2008-06-27 23:57:11 -

- The Board of Directors of Malaga Financial Corporation (OTCBB:MLGF) announced today the declaration of a cash dividend in the amount of 8 cents per share to shareholders of record on July 11, 2008. According to Randy Bowers, President and CEO, the dividend will be paid out on or about July 16, 2008. This dividend represents the 16th consecutive quarterly cash dividend paid by the company. The company's subsidiary, Malaga Bank, continues to be well capitalized and credit quality remains high.

Malaga Bank is a full-service community bank headquartered on the Palos Verdes Peninsula with branch offices located on the Peninsula, in Torrance and now in San Pedro. For over 23 years, Malaga has been delivering not only competitive

banking services to residents and businesses of the South Bay, but also real estate loan products custom-tailored to consumers and investors. As the largest community bank in the South Bay, Malaga is proud of its continuing tradition of relationship-based banking and legendary customer service. The Bank's web site is located at www.malagabank.com.

Malaga Financial Corporation
Randy Bowers
President and Chief Executive Officer
310-375-9000
rbowers@malagabank.com