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                    Columbia Bancorp: Dividend News Release



PRESS RELEASE
For Immediate Release - December 19, 1997


FOR MORE INFORMATION, CONTACT:
John A. Scaldara, Jr., CFO and Secretary
(410)465-4800



COLUMBIA BANCORP ANNOUNCES DIVIDEND

        Columbia Bancorp (the "Company") announced this day an increase in its
quarterly common stock cash dividend from $.12 per share to $.14 per share, a
16.7% increase.  Specifically, the Board of Directors of the Company authorized
and declared a quarterly cash dividend on common stock of $.14 per share on
December 18, 1997.  The dividend will be paid on January 16, 1998 to
stockholders of record at the close of business on January 5, 1998.

        Mr. John M. Bond, Jr., President and Chief Executive Officer, commented
upon the dividend, indicating that the increase in the dividend reflected
continued optimism regarding the long-term success of the Company.  Mr. Bond,
Jr. also commented upon recent performance considerations, noting that the
aggressive expansion effort undertaken during the year, including the opening
of three, full-service de novo branches, has resulted in an increase in
overhead, but has contributed substantially to the Company's franchise value. 
Further, Mr. Bond, Jr. noted that while loan growth experienced during the nine
months ended September 30, 1997 was strong, growth during the fourth quarter of
1997 has slowed, especially in the Company's residential development and
construction portfolio, its highest yielding portfolio, reflecting local market
conditions .

        Columbia Bancorp, headquartered in Columbia, Maryland, is a bank
holding company and parent company of The Columbia Bank, a commercial bank. 
The Columbia Bank currently operates thirteen banking offices and provides a
full range of financial services to consumers and businesses.  Columbia
Bancorp's Common Stock is traded on the National Market tier of The Nasdaq
Stock MarketSM under the symbol "CBMD".







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