**Press      Release**

**For      Immediate Release**

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

**(401)      847-5500**

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

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**CONSOLIDATED      BALANCE SHEETS**

|                                                                                                                                             |   | **June                  30,****2007**                    |    |   | **December                  31,**** 2006** |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------------------------------|---------|--------|-------------------------------------------------|--------|
|                                                                                                                                             |   | **(Unaudited)****(Dollars                in Thousands)** |    |
| **ASSETS**                                                                                                                                       |   |
|                                                                                                                                             |   |
| Cash                and due from banks                                                                                                           |   | $                                                        | 4,013   |   |                                            | $      | 3,705 |   |
| Short-term                investments                                                                                                            |   |                                                     | 6,080   |   |                                            |   | 3,567 |   |
| Cash                and cash equivalents                                                                                                         |   |                                                     | 10,093  |   |                                            |   | 7,272 |   |
|                                                                                                                                             |   |                                                     |    |   |                                            |   |   |   |
| Securities                available for sale, at fair value                                                                                      |   |                                                     | 6,762   |   |                                            |   | 6,614 |   |
| Securities                held to maturity, at amortized cost                                                                                    |   |                                                     | 1,777   |   |                                            |   | 1,922 |   |
| Federal                Home Loan Bank stock, at cost                                                                                             |   |                                                     | 2,884   |   |                                            |   | 2,390 |   |
| Loans                                                                                                                                            |   |                                                     | 271,975 |   |                                            |   | 258,739 |   |
| Allowance                for loan losses                                                                                                         |   |                                                     | (2,133  | )      |                                            |   | (1,973 | ) |
| Loans,                net                                                                                                                        |   |                                                     | 269,842 |   |                                            |   | 256,766 |   |
| Premises                and equipment, net                                                                                                       |   |                                                     | 5,974   |   |                                            |   | 6,099 |   |
| Accrued                interest receivable                                                                                                       |   |                                                     | 1,115   |   |                                            |   | 1,027 |   |
| Deferred                income taxes                                                                                                             |   |                                                     | 1,925   |   |                                            |   | 1,851 |   |
| Bank-owned                life insurance                                                                                                         |   |                                                     | 9,073   |   |                                            |   | 5,382 |   |
| Other                assets                                                                                                                      |   |                                                     | 670     |   |                                            |   | 1,121 |   |
| Total                assets                                                                                                                      |   | $                                                        | 310,115 |   |                                            | $      | 290,444 |   |
|                                                                                                                                             |   |
| **LIABILITIES                AND STOCKHOLDERS’ EQUITY**                                                                                    |   |
| Deposits                                                                                                                                         |   | $                                                        | 196,624 |   |                                            | $      | 192,974 |   |
| Short-term                borrowings                                                                                                             |   |                                                     | 7,000   |   |                                            |   | 2,500 |   |
| Long-term                borrowings                                                                                                              |   |                                                     | 43,449  |   |                                            |   | 31,950 |   |
| Accrued                expenses and other liabilities                                                                                            |   |                                                     | 2,360   |   |                                            |   | 3,040 |   |
| Total                liabilities                                                                                                                 |   |                                                     | 249,433 |   |                                            |   | 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 and outstanding                |   |                                                     | 49      |   |                                            |   | 49 |   |
| Additional                paid in capital                                                                                                        |   |                                                     | 47,307  |   |                                            |   | 47,258 |   |
| Retained                earnings                                                                                                                 |   |                                                     | 17,020  |   |                                            |   | 16,477 |   |
| Unearned                compensation - ESOP                                                                                                      |   |                                                     | (3,512  | )      |                                            |   | (3,643 | ) |
| Accumulated                other comprehensive loss                                                                                              |   |                                                     | (182    | )      |                                            |   | (161 | ) |
| Total                stockholders’                equity                                                                                   |   |                                                     | 60,682  |   |                                            |   | 59,980 |   |
| Total                liabilities and                stockholders’ equity                                                                   |   | $                                                        | 310,115 |   |                                            | $      | 290,444 |   |

