal                funds sold                                                                             |                                          |   | 14,200                                |    |   |                                 | 5,900   |    |                                  |   | 14,800 |   |
|          Total                cash and cash equivalents               |                                          |   | 23,182                                |    |   |                                 | 28,562  |    |                                  |   | 25,000 |   |
|                                                                                                               |                                          |   |                                  |    |   |                                 |    |    |                                  |   |   |   |   |
| Loans                held for sale,net                                                                        |                                          |   | 5,916                                 |    |   |                                 | 5,003   |    |                                  |   | 6,077 |   |
| Investment                securities held to maturity (Approximate maket value                                     |                                          |   |                                  |    |   |                                 |    |    |                                  |
| of                $13,344 in September 2007, $10,552 in December 2006                                              |                                          |   | 13,422                                |    |   |                                 | 10,485  |    |                                  |   | 10,694 |   |
| and                $10,794 in September 2006                                                                       |                                          |   |                                  |    |   |                                 |    |    |                                  |   |   |   |
| Investments                available for sale                                                                      |                                          |   | 34,034                                |    |   |                                 | 38,914  |    |                                  |   | 32,903 |   |
|                                                                                                               |                                          |   |                                  |    |   |                                 |    |    |                                  |   |   |   |   |
| Loans                receivable                                                                               |                                          |   | 203,778                               |    |   |                                 | 192,571 |    |                                  |   | 180,749 |   |
|                                                                                                               | Less                allowance for loan losses |   |                                  | (2,215  | )      |                                 |    | (2,170  | )                                     |   |   | (2,170 | ) |
|                                                                                                               | Deferred                fees                  |   |                                  | (142    | )      |                                 |    | (136    | )                                     |   |   | (135 | ) |
|                                                                                                               |                                          |   |                                  |    |   |                                 |    |    |                                  |   |   |   |   |
| Net                loans receivable                                                                                |                                          |   | 201,421                               |    |   |                                 | 190,265 |    |                                  |   | 178,444 |   |
|                                                                                                               |                                          |   |                                  |    |   |                                 |    |    |                                  |   |   |   |   |
| Premises                and equipment,net                                                                          |                                          |   | 6,474                                 |    |   |                                 | 6,295   |    |                                  |   | 6,230 |   |
| Goodwill,                net                                                                                       |                                          |   |                                  | 1,191   |   |                                 |    | 1,191   |                                  |   |   | 1,191 |   |
| Bank                owned life insurance                                                                           |                                          |   | 8,023                                 |    |   |                                 | 5,801   |    |                                  |   | 5,679 |   |
| Accrued                interest receivable                                                                         |                                          |   | 1,557                                 |    |   |                                 | 1,508   |    |                                  |   | 1,387 |   |
| Deferred                tax asset                                                                             |                                          |   | 857                                   |    |   |                                 | 805     |    |                                  |   | 760 |   |
| Other                assets                                                                                        |                                          |   |                                  | 496     |   |                                 |    | 599     |                                  |   |   | 307 |   |
|                                                                                                               |                                          |   |                                  |    |   |                                 |    |    |                                  |   |   |   |   |
|                                                                                                               |                                          |   | $                                     | 296,573 |   |                                 | $       | 289,428 |                                  |   | $ | 268,672 |   |
|                                                                                                               | Total                assets                   |   |                                  |    |   |                                 |    |    |                                  |   |   |   |   |
|                                                                                                               |                                          |   |                                  |    |   |                                 |    |    |                                  |   |   |   |   |
| LIABILITIES                AND STOCKHOLDERS' EQUITY                                                                |                                          |   |                                  |    |   |                                 |    |    |                                  |   |   |   |
|                                                                                                               |                                          |   |                                  |    |   |                                 |    |    |                                  |   |   |   |   |
