Prosperity Bancshares, Inc.(R) Recognized for Outstanding Earnings Growth

HOUSTON, July 28 /PRNewswire-FirstCall/ -- Prosperity Bancshares, Inc.(R) , the parent company of Prosperity Bank(R) has been named to the Keefe, Bruyette & Woods, Inc. 2006 Honor Roll for achieving 10 years of growth in earnings per share.

"We are pleased and honored to be included, again, in the KBW Honor Roll," said David Zalman, President and Chief Executive Officer of Prosperity Bancshares. "We continue to believe that our focus on results and our people to people banking model will lead to long term superior performance."

The KBW Honor Roll acknowledges financial institutions that have continually reported increases in earnings per share regardless of the banking environment in the last decade. Forty companies in the United States posted a record that enabled them to be included on the Honor Roll. Prosperity Bancshares had a median annual growth rate in earnings per share of 16 percent, compared to the Honor Roll median performance of 14 percent. From 2000 through 2005, Prosperity Bancshares' stock price recorded a 24 percent compound annual growth rate compared to the Honor Roll compound annual growth rate of 19 percent.

KBW Investor Conference

Prosperity Bancshares, Inc. will be presenting at the Keefe Bruyette & Woods Honor Roll and Seventh Annual Community Bank Investor Conference in New York on Wednesday, August 2, 2006 at 10:00 am Eastern Time. Participants will include David Zalman, Chairman and Chief Executive Officer; Dan Rollins, President and Chief Operating Officer; David Hollaway, CPA, Chief Financial Officer; and Chris Bagley, Chief Credit Officer.

A live audio of the presentation will be simultaneously webcast and will be accessible at http://www.kbw.com/news/conference_investor.html . The presentation will be archived for 60 days after the presentation. A link to the webcast will also be available on Prosperity's website at http://www.prosperitybanktx.com/ .

Prosperity Bancshares, Inc.(R)

Prosperity Bancshares(R), a $4.6 billion Houston, Texas based regional financial holding company, formed in 1983, was named to the Keefe Bruyette & Woods, Inc. 2006 Honor Roll for achieving exceptional earnings per share growth for the past 10 years. Other recent honors include being named to the Sandler O'Neill & Partners 2005 Bank and Thrift Small All Stars, listed in US Banker's August 2005 Top 100 Publicly Traded Mid-Tier Banks, ranked #2 out of 195 publicly traded companies in the 2005 Stephens, Inc. Bank and Thrift Performance Matrix and the Houston Chronicle's Houston 100 list.

Operating under a community banking philosophy, Prosperity seeks to develop broad customer relationships based on service and convenience. Prosperity offers a variety of traditional loan and deposit products to its customers, which consist primarily of consumers and small and medium sized businesses. In addition to established banking products, Prosperity offers a complete line of services including: Internet Banking services at http://www.prosperitybanktx.com/ , Retail Brokerage Services, MasterMoney Debit Cards, and 24 hour voice response banking. Prosperity currently operates eighty-nine (89) full service banking locations, thirty-eight (38) in the Houston CMSA; sixteen (16) in the Corpus Christi area; eleven (11) in the Dallas area; five (5) in the Austin area; two (2) in the East Texas area; and seventeen (17) in fifteen contiguous counties south and southwest of Houston generally along the NAFTA highway.

Prosperity Bank(R) operates the following full service banking centers: Austin Area -- Allandale Congress Lakeway Oak Hill Research Blvd Dallas / Fort Worth Area -- Abrams Centre Camp Wisdom Kiest Preston Road Turtle Creek Westmoreland Blooming Grove Cedar Hill Corsicana Ennis Red Oak Corpus Christi Area -- Airline Carmel Everhart Northwest Saratoga Water Street Woodlawn Alice Aransas Pass Kingsville Mathis Port Aransas Portland Rockport Sinton East Texas Area -- Crockett Grapeland Houston Area -- Aldine Bellaire Cinco Ranch CityWest Copperfield Cypress Downtown Fairfield Gladebrook Heights Highway 6 Holcombe Katy Medical Center Memorial Pecan Grove Post Oak River Oaks SW Medical Center Sugar Land Tanglewood Waugh Drive Westheimer Woodcreek Uptown Angleton Clear Lake Cleveland Dayton Galveston Hitchcock Liberty Magnolia Mont Belvieu Needville Sweeny West Columbia Winnie South Texas Area -- Bay City Beeville Cuero East Bernard Edna El Campo Goliad Gonzales Hallettsville Palacios Port Lavaca Seguin Victoria Victoria - North Wharton Yoakum Yorktown

"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: This release contains, and the remarks by our management on the conference call may contain, forward-looking statements within the meaning of the securities laws that are based on current expectations, assumptions' estimates and projections about Prosperity Bancshares(R), and its subsidiaries. These forward-looking statements are not guarantees of future performance and are subject to risks and uncertainties, many of which are outside of Prosperity's control, that may cause actual results to differ materially from those expressed or implied by the forward-looking statements. These risks and uncertainties include but are not limited to the risk that the businesses of Prosperity and Texas United will not be integrated successfully or such integration may be more difficult, time-consuming or costly than expected; expected revenue synergies and cost savings from the merger may not be fully realized or realized within the expected time frame; revenues following the merger may be lower than expected; deposit attrition, operating costs, customer loss and business disruption following the merger, including, without limitation, difficulties in maintaining relationships with employees, may be greater than expected; the ability to obtain regulatory approvals of the merger on the proposed terms and schedule; the failure of Prosperity's or Texas United's shareholders to approve the merger agreement; continue to provide products and services that appeal to our customers; access to debt and equity capital markets we may be limited or not available; and our sales objectives may not be achieved. Other risks include the possibility that credit quality could deteriorate; actions of competitors; changes in laws and regulations (including changes in governmental interpretations of regulations and changes in accounting standards); customer and consumer demand, including customer and consumer response to marketing; effectiveness of spending, investments or programs; fluctuations in the cost and availability of supply chain resources; economic conditions, including currency rate fluctuations and interest rate fluctuations; weather; and the stock price volatility associated with "small-cap" companies. These and various other factors are discussed in our most recent Annual Report on Form 10-K and other reports and statements we have filed with the SEC.

Copies of Prosperity Bancshares's(R) SEC filings may be downloaded from the Internet at no charge from http://www.prosperitybanktx.com/ .