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**CONSOLIDATED      STATEMENTS OF INCOME**

|                                                                               |   | **Three                Months Ended****June                30,** |      |   | **Six                Months Ended****June                30,** |   |
|------------------------------------------------------------------------------------|--------|------------------------------------------------------------------|-----------|--------|----------------------------------------------------------------|--------|
|                                                                               |   | **2007**                                                         |      |   | **2006**                                                       |   |   | **2007** |   |   | **2006** |   |
|                                                                               |   | **(Unaudited)****(Dollars                in Thousands)**         |      |
|                                                                               |   |                                                             |      |   |                                                           |   |   |   |   |   |   |   |
| Interest                and dividend income:                                       |   |                                                             |      |   |                                                           |   |   |   |   |   |   |   |
| Interest                and fees on                loans                           |   | $                                                                | 4,217     |   |                                                           | $      | 3,807 |   |   | $ | 8,281 |   |   | $ | 7,344 |   |
| Interest                on                securities                               |   |                                                             | 105       |   |                                                           |   | 98 |   |   |   | 209 |   |   |   | 182 |   |
| Dividends                on Federal Home Loan                Bank stock            |   |                                                             | 40        |   |                                                           |   | 42 |   |   |   | 81 |   |   |   | 79 |   |
| Interest                on certificates of                deposit                  |   |                                                             | -         |   |                                                           |   | 9 |   |   |   | - |   |   |   | 12 |   |
| Interest                on short-term                investments                   |   |                                                             | 5         |   |                                                           |   | 42 |   |   |   | 17 |   |   |   | 47 |   |
| Total                interest and dividend                income                   |   |                                                             | 4,367     |   |                                                           |   | 3,998 |   |   |   | 8,588 |   |   |   | 7,664 |   |
|                                                                               |   |                                                             |      |   |                                                           |   |   |   |   |   |   |   |   |   |   |   |
| Interest                expense                                                    |   |                                                             |      |   |                                                           |   |   |   |   |   |   |   |   |   |   |   |
| Interest                on                deposits                                 |   |                                                             | 1,277     |   |                                                           |   | 980 |   |   |   | 2,421 |   |   |   | 1,797 |   |
| Interest                on short-term                borrowings                    |   |                                                             | 157       |   |                                                           |   | 229 |   |   |   | 280 |   |   |   | 369 |   |
| Interest                on long-term                borrowings                     |   |                                                             | 462       |   |                                                           |   | 558 |   |   |   | 860 |   |   |   | 1,133 |   |
| Total                interest                expense                               |   |                                                             | 1,896     |   |                                                           |   | 1,767 |   |   |   | 3,561 |   |   |   | 3,299 |   |
|                                                                               |   |                                                             |      |   |                                                           |   |   |   |   |   |   |   |   |   |   |   |
| Net                interest income                                                 |   |                                                             | 2,471     |   |                                                           |   | 2,231 |   |   |   | 5,027 |   |   |   | 4,365 |   |
| Provision                for loan losses                                           |   |                                                             | 47        |   |                                                           |   | 12 |   |   |   | 160 |   |   |   | 32 |   |
|                                                                               |   |                                                             |      |   |                                                           |   |   |   |   |   |   |   |   |   |   |   |
| Net                interest income, after                provision for loan losses |   |                                                             | 2,424     |   |                                                           |   | 2,219 |   |   |   | 4,867 |   |   |   | 4,333 |   |
|                                                                               |   |                                                             |      |   |                                                           |   |   |   |   |   |   |   |   |   |   |   |
| Other                income:                                                       |   |                                                             |      |   |                                                           |   |   |   |   |   |   |   |   |   |   |   |
| Customer                service                fees                                |   |                                                             | 478       |   |                                                           |   | 345 |   |   |   | 915 |   |   |   | 676 |   |
| Gain                on sales of                loans                               |   |                                                             | -         |   |                                                           |   | 3 |   |   |   | - |   |   |   | 14 |   |