| LIABILITIES                                                                                                        |                                          |   |                                  |    |   |                                 |    |    |                                  |   |   |   |   |
|      Deposits:                                                                            |                                          |   |                                  |    |   |                                 |    |    |                                  |   |   |   |   |
|      Non-interest                bearing deposits-demand                                  |                                          | $      | 46,928                                |    |   | $                                    | 51,015  |    |                                  | $      | 42,533 |   |
|      Interest                bearing deposits                                             |                                          |   |                                  |    |   |                                 |    |    |                                  |   |   |   |
|        Now,M/M                and savings                                       |                                          |   | 173,506                               |    |   |                                 | 163,590 |    |                                  |   | 157,537 |   |
|      Certificates                of deposit,under $100,000                                |                                          |   | 21,530                                |    |   |                                 | 20,617  |    |                                  |   | 18,380 |   |
|      Certificates                of deposit, $100,000 and over                            |                                          |   | 16,078                                |    |   |                                 | 14,999  |    |                                  |   | 18,361 |   |
|                                                                                                               |                                          |   |                                  |    |   |                                 |    |    |                                  |   |   |   |   |
|                                                                                                               | **Total                deposits**             |   |                                  | 258,042 |   |                                 |    | 250,221 |                                  |   |   | 236,811 |   |
|                                                                                                               |                                          |   |                                  |    |   |                                 |    |    |                                  |   |   |   |   |
| Accrued                interest payable                                                                            |                                          |   | 749                                   |    |   |                                 | 697     |    |                                  |   | 648 |   |
| Taxes                payable                                                                                       |                                          |   |                                  | 32      |   |                                 |    | 34      |                                  |   |   | 70 |   |
| Other                liabilities                                                                                   |                                          |   |                                  | 540     |   |                                 |    | 580     |                                  |   |   | 929 |   |
|                                                                                                               |                                          |   |                                  |    |   |                                 |    |    |                                  |   |   |   |   |
|                                                                                                               | **Total                liabilities**          |   |                                  | 259,363 |   |                                 |    | 251,532 |                                  |   |   | 238,458 |   |
|                                                                                                               |                                          |   |                                  |    |   |                                 |    |    |                                  |   |   |   |   |
| STOCKHOLDERS'                EQUITY                                                                                |                                          |   |                                  |    |   |                                 |    |    |                                  |   |   |   |
|        Preferred                stock- 1,000,000 shares authorized, none issued |                                          |   | -                                     |    |   |                                 | -       |    |                                  |   | - |   |
|      *Common                stock- authorized 9,000,000 shares                            |                                          |   |                                  |    |   |                                 |    |    |                                  |   |   |   |
|       of                no par value;issued and outstanding, 4,873,138               |                                          |   |                                  |    |   |                                 |    |    |                                  |   |   |   |
|      shares                at September 30, 2007, 4,997,490 at December 31,               |                                          |   | 37,011                                |    |   |                                 | 36,916  |    |                                  |   | 28,226 |   |
|      2006                and 4,104,358 at September 30, 2006                              |                                          |   |                                  |    |   |                                 |    |    |                                  |   |   |   |
|      Retained                earnings                                                     |                                          |   | 477                                   |    |   |                                 | 1,166   |    |                                  |   | 2,358 |   |
|      Accumulated                other comprehensive loss                                  |                                          |   | (278                                  | )       |   |                                 | (186    | )       |                                  |   | (370 | ) |
|                                                                                                               |                                          |   |                                  |    |   |                                 |    |    |                                  |   |   |   |   |
| **Total                stockholders` equity**                                                                      |                                          |   | 37,210                                |    |   |                                 | 37,896  |    |                                  |   | 30,214 |   |
|                                                                                                               |                                          |   |                                  |    |   |                                 |    |    |                                  |   |   |   |   |
