Bay View
                                   Capital Corporation
                   News Release
                   ------------


                                      NYSE:        BVC
                                      Web Site:    www.bayviewcapital.com
                                      Contact:     Mark E. Lefanowicz
                                                   (650) 294-7730
                                                   Mike Churchill
                                                   (650) 294-7710


FOR IMMEDIATE RELEASE


October 2, 2000


             BAY VIEW CONFIRMS ANTICIPATED ACTION BY FEDERAL RESERVE

     San Mateo,  California - Bay View Capital Corporation (NYSE: BVC) confirmed
today  that  although  it has  sufficient  cash to pay the  September  30,  2000
dividend on its 9.76% Capital  Securities (NYSE:  BVS), the Federal Reserve Bank
of San  Francisco  has denied the  Company's  request  for  approval to make the
distribution.

     As previously  announced,  pursuant to the terms of the Capital Securities,
the  Company  has  deferred  distributions  until such time as  approval  can be
obtained. The Company fully intends to continue to seek such approval;  however,
it cannot  predict when approval may be obtained.  During this deferral  period,
distributions to which holders are entitled will continue to accrue at an annual
rate of  9.76% of the  liquidation  amount  of $25 per  Capital  Security,  plus
accumulated additional  distributions at the same rate, compounded quarterly, on
any unpaid distributions (to the extent permitted by law).

     Bay View Capital  Corporation is a diversified  financial  services holding
company with over $6 billion in assets.  Headquartered in San Mateo, California,
it is the parent company of Bay View Bank, N.A. and its  subsidiaries,  Bay View
Acceptance  Corporation,  Bay  View  Commercial  Finance  Group,  and  Bay  View
Franchise Mortgage Acceptance Company.


                           Forward-Looking Statements

     This press release contains  forward-looking  statements which describe the
Company's  future  plans,  strategies  and  expectations.   All  forward-looking
statements are based on assumptions and involve risks and uncertainties, many of
which are beyond  the  Company's  control  and which may cause  actual  results,
performance or  achievements  to differ  materially  from  anticipated  results,
performance  or   achievements.   Factors  that  might  affect   forward-looking
statements include, among other things:

o    the demand for the Company's products;
o    actions taken by the Company's competitors;
o    tax rate changes, new tax laws and revised tax law interpretations;



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o    adverse changes occurring in the securities markets;
o    inflation and changes in prevailing  interest  rates that reduce margins or
     the fair value of the financial instruments held;
o    economic or business  conditions,  either  nationally  or in the  Company's
     market areas, that are worse than expected;
o    legislative  or  regulatory  changes that  adversely  affect the  Company's
     business;
o    the inability to sell or securitize assets;
o    the timing,  impact and other  uncertainties of asset sales or acquisitions
     and  the  Company's   success  or  failure  in  the  integration  of  their
     operations;
o    the ability to enter new geographic and product  markets  successfully  and
     capitalize on growth opportunities;
o    technological changes that are more difficult or expensive than expected;
o    increases  in  delinquencies  and  defaults  by  borrowers  and other  loan
     delinquencies;
o    increases in the provision for losses on loans and leases;
o    the inability to sustain or improve the performance of subsidiaries;
o    the  inability to achieve the financial  goals in the  Company's  strategic
     plans,  including any  financial  goals  related to both  contemplated  and
     consummated asset sales or acquisitions;
o    the outcome of lawsuits or regulatory disputes;
o    credit and other risks of lending, leasing and investment activities; and
o    the inability to use net operating loss carryforwards currently held by the
     Company.

     As a result of the above,  the Company cannot assure that future results of
operations or financial  condition or any other matters will be consistent  with
those  presented in any  forward-looking  statements.  Accordingly,  the Company
cautions you not to rely on these forward-looking  statements.  The Company does
not  undertake,  and  specifically  disclaims  any  obligation,  to update these
forward-looking statements, which speak only as of the date made.


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