Third Quarter 1999
For the period ended July 31, 1999

Press Release

MIDDLEFIELD BANCORP REPORTS FOR THE THIRD QUARTER
ENDING JULY 31, 1999

Message to Shareholders

Middlefield Bancorp Limited ("MBN") is pleased to report significant growth in revenue and net income during the nine months ended July 31, 1999. Revenue for the nine months ended July 31, 1999 increased 33% to $14.7 million from $11.1 million for the same period last year. This increase resulted primarily from the realization of a $2.9 million gain on the sale of the equity investment in Porter Chadburn plc in the second quarter. Earnings per share for the nine months ended July 31, 1999 increased to $0.29 compared to $0.15 per share in the same period in 1998.

During August, MBN realized a gain of approximately $0.4 million in respect of the sale of its holding of convertible notes issued by Centurion Energy International Inc. MBN purchased the notes as part of the original issue in March 1998. The Sterling division continues to pursue acquisition opportunities in the packaging sector and expects to announce an acquisition prior to year end.

Year 2000 Update

MBN has assessed the impact of the Year 2000 date change issue on operations, and, based on that assessment, has developed a plan encompassing problem item updates, replacements and Year 2000 compliance testing. The plan also addresses contingency arrangements in the event that items are not compliant by target dates. Costs associated with addressing the Year 2000 problem are not material and are being expensed. Critical systems have been determined to be compliant. Remediation plans, including testing and implementation, for non-critical systems are being carried out and are expected to be completed shortly. It is not possible to be certain that all aspects of the Year 2000 issue affecting MBN, including those related to the efforts of customers, suppliers, or other third parties, will be resolved.

Middlefield Bancorp trades on the Toronto Stock Exchange under the symbol "MBN".

September 28, 1999

CORPORATE PROFILE

Middlefield Bancorp Limited is a Canadian merchant bank managed by Middlefield Group. The Company's principal objective is to create long term shareholder value through a twofold strategy of strategic investing in businesses with strong management and exceptional prospects for longer term earnings growth and special situation investing where there is excellent potential for significant capital appreciation. Our aim is to produce a steady stream of growing earnings from strategic investments supplemented by earnings from special situation activities. MBN's board of directors and management include experienced and successful individuals who have committed their own capital to the Company.

DIRECTORS