February 2, 1998

Announcement

Middlefield Bancorp Limited has increased its investment in Porter Chadburn plc through the purchase of an additional 1,000,000 shares. Its total interest in Porter Chadburn is now approximately 5.3% of issued and outstanding ordinary shares. Porter Chadburn is headquartered in London, England and is engaged in the packaging industry, primarily in North America. Its shares trade on the London Stock Exchange.

Middlefield Bancorp Limited is a Canadian corporation engaged in merchant banking activities. Managed by the Middlefield Group, the Company is dedicated to building long term value for its shareholders by seeking out undervalued situations. Middlefield Bancorp's common shares are listed on the Toronto Stock Exchange under the symbol "MBN".

For further information, contact in Toronto, Canada:

Dean Orrico
Vice President

(416) 362-0714