Company Contact:  Charles Jarrett                    Donna P. Gardner
                  President & COO                    VP/Treasurer
                  Don Kiser, VP & CPO                (360) 423-9800

               COWLITZ BANCORPORATION ANNOUNCES THAT FIRST QUARTER
                       RESULTS WILL BE BELOW EXPECTATIONS

         LONGVIEW, WA March 30, 1999 - Cowlitz  Bancorporation  (NASDAQ:  CWLZ),
the holding  company for Cowlitz Bank and Business  Finance  Corporation,  today
announced   that  first  quarter  net  income  would  fall  short  of  analyst's
expectations.  First  quarter  earnings  will be in a range  of $.01 to $.02 per
share. The reduction in previously  expected net income for 1999's first quarter
is primarily  due to  additional  provision for loan losses and the opening of a
loan office in Vancouver, Washington.

         The September 1998  acquisition of Business Finance  Corporation  (BFC)
diversified  Cowlitz'  lending  programs  economically  and  geographically  and
provided  additional  income for  Cowlitz in 1998.  During the first  quarter of
1999,  the Company has  determined  that  approximately  $350,000 in receivables
purchased by BFC may not be collectible. These receivables have been charged off
and the company has taken a corresponding increase in provisions for loan losses
in the first quarter.

         "Early in  February,  we opened a new loan office in  Vancouver,  WA to
expand Cowlitz' market; however, start up costs are impacting early 1999 results
and a normal  phasing-in  period  will  pass  before  this  office  begins to be
profitable,"  said  Charles  Jarrett,  President  and Chief  Operating  Officer.
Vancouver  is located in Clark  County,  which is  considered  on of the fastest
growing counties in the United States.

         "The lending  environment  in Cowlitz County has been slower than usual
this  winter,  and loan  volume for early 1999 will be below  year-ago  levels,"
noted Don Kiser,  Vice President and Chief Financial  Officer.  "Cowlitz Bank is
the dominant lender in Cowlitz County, its primary lending market."

         "Our talented staff is devoting  additional  time in marketing  efforts
with the expectation that these situations will improve, leading to a resumption
of growth later this year.  We are  dedicated to  providing  the best  available
financial services to our local communities," Jarrett added.

         At December 31, 1998,  Cowlitz reported total assets of $178.3 million,
loans of $130.2  million,  and total deposits of $122.4  million.  Tangible book
value equaled $6.95 per share.  Cowlitz has paid four  quarterly  cash dividends
since its Initial Public Offering in March 1998.

         Cowlitz Bancorporation's wholly-owned subsidiary,  Cowlitz Bank, is the
only community bank headquartered in Cowlitz County - which is 40 miles north of
Portland, Oregon. The bank offers commercial banking services primarily to small
and  medium  sized  businesses,  professionals  and retail  customers.  Cowlitz'
Business  Finance  Corporation  subsidiary  provides  asset based  financing  to
companies  throughout the Western  United States.  CWLZ shares closed at $7.0625
per share yesterday, March 29, 1999.

NOTE:  Transmitted on PR Newswire at   p.m. PST, March 30, 1999.