Vail Banks, Inc. Acquires United Valley Bank in Estes Park, Colorado

Jul 17, 2000, 01:00 ET from Vail Banks, Inc.

    VAIL, Colo., July 17 /PRNewswire/ -- Vail Banks, Inc. (Nasdaq:   VAIL)
 announced today the closing of the acquisition of Estes Bank Corporation and
 its wholly owned subsidiary, United Valley Bank of Estes Park, Colorado.
 United Valley Bank, which operates branches in Estes Park, Granby and Grand
 Lake, Colorado, has assets of $80 million.  Vail Banks, Inc., including this
 acquisition will have total assets of $550 million.
     E. B. Chester, Chairman of Vail Banks, commented, "We are extremely
 fortunate to have the customers and associates of United Valley Bank join the
 WestStar Bank family.  United Valley Bank is a high quality financial
 institution, and their addition will have a very positive influence on
 WestStar Bank.  We are particularly fortunate to have Jack Haselbush,
 Chairman, and Brad Sishc, President of United Valley Bank, continue to be
 associated with our company.  Jack Haselbush will serve Vail Banks as a
 strategic advisor and a member of its Board of Directors.  Brad Sishc will
 become President of the Estes Park Region of WestStar Bank.  With the guidance
 of these gentleman, we are confident that we will continue the tradition of
 United Valley Banks as a high performance, high asset quality, customer-
 centered bank."
     Jack Haselbush, former Chairman of United Valley Bank, stated, "Our
 company has grown and prospered through service to its customers.  We realize
 that to continue to offer our customers the finest and most technically
 advanced products and services, the scale of our business must increase.  We
 are extremely fortunate to find a partner such as Vail Banks, which faces the
 same challenge of balancing the necessary scale of their business with a
 genuine desire to remain a locally focused institution.  No changes are
 anticipated in our employees or in our commitment to customer service.  We do
 anticipate, however, advancing the level of the products and services we offer
 and the technology through which they are offered."
     Lisa M. Dillon, President and CEO of Vail Banks, stated, "We expect this
 transaction to increase Vail Banks' net income on a per share basis from the
 outset.  Our planning for this combination contains no anticipation of cost
 efficiencies, although we expect that, over time, such efficiencies will
     Ms. Dillon went on to say, "This merger represents the first expansion of
 Vail Banks into the "front range" or "foothills" area of Colorado.  The area
 northwest of Denver is one of the fastest growing areas in Colorado. Our Board
 of Directors has made it a priority to become a significant provider of
 financial services in this area. We are fortunate to associate with such a
 fine institution and individuals to begin this process."
     Vail Banks operates WestStar Bank which serves thirteen communities on the
 western slope of Colorado, including Aspen, Avon, Breckenridge, Cedaredge,
 Delta, Dillon, Edwards, Glenwood Springs, Granby, Montrose, Telluride and Vail
 and Estes Park in the foothills of Colorado.  It has number one deposit market
 share in San Miguel County (Telluride) and Estes Park and number two share in
 Eagle County (Avon, Edwards and Vail) and in Garfield County (Glenwood Springs
 and New Castle).
     Vail Banks warns that caution should be taken in relying upon any forward-
 looking statements in this release, as they involve a number of risks and
 uncertainties that could cause actual results to differ materially from any
 such statements, including the risks and uncertainties discussed in the
 Company's Form 10-K for the year ended December 31, 1999 under the caption
 "Certain Factors Affecting Forward Looking Statements," which discussion is
 incorporated herein by reference.

SOURCE Vail Banks, Inc.