Silicon Valley Bank Provides Financing to Napa Valley Affordable Housing Projects

SANTA CLARA, Calif., August 12, 2004 - Silicon Valley Bank, the primary subsidiary of Silicon Valley Bancshares (Nasdaq: SIVB), announced it provided $6.4 million in construction and permanent financing for the development of two affordable-living, family housing projects in Calistoga and Napa, Calif. Calistoga's Saratoga Manor II and Napa's Magnolia Park Townhomes will offer affordable housing alternatives for 47 low-income families. Construction on the projects is scheduled for completion by October 2005.

"Silicon Valley Bank is committed to improving the communities in which we live and work," said Christine Carr, senior vice president, Silicon Valley Bank. "Housing agencies like Burbank Housing Development Corporation, Calistoga Affordable Housing and Napa Valley Community Housing make an enormous impact on the lives of individuals and families. SVB is proud to be an important part of each project's success. We're dedicated to community development financing and look forward to working closely with local housing agencies to improve people's standard of living in Northern California."

Calistoga's Saratoga Manor II is the second phase of an existing 22-unit single-family home development. Sponsored by Burbank Housing Development Corporation and Calistoga Affordable Housing, Inc., Saratoga Manor II will feature a total of 18 two-, three- and four-bedroom single-family homes. A self-help housing project, each Saratoga Manor II family must contribute 30 construction hours per week towards the development of their new community. All homes in the community have been sold, with the buyers selected by lottery from a group of almost 70 pre-qualified families. Complete with single car garages and landscaped front yards, Saratoga Manor II reserved six homes for families earning no more than 80 percent of the area's median income in Napa County. The remaining twelve homes were sold to farm workers earning up to 50 percent of the area's median income.

Sponsored by Napa Valley Community Housing, Magnolia Park Townhomes will provide 29 affordable housing units in Napa. Featuring a functional community room and children's playground, Magnolia Park will be a home for individuals and families earning up to 50 to 60 percent of the area's median income in Napa. Fourteen of the homes will be reserved for local farm workers. The community includes a mix of two story, three- and four-bedroom townhomes, single story studios, and one- and two-bedroom flats, each with their own porch and balcony.

In addition to the Napa Valley projects, Silicon Valley Bank received a $60,000 Affordable Housing Program grant from the Federal Home Loan Bank of San Francisco in June 2004. The funds will be used to support the 13th and Julian Street renovation project in San Jose, Calif. Sponsored by Silicon Valley Habitat for Humanity, the project calls for the renovation of two historic Victorian homes into four affordable for-sale housing units and will be completed in Fall 2004.

Silicon Valley Bank has a tradition of community involvement and support. SVB's Community Development Finance Practice is dedicated to providing Bay Area for- and not-for profit affordable housing developers with financing for both single- and multi-family affordable housing projects. Silicon Valley Bank's Community Development Finance Group has provided over $50 million in financing to ten affordable housing projects in the counties of Alameda, Napa, San Francisco, San Mateo, Santa Clara and Sonoma since June 2002. The group has developed strategic partnerships with the California Housing Finance Agency (CalHFA) and the California Community Reinvestment Corporation (CCRC).

About Silicon Valley Bank
Silicon Valley Bank provides diversified financial services to emerging growth and mature companies in the technology, life sciences and private equity markets, as well as the premium wine industry. Through its focus on specialized markets and extensive knowledge of the people and business issues driving them, Silicon Valley Bank provides a level of service and partnership that measurably impacts its clients' success. Founded in 1983 and headquartered in Santa Clara, Calif., the company serves more than 9,500 clients across the country through 26 regional offices. More information on the company can be found at www.svb.com.