COLUMBIA, Md., August 30, 1996 -- Columbia Bancorp (the "Company")
announced this day continuation of its quarterly common stock cash dividend of
$.10 per share. Specifically, the Board of Directors of the Company authorized
and declared a quarterly cash dividend on common stock of $.10 per share on
August 30, 1996. The dividend will be paid on October 7, 1996, to stockholders
of record at the close of business on September 13, 1996.

John M. Bond, Jr., President and CEO, commented upon the announcement stating,
"The dividend reflects the Company's strong year-to-date financial results as
well as the expectation of continued sound financial performance."

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 eleven banking offices and provides a full
range of financial services to consumers and businesses. Columbia Bancorp's
Common Stock is traded on the Nasdaq - National Market System under the symbol
"CBMD."