Coast Financial Holdings to Open Dunedin Branch

BRADENTON, Fla., Feb. 28  /PRNewswire-FirstCall/ -- Coast Financial Holdings, Inc. (NASDAQ:CFHI), parent company of Coast Bank of Florida, today announced that it has opened a new branch in Pinellas County.  The Dunedin branch, located at 2046 Bayshore Boulevard in Dunedin, is the company's fifth branch in Pinellas County, bringing Coast Bank's branch network to 13 locations.

"We are progressing with our expansion strategy by opening another branch in a high-growth part of Pinellas County," said Brian Peters, president and CEO.  "We are enthusiastic about the visibility of this branch location and our ability to serve customers in the community."

The Dunedin facility has a superb location with quick access to local businesses and restaurants.  "We are also pleased to announce that Sharon Dropp has joined Coast Bank and has been named branch manager of the Dunedin branch," said Peters.  "She brings seven years of branch manager experience and a team of local bankers that are anxious to serve this new market for us."

About the Company

As of December 31, 2005, Coast Financial Holdings, Inc. had $550 million in total assets and through its banking subsidiary, Coast Bank of Florida ( http://www.coastfl.com/ ), operates 13 full-service banking locations in Manatee and Pinellas counties, Florida.  Coast Bank of Florida is a commercial bank that provides full-service banking operations to its customers from its headquarters location and from branch offices in Bradenton, Palmetto, Longboat Key, Seminole, Dunedin, Kenneth City and St. Petersburg.

This press release and other statements to be made by the Company contain certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act, including but not limited to statements relating to projections and estimates of earnings, revenues, cost-savings, expenses, or other financial items; statements of management's plans, strategies, and objectives for future operations, and management's expectations as to future performance and operations and the time by which objectives will be achieved; statements concerning proposed new products and services; and statements regarding future economic, industry, or market conditions or performance.  Forward-looking statements are typically identified by words or phrases such as "believe," "expect," "anticipate," "project," and conditional verbs such as "may," "could," and "would," and other similar expressions or verbs.  Such forward-looking statements reflect management's current expectations, beliefs, estimates, and projections regarding the Company, its industry and future events, and are based upon certain assumptions made by management.  These forward-looking statements are not guarantees of future performance and necessarily are subject to risks, uncertainties, and other factors (many of which are outside the control of the Company) that could cause actual results to differ materially from those anticipated.  These risks, uncertainties, and other factors include, among others:  changes in general economic or business conditions, either nationally or in the State of Florida, changes in the interest rate environment, the Company's ability to successfully open and operate new branches and collect on delinquent loans, changes in the regulatory environment, and other risks described in the Company's Form 10-KSB for the fiscal year ended December 31, 2005 and as described from time to time by the Company in other reports filed by it with the Securities and Exchange Commission.  Any forward-looking statement speaks only to the date on which the statement is made, and the Company disclaims any obligation to update any forward-looking statement, whether as a result of new information, future events or otherwise.  If the Company does update any forward-looking statements, no inference should be drawn that the Company will make additional updates with respect to that statement or any other forward-looking statements.

   Contacts:

   Brian P. Peters, President and CEO
   
   877-COASTFL

   Brian F. Grimes, EVP and CFO
   
   877-COASTFL

   THE CEREGHINO GROUP
   CORPORATE INVESTOR RELATIONS
   5333 15TH  Avenue South, Suite 1500
   Seattle, WA 98108
   206.762.0993
   http://www.stockvalues.com/

DATASOURCE: Coast Financial Holdings, Inc.



CONTACT:  Brian P. Peters, President and CEO, , or

Brian F. Grimes, EVP and CFO, , both of Coast Financial

Holdings, +1-877-COASTFL (268-7835); or investor relations, THE CEREGHINO

GROUP, [phone], for Coast Financial Holdings



Web site:  http://www.coastfl.com/ 

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