Merrill Merchants Bancshares, Inc. Announces Receipt of Nasdaq Letter of Reprimand

  
    
  
  
    
      Merrill Merchants Bancshares, Inc. (the “Company”) 
      (Nasdaq: MERB) today announced that it received a letter of reprimand 
      from Nasdaq’s Listing Qualifications 
      Department on October 12, 2006. The Company was not in compliance with 
      Marketplace Rule 4350(d)(2) during the period between September 23, 2005 
      and May 4, 2006.
    
    
      Michael T. Shea, an existing member of the Company’s 
      board of directors, was appointed to the Company’s 
      audit committee, effective May 4, 2006. Mr. Shea’s 
      appointment filled the vacancy on the audit committee created by Susan 
      Singer, who resigned from the Company’s board 
      of directors on September 23, 2005. Prior to Mr. Shea’s 
      appointment, the Company’s audit committee 
      consisted of two independent directors rather than the three independent 
      directors required under Nasdaq Marketplace Rule 4350(d)(2) as a result 
      of Ms. Singer’s resignation.
    
    
      Nasdaq acknowledged in the same letter that, as a result of Mr. Shea’s 
      appointment, the Company had regained compliance and the matter is now 
      closed.
    
  
Merrill Merchants Bancshares, Inc. (the "Company") (Nasdaq: MERB)
today announced that it received a letter of reprimand from Nasdaq's
Listing Qualifications Department on October 12, 2006. The Company was
not in compliance with Marketplace Rule 4350(d)(2) during the period
between September 23, 2005 and May 4, 2006.

   Michael T. Shea, an existing member of the Company's board of
directors, was appointed to the Company's audit committee, effective
May 4, 2006. Mr. Shea's appointment filled the vacancy on the audit
committee created by Susan Singer, who resigned from the Company's
board of directors on September 23, 2005. Prior to Mr. Shea's
appointment, the Company's audit committee consisted of two
independent directors rather than the three independent directors
required under Nasdaq Marketplace Rule 4350(d)(2) as a result of Ms.
Singer's resignation.

   Nasdaq acknowledged in the same letter that, as a result of Mr.
Shea's appointment, the Company had regained compliance and the matter
is now closed.