Capital Crossing Bank Shareholders Adopt Merger Agreement with Lehman Brothers Bank

  
    
  
  
    
      Capital Crossing Bank (Nasdaq: CAPX) today announced that its 
      shareholders voted to adopt the agreement and plan of merger pursuant to 
      which Lehman Brothers Bank, FSB, a subsidiary of Lehman Brothers, the 
      global investment bank, will acquire Capital Crossing. At a special 
      meeting of shareholders held earlier today, the holders of at least two 
      thirds of Capital Crossing’s common stock 
      outstanding and entitled to vote at the meeting approved the adoption of 
      the merger agreement. The merger is also subject to regulatory and 
      governmental approvals, including those of the Office of Thrift 
      Supervision, the Federal Deposit Insurance Corporation, the 
      Massachusetts Commissioner of Banks, the Massachusetts Board of Bank 
      Incorporation. The merger is also subject to a determination from the 
      Board of Governors of the Federal Reserve System that the requirements 
      under the Bank Holding Company Act of 1956, as amended, do not apply to 
      Lehman Brothers Bank by virtue of its momentary ownership of Capital 
      Crossing as a stand-alone bank prior to its merger into Lehman Brothers 
      Bank. In November 2006, the Board of Governors of the Federal Reserve 
      System determined that the requirements under the Bank Holding Company 
      Act do not apply to Lehman Brothers Bank in the case of this 
      transaction. Earlier in January, Lehman Brothers Bank received the 
      necessary approvals from the OTS and the FDIC. On January 22, 2007, a 
      public hearing was held before the Massachusetts Board of Bank 
      Incorporation pursuant to notice duly given. Pursuant to the merger 
      agreement, following approval of the transaction by the Massachusetts 
      Commissioner of Banks and the Massachusetts Board of Bank Incorporation, 
      the acquisition is expected to be completed within two business days.
    
    
      About Capital Crossing Bank
    
    
      Capital Crossing Bank is a Massachusetts-chartered, FDIC-insured trust 
      company with $1.1 billion in assets as of September 30, 2006. Capital 
      Crossing operates as a commercial bank, providing financial products and 
      services to customers through its executive and main offices in Boston, 
      its website at www.capitalcrossing.com, 
      and through its leasing subsidiary Dolphin Capital Corp. located in 
      Moberly, Missouri. Capital Crossing is a value-oriented investor in 
      whole loans and loan portfolios generally secured by commercial, 
      multi-family and one-to-four family residential real estate and other 
      business assets.
    
    
      About Lehman Brothers
    
    
      Lehman Brothers (ticker symbol: LEH), an innovator in global finance, 
      serves the financial needs of corporations, governments and 
      municipalities, institutional clients, and high net worth individuals 
      worldwide. Founded in 1850, Lehman Brothers maintains leadership 
      positions in investment banking, equity and fixed income sales, trading 
      and research, private investment management, asset management and 
      private equity. The Firm is headquartered in New York, with regional 
      headquarters in London and Tokyo, and operates in a network of offices 
      around the world. For further information about Lehman Brothers’ 
      services, products and recruitment opportunities, visit the Firm’s 
      Web site at www.lehman.com.
    
    
      This press release contains a number of forward-looking statements 
      concerning Capital Crossing's current expectations regarding Lehman 
      Brothers Bank’s acquisition of Capital 
      Crossing and the expected timetable for completing the transaction. Any 
      statements that are not statements of historical fact (including 
      statements containing the words "believes," "plans," "anticipates," 
      "expects," "estimates," "intends," "may," "projects," "will," "would," 
      and similar expressions) should also be considered to be forward-looking 
      statements. There are a number of important factors that could cause 
      actual results or events to differ materially from those indicated by 
      such forward-looking statements, including: Capital Crossing's ability 
      to successfully acquire loans at the same volume and the same yields as 
      it has historically, changes in interest rates that adversely affect its 
      business, the level of transactional income realized by Capital Crossing 
      as a result of loan and lease payoffs and the sale of real estate and 
      loans, Capital Crossing's ability to successfully diversify its asset 
      base, the level of Capital Crossing's non-performing assets, Capital 
      Crossing's ability to successfully conduct its leasing business, general 
      economic conditions in Capital Crossing's markets, as well as those 
      other factors detailed under "Item 1A. Risk Factors" in Part II of 
      Capital Crossing's Quarterly Report on Form 10-Q for the quarterly 
      period ended September 30, 2006, which important factors are 
      incorporated herein by this reference. Capital Crossing disclaims any 
      intention or obligation to update any forward-looking statements as a 
      result of developments occurring after the date of this press release.