| **Total                liabilities and stockholders' equity**                                                      |                                          | $      | 296,573                               |    |   | $                                    | 289,428 |    |                                  | $      | 268,672 |   |
|                                                                                                               |                                          |   |                                  |    |   |                                 |    |    |                                  |   |   |   |   |
| *Restated                to reflect 5% Stock Dividend                                                              |                                          |   |                                  |    |   |                                 |    |    |                                  |   |   |   |

----

|                                                                                |   | **Three                  months ended** |   |   | **Three                  months ended** |   |   | **Nine                  months ended** |   |   | **Nine                  months ended** |   |
|-------------------------------------------------------------------------------------|--------|-----------------------------------------|--------|--------|-----------------------------------------|--------|--------|----------------------------------------|--------|--------|----------------------------------------|--------|
|                                                                                |   | **Sept.                  30, 2007**     |   |   | **Sept.                  30, 2006**     |   |   | **Sept.                  30, 2007**    |   |   | **Sept.                  30, 2006**    |   |
|                                                                                |   | **(unaudited)**                         |   |   | **(unaudited)**                         |   |   | **(unaudited)**                        |   |   | **(unaudited)**                        |   |
| **Interest                  Income:**                                               |   |                                    |   |   |                                    |   |   |                                   |   |   |                                   |   |
|                                                                                |   |                                    |   |   |                                    |   |   |                                   |   |   |                                   |   |
|     Loans,                  including fees                      |   | $                                       | 3,816  |   |                                    | $      | 3,602  |                                   |   | $      | 10,978                                 |   |   | $ | 10,024 |   |
|     Investment                  securities                      |   |                                    | 628    |   |                                    |   | 489    |                                   |   |   | 1,955                                  |   |   |   | 1,406 |   |
|     Federal                  funds sold                         |   |                                    | 196    |   |                                    |   | 27     |                                   |   |   | 543                                    |   |   |   | 50 |   |
|     Interest                  bearing deposits with other banks |   |                                    | 10     |   |                                    |   | 8      |                                   |   |   | 39                                     |   |   |   | 24 |   |
| Total                  interest income                                              |   |                                    | 4,650  |   |                                    |   | 4,126  |                                   |   |   | 13,515                                 |   |   |   | 11,504 |   |
|                                                                                |   |                                    |   |   |                                    |   |   |                                   |   |   |                                   |   |   |   |   |   |
| **Interest                  Expense:**                                              |   |                                    |   |   |                                    |   |   |                                   |   |   |                                   |   |   |   |   |   |
|                                                                                |   |                                    |   |   |                                    |   |   |                                   |   |   |                                   |   |   |   |   |   |
|      Deposits                                              |   |                                    | 1,924  |   |                                    |   | 1,576  |                                   |   |   | 5,632                                  |   |   |   | 4,049 |   |
|      Federal                  funds purchased              |   |                                    | -      |   |                                    |   | -      |                                   |   |   | -                                      |   |   |   | 1 |   |
|      Federal                  Home Loan Bank advances      |   |                                    | -      |   |                                    |   | 113    |                                   |   |   | 2                                      |   |   |   | 253 |   |
| Total                  interest expense                                             |   |                                    | 1,924  |   |                                    |   | 1,689  |                                   |   |   | 5,634                                  |   |   |   | 4,303 |   |
|                                                                                |   |                                    |   |   |                                    |   |   |                                   |   |   |                                   |   |   |   |   |   |
| Net                  interest income                                                |   |                                    | 2,726  |   |                                    |   | 2,437  |                                   |   |   | 7,881                                  |   |   |   | 7,201 |   |
|                                                                                |   |                                    |   |   |                                    |   |   |                                   |   |   |                                   |   |   |   |   |   |
| Provision                  for loan losses                                          |   |                                    | 45     |   |                                    |   | 75     |                                   |   |   | 45                                     |   |   |   | 201 |   |
|                                                                                |   |                                    |   |   |                                    |   |   |                                   |   |   |                                   |   |   |   |   |   |
| Net                  interest income after                                          |   |                                    |   |   |                                    |   |   |                                   |   |   |                                   |   |   |   |   |   |
|      provision                  for                        |   |                                    |   |   |                                    |   |   |                                   |   |   |                                   |   |   |   |   |   |
|      loan                  losses                          |   |                                    | 2,681  |   |                                    |   | 2,362  |                                   |   |   | 7,836                                  |   |   |   | 7,000 |   |
