Cornerstone Bancorp, Inc. Announces Regulatory Approval of Merger

Merrill J. Forgotson, President of Cornerstone Bancorp,
Inc., announced today that NewAlliance Bancshares, Inc. had
received the required final regulatory approvals from both the
Connecticut Banking Department and the FDIC to acquire Cornerstone
Bancorp. Shareholders of Cornerstone Bancorp in August approved the
Agreement and Plan of Merger, dated as of April 12, 2005, which
provides for the merger of Cornerstone Bancorp, Inc. into NewAlliance
Bancshares, Inc. and the simultaneous merger of Cornerstone Bank into
NewAlliance Bank. The cash-and-stock transaction, valued at
approximately $48.7 million, is expected to be consummated at the
beginning of 2006.
   In Connecticut, Cornerstone Bancorp, through its subsidiary
Cornerstone Bank, operates from three full-service locations in
Stamford, one full-service location in Greenwich, Norwalk and
Westport. The Bancorp also operates one business development office in
Norwalk and four limited service mobile branches. The Bancorp's common
stock is traded on the American Stock Exchange under the symbol CBN.

   The statements contained in this press release that are not
historical are "forward-looking statements" within the meaning of
Section 27A of the Securities Act of 1933, as amended, and Section 21E
of the Securities Exchange Act of 1934, as amended. Examples of such
forward-looking statements include, without limitation, statements
regarding expectations for earnings, credit quality, and other
financial and business matters. When used in this report, the words
"anticipate," "plan," "believe," "estimate," "expect" and similar
expressions as they relate to the Company or its management are
intended to identify forward-looking statements. All forward-looking
statements involve risks and uncertainties. Actual results may differ
materially from those discussed in, or implied by, the forward-looking
statements as a result of certain factors, including but not limited
to, competitive pressures on loan and deposit product pricing; other
actions of competitors; changes in economic conditions; technological
changes; the extent and timing of actions of the Federal Reserve
Board, including changes in monetary policies and interest rates;
customer deposit disintermediation; changes in customers' acceptance
of the Bank's products and services; and the extent and timing of
legislative and regulatory actions and reforms. The forward-looking
statements contained in this report speak only as of the date on which
such statements are made.