Article: Pacific Northwest Bancorp and Bank of the Northwest Agree to Merge.

Business Editors

SEATTLE--(BUSINESS WIRE)--July 22, 2002

Pacific Northwest Bancorp (Nasdaq:PNWB) and Bank of the Northwest (Nasdaq:BKNW) announced today the signing of a definitive agreement to merge Bank of the Northwest into Pacific Northwest Bank.

Bank of the Northwest is a commercial bank with assets of $354 million with five banking offices in the metropolitan Portland, Oregon market area. It is anticipated that the transaction will be completed in the fourth quarter of 2002, pending regulatory approvals and the approval of the stockholders of Bank of the Northwest.

In the merger, Pacific Northwest Bancorp will issue 1.75 million ...

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