|                                                                                |   |                                    |   |   |                                    |   |   |                                   |   |   |                                   |   |   |   |   |   |
| **Non-Interest                  Income:**                                           |   |                                    |   |   |                                    |   |   |                                   |   |   |                                   |   |   |   |   |   |
|                                                                                |   |                                    |   |   |                                    |   |   |                                   |   |   |                                   |   |   |   |   |   |
|      Service                  fees on deposit accounts     |   |                                    | 85     |   |                                    |   | 67     |                                   |   |   | 255                                    |   |   |   | 217 |   |
|      Gains                  on sales of mortgage loans,net |   |                                    | 330    |   |                                    |   | 657    |                                   |   |   | 1,168                                  |   |   |   | 1,476 |   |
|      Other                  income                         |   |                                    | 151    |   |                                    |   | 117    |                                   |   |   | 415                                    |   |   |   | 332 |   |
| Total                  Non-Interest Income                                          |   |                                    | 566    |   |                                    |   | 841    |                                   |   |   | 1,838                                  |   |   |   | 2,025 |   |
|                                                                                |   |                                    |   |   |                                    |   |   |                                   |   |   |                                   |   |   |   |   |   |
| **Non-Interest                  Expense**                                           |   |                                    |   |   |                                    |   |   |                                   |   |   |                                   |   |   |   |   |   |
|                                                                                |   |                                    |   |   |                                    |   |   |                                   |   |   |                                   |   |   |   |   |   |
|      Salaries                  and employee benefits       |   |                                    | 1,354  |   |                                    |   | 1,290  |                                   |   |   | 3,948                                  |   |   |   | 3,646 |   |
|      Occupancy                  expense                    |   |                                    | 496    |   |                                    |   | 390    |                                   |   |   | 1,418                                  |   |   |   | 1,178 |   |
|      Advertising                  & business promotion |   |                                    | 81     |   |                                    |   | 136    |                                   |   |   | 308                                    |   |   |   | 437 |   |
|      Stationery                  and supplies              |   |                                    | 68     |   |                                    |   | 59     |                                   |   |   | 204                                    |   |   |   | 163 |   |
|      Data                  processing                      |   |                                    | 127    |   |                                    |   | 112    |                                   |   |   | 388                                    |   |   |   | 318 |   |
|      Other                  operating expense              |   |                                    | 421    |   |                                    |   | 347    |                                   |   |   | 1,182                                  |   |   |   | 929 |   |
| Total                  Non-Interest Expense                                         |   |                                    | 2,547  |   |                                    |   | 2,334  |                                   |   |   | 7,448                                  |   |   |   | 6,671 |   |
|                                                                                |   |                                    |   |   |                                    |   |   |                                   |   |   |                                   |   |   |   |   |   |
| Income                  before provision for taxes                                  |   |                                    | 700    |   |                                    |   | 869    |                                   |   |   | 2,226                                  |   |   |   | 2,354 |   |
|                                                                                |   |                                    |   |   |                                    |   |   |                                   |   |   |                                   |   |   |   |   |   |
| **Provision                  for Income Taxes**                                     |   |                                    | 196    |   |                                    |   | 296    |                                   |   |   | 666                                    |   |   |   | 821 |   |
|                                                                                |   |                                    |   |   |                                    |   |   |                                   |   |   |                                   |   |   |   |   |   |
| **Net                  income**                                                     |   | $                                       | 504    |   |                                    | $      | 573    |                                   |   | $      | 1,560                                  |   |   | $ | 1,533 |   |
|                                                                                |   |                                    |   |   |                                    |   |   |                                   |   |   |                                   |   |   |   |   |   |
| *Per                  share data                                                    |   |                                    |   |   |                                    |   |   |                                   |   |   |                                   |   |   |   |   |   |
|      Net                  income basic                     |   | $                                       | 0.10   |   |                                    | $      | 0.15   |                                   |   | $      | 0.31                                   |   |   | $ | 0.41 |   |
|      Net                  income diluted                   |   | $                                       | 0.10   |   |                                    | $      | 0.13   |                                   |   | $      | 0.30                                   |   |   | $ | 0.35 |   |
|                                                                                |   |                                    |   |   |                                    |   |   |                                   |   |   |                                   |   |   |   |   |   |
| *Restated                  to reflect 5% Stock Dividend                             |   |                                    |   |   |                                    |   |   |                                   |   |   |                                   |   |   |   |   |   |