|        Bank-owned                life insurance |   |                                                             | 96        |   |                                                           |   | 21 |   |   |   | 191 |   |   |   | 39 |   |
| Miscellaneous                                                                      |   |                                                             | 24        |   |                                                           |   | 37 |   |   |   | 47 |   |   |   | 66 |   |
| Total                other                income                                   |   |                                                             | 598       |   |                                                           |   | 406 |   |   |   | 1,153 |   |   |   | 795 |   |
|                                                                               |   |                                                             |      |   |                                                           |   |   |   |   |   |   |   |   |   |   |   |
| Operating                expenses:                                                 |   |                                                             |      |   |                                                           |   |   |   |   |   |   |   |   |   |   |   |
| Salaries                and employee                benefits                       |   |                                                             | 1,384     |   |                                                           |   | 1,268 |   |   |   | 2,822 |   |   |   | 2,589 |   |
| Occupancy                and equipment,                net                         |   |                                                             | 312       |   |                                                           |   | 306 |   |   |   | 625 |   |   |   | 615 |   |
| Data                processing                                                     |   |                                                             | 239       |   |                                                           |   | 240 |   |   |   | 507 |   |   |   | 493 |   |
| Professional                fees                                                   |   |                                                             | 144       |   |                                                           |   | 80 |   |   |   | 265 |   |   |   | 176 |   |
| Marketing                                                                          |   |                                                             | 271       |   |                                                           |   | 236 |   |   |   | 541 |   |   |   | 475 |   |
| Other                general and                administrative                     |   |                                                             | 174       |   |                                                           |   | 182 |   |   |   | 351 |   |   |   | 432 |   |
| Total                operating                expenses                             |   |                                                             | 2,524     |   |                                                           |   | 2,312 |   |   |   | 5,111 |   |   |   | 4,780 |   |
|                                                                               |   |                                                             |      |   |                                                           |   |   |   |   |   |   |   |   |   |   |   |
| Income                before income taxes                                          |   |                                                             | 498       |   |                                                           |   | 313 |   |   |   | 909 |   |   |   | 348 |   |
|                                                                               |   |                                                             |      |   |                                                           |   |   |   |   |   |   |   |   |   |   |   |
| Provision                for income taxes                                          |   |                                                             | 214       |   |                                                           |   | 116 |   |   |   | 366 |   |   |   | 126 |   |
|                                                                               |   |                                                             |      |   |                                                           |   |   |   |   |   |   |   |   |   |   |   |
| Net                income                                                          |   | $                                                                | 284       |   |                                                           | $      | 197 |   |   | $ | 543 |   |   | $ | 222 |   |
|                                                                               |   |                                                             |      |   |                                                           |   |   |   |   |   |   |   |   |   |   |   |
| Weighted-average                shares outstanding:                                |   |                                                             |      |   |                                                           |   |   |   |   |   |   |   |   |   |   |   |
| Basic                                                                              |   |                                                             | 4,522,844 |   |                                                           |   | n/a |   |   |   | 4,519,591 |   |   |   | n/a |   |
| Diluted                                                                            |   |                                                             | 4,522,844 |   |                                                           |   | n/a |   |   |   | 4,519,591 |   |   |   | n/a |   |
|                                                                               |   |                                                             |      |   |                                                           |   |   |   |   |   |   |   |   |   |   |   |
| Earnings                per share:                                                 |   |                                                             |      |   |                                                           |   |   |   |   |   |   |   |   |   |   |   |
| Basic                                                                              |   | $                                                                | .06       |   |                                                           |   | n/a |   |   | $ | .12 |   |   |   | n/a |   |
| Basic                                                                              |   | $                                                                | .06       |   |                                                           |   | n/a |   |   | $ | .12 |   |   |   | n/a |   |