HOUSTON, Texas - Sterling Bancshares, Inc. (Nasdaq: SBIB), today announced that its Board of Directors increased the quarterly cash dividend 11% to $.050 per share (an annual rate of $0.20 per share) of common stock. This is the eleventh consecutive year Sterling Bancshares has increased its dividend, since going public in 1992. The dividend, declared yesterday, is payable February 20, 2004 to shareholders of record on February 6, 2004.

With assets of $3.2 billion, Sterling Bancshares, Inc. is a Houston-based bank holding company that operates 37 banking offices in the greater metro areas of Houston, Dallas, and San Antonio. Sterling Bancshares 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.