Baylake Corp. Foregoes Dividend

STURGEON BAY, Wis., May 22, 2008 -- Baylake Corp. (OTC Bulletin Board: BYLK) -- The Board of Directors of Baylake Corp. announced their decision to forego the payment of a cash dividend on the Company's common stock that historically had been declared and paid during the second quarter of the year.

"We believe that retaining earnings and continuing to build a strong capital base is in the best interest of our shareholders at the current time," said Baylake Corp. President and Chief Executive Officer Robert J. Cera. "Our main priority and efforts continue to be focused upon reducing our unacceptably high level of non-performing assets. As soon as we are reasonably assured that meaningful progress has been made in improving both asset quality and net income, we would expect to once again resume the payment of quarterly dividends." The Company's Board of Directors is closely monitoring this situation on a quarterly basis and hopes to reinstate the dividend at the earliest appropriate time.

The Company's ability to pay dividends is subject to various factors including, among other things, sufficient earnings, available capital, board discretion and regulatory compliance (see "Market for the Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities," Part II, Item 5 of the Company's Annual Report on Form 10-K for the year ended December 31, 2007). There can be no assurance when or if the Company will resume the payment of quarterly dividends at historical levels or at all.

Baylake Corp., the holding company for Baylake Bank, serves Northeast and Central Wisconsin from 28 community financial centers throughout Brown, Door, Green Lake, Kewaunee, Manitowoc, Outagamie, Waupaca and Waushara


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Annual Report on Form 10-K for the year ended December 31, 2007.

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