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Media - Graham Painter                      December 29, 2003
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HOUSTON, December 29, 2003 - For the second time in a row, FORTUNE Magazine has included Sterling Bank in its list of the 100 Best Companies to Work For.

The bank, a subsidiary of Sterling Bancshares, Inc.(NASDAQ: SBIB), ranked 27th nationally in the magazine's 2004 survey of the best companies to work for in America. Sterling Bank was the highest ranked of Houston-based companies and third in Texas. FORTUNE's Best Companies to Work For issue hits the newsstands January 5 and is available now at www.fortune.com.

FORTUNE's list is compiled by the Great Places to Work Institute. About a thousand firms express interest in being on the list by providing basic information on benefits and work environment. The Institute narrows this down to about 300 firms, then conducts confidential, random surveys of their employees to identify the top 100.

"This is a tribute to each one of our employees," said J. Downey Bridgwater, Sterling Bank's president and chief executive officer. "Our appearance on the list a second time speaks to the exceptional personal contribution each Sterling Banker commits to making this a valued workplace."

Employees agree. "Sterling Bank invests in their employees in a way that makes it easier to serve our customers well. They try to make sure employees are in the right position and that they have the right training to help them progress." Trudy Navarre, Vice President - Office Manager, Eastside Office, San Antonio.

"Sterling Bank offers a variety of classes and courses to assist each employee to reach their full potential. Sterling also listens to the needs and wants of their employees when making decisions that would affect them." Maria D. Luna, Front Line Manager, Gulf Freeway Office, Houston.

About Sterling Bank

Sterling Bank specializes in serving owner-operated businesses, offering the personal feel of a community bank with a full range of financial services. The bank also provides capital equipment leasing through its SilverMark Capital division. In 2003, the bank was named to the Houston Business Journal's list of the best places to work in Houston and received a "Best" Award from the American Society of Training and Development.

Sterling Bank's parent, Sterling Bancshares, Inc., is a Houston-based bank holding company that operates 37 banking offices in the greater metropolitan areas of Houston, Dallas, and San Antonio. Sterling Bank celebrates its 30th anniversary in 2004. It went public in 1992 with assets of $255 million and has grown dramatically to more than $3 billion in assets today.

Editor's Note: Sterling Bancshares' common stock is traded through the Nasdaq National Market System under the symbol SBIB. For more information on Sterling Bancshares, Inc., please visit the company's website at www.banksterling.com.