HOUSTON, Texas - - Sterling Bancshares, Inc. (Nasdaq: SBIB), today announced that its Board of Directors declared a quarterly cash dividend of $.05 per share of common stock. The dividend declared is payable August 20, 2004, to shareholders of record on August 6, 2004.

Sterling Bancshares, Inc. is a Houston-based bank holding company that operates 37 community-banking offices in the greater metro areas of Dallas, Houston and San Antonio. Sterling's common stock is traded through the Nasdaq National Market System under the symbol SBIB. For more information on Sterling Bancshares, please visit the company's web site at www.banksterling.com.