News Release - August 12, 2004

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FOR IMMEDIATE RELEASE

CHRISTIANA BANK AND TRUST COMPANY TO CONFORM ACCOUNTING TREATMENT OF TAX BENEFITS ARISING FROM STOCK OPTION EXERCISES TO FASB 109

GREENVILLE, DE, August 12, 2004-Christiana Bank and Trust Company (OTC BB: CBTD) (the "Bank") will conform its presentation of certain beneficial tax items (the "Tax Benefit") to Statement of Financial Accounting Standards No. 109, Accounting for Income Taxes ("FASB 109") and related accounting guidance. Conforming revisions will affect the first two quarters of 2004 by transferring the Tax Benefit from the "Federal Income Taxes" expense line in the Bank's income statements for those quarters and applying it instead directly to the Bank's balance sheet as additional paid-in-capital for the respective quarters.

The Bank's accounting practice had been to reduce income tax expense on the Bank's income statement for the tax benefit associated with the difference between the exercise price of a stock purchase option and the market price of the Bank's stock at the time of exercise (less any previously deducted expenses related to the option or its exercise). The conforming revisions will necessarily reduce the Bank's reported net income for the first two quarters of 2004, relative to reported figures, in amounts corresponding to the revised application of the Tax Benefit. Since the Bank's prior presentation of the Tax Benefit had the benefit flowing to the Bank's balance sheet from the income statement as retained earnings, the conforming revisions result in no change to total stockholders' equity or book value for the respective periods or to any aspect of the Bank's cash flow and have no effect on the taxes paid or owed by the Bank.

Conforming revisions per FASB 109 yield the following changes to reported net income: Q1, 2004-reported net income of $137 thousand revised to $111 thousand, reflecting a reduction of $26 thousand and yielding a reduction in earnings per share of $.02 per diluted share from $.11 to $.09; Q2, 2004-reported net income of $278 thousand revised to $217 thousand, reflecting a reduction of $61 thousand and yielding a reduction in earnings per share of $.05 per diluted share from $.22 to $.17. By comparison, in 2003, reported net income was $101 thousand or $.10 per diluted share for the first quarter and $178 thousand or $.17 per diluted share for the second quarter. Book value per basic share remains unchanged, and as previously reported, at $11.02 as of June 30, 2004.

The Bank intends to incorporate the conforming revisions for the first two quarters of 2004 in its report for the third quarter, which will be made in October 2004.

THE COMPANY

Christiana Bank and Trust Company, headquartered in Greenville, Delaware, is listed on the OTC Bulletin Board under the symbol "CBTD." The bank provides commercial banking as well as trust and asset management services from locations in Greenville and Wilmington, Delaware. In addition, Christiana Corporate Services, Inc., a wholly owned subsidiary, provides commercial domicile services in Delaware and Nevada.