PRESS RELEASE                          FOR IMMEDIATE RELEASE
                                       ---------------------
                                       Contact: Michael L. Middleton, President
                                       Telephone No.: (301) 645-5601
                                       July 25, 2002



                        TRI-COUNTY FINANCIAL CORPORATION
                       ANNOUNCES STOCK REPURCHASE PROGRAM


     Waldorf,  Maryland ...  Tri-County  Financial  Corporation (the "Company"),
announced today that it is commencing a stock  repurchase  program to acquire up
to 38,000 shares of its common stock,  which represents  approximately 5% of the
outstanding  common stock. The program will be dependent upon market  conditions
and there is no guarantee as to the exact number of shares to be  repurchased by
the Company.

     Michael L.  Middleton,  President  of the Company  stated that the Board of
Directors  has  authorized  the  repurchase  program,  which is  expected  to be
completed  within  twelve  months.  Mr.  Middleton  explained  that the Board of
Directors  considers  the common  stock to be an  attractive  investment.  It is
expected that a reduction in the amount of Company  outstanding stock would have
the effect of increasing per share earnings and return on equity.

     According to Mr.  Middleton,  the  repurchases  generally would be effected
through open market purchases and privately negotiated transactions.

     The Company is the holding company for Community Bank of Tri-County,  which
conducts business through its main office located in Waldorf, Maryland and eight
branch offices located in Waldorf, Bryans Road, Dunkirk,  Leonardtown, La Plata,
Charlotte Hall and California, Maryland.

     At March 31,  2002,  the Company had total  assets of $259  million,  total
deposits of $181 million and stockholders' equity of $26 million.