News Releases

Peoples Bancorp Inc. Names New Chariman of the Board
Peoples Bank to Sell Banking Office in Grayson, Kentucky
Peoples Bancorp Inc. Increases Second Quarter 2008 Dividend
Peoples Bancorp Inc. Names New Chief Financial Officer
Peoples Bancorp Inc. Announces First Quarter Earnings
Peoples Bancorp Inc. Holds Annual Meeting of Shareholders
Peoples Bancorp Inc. Declares First Quarter 2008 Dividend
Peoples Bancorp Inc. Reports Fourth Quarter and 2007 Results
Peoples Bancorp Inc. Nominates Four Board Members For Re-Election

Past News Releases
- 2007
- 2006
- 2005
- 2004
- 2003

PEOPLES BANCORP INC. NAMES
NEW CHAIRMAN OF THE BOARD
___________________________________________

June 13, 2008

Contact: Mark F. Bradley
President and Chief Executive Officer
(740) 373-3155

MARIETTA, Ohio – Peoples Bancorp Inc. (“Peoples Bancorp”, Nasdaq: PEBO) announces the resignation, effective June 30, 2008, of Joseph H. Wesel as Chairman of the Board, a position he has held since 2005 and also from 1991 to 2003. Wesel, 79, will continue to serve as a director of Peoples Bancorp and its banking subsidiary Peoples Bank, National Association.

The Board of Directors appointed Richard Ferguson as Chairman of the Board effective July 1, 2008. Ferguson has served as a director of Peoples Bancorp since 2004 and as Audit Committee Chairman since 2005.

"Joe Wesel’s solid leadership over the years has been the foundation of our company’s commitment to delivering long-term shareholder value through diversified financial services,” said Mark F. Bradley, Peoples Bancorp’s President and Chief Executive Officer. “In 1991, Peoples Bancorp had total assets of $424 million and 17 offices. We now have $1.9 billion in assets and offer 50 locations for our clients. Also, Peoples Bancorp’s dividend to shareholders grew from $0.16 per share in 1991 to the current annualized rate of $0.92 per share.”

Ferguson, 61, has more than 30 years of experience in accounting and financial management. After working several years in public and private accounting, he currently owns Ferguson Consulting, LLC, a Columbus, Ohio-based professional practice that focuses on business valuations and forensic accounting services for all types of litigation.

"Richard’s extensive financial background and expertise have brought tremendous insights to our Board,” continued Bradley. “His leadership qualities have been demonstrated in addressing the many audit and compliance requirements implemented in the past several years.”

Ferguson is a Certified Public Accountant and a Certified Valuation Analyst.

Bradley summarized, “The directors and I thank Joe Wesel for his many years of leadership as Chairman and the strides made under his direction. He will continue to be a key part of our directorship and help Richard Ferguson lead us in our next stages of development.”

Peoples Bancorp Inc. is a diversified financial products and services company with $1.9 billion in assets, 50 locations and 38 ATMs in Ohio, West Virginia and Kentucky. Peoples makes available a complete line of banking, investment, insurance, and trust solutions through its financial service units – Peoples Bank, National Association; Peoples Financial Advisors (a division of Peoples Bank) and Peoples Insurance Agency, Inc. Peoples’ common shares are traded on the NASDAQ Global Select Market under the symbol “PEBO”, and Peoples is a member of the Russell 3000 index of US publicly traded companies. Learn more about Peoples at www.peoplesbancorp.com.

END OF RELEASE

PEOPLES BANK TO SELL BANKING
OFFICE IN GRAYSON, KENTUCKY
___________________________________________

May 28, 2008

Contact: Mark F. Bradley
President and Chief Executive Officer
(740) 373-3155

MARIETTA, Ohio – Peoples Bank, National Association (“Peoples Bank”), a wholly-owned subsidiary of Peoples Bancorp Inc. (NASDAQ: PEBO), announced today that it has agreed to sell its Grayson, Kentucky banking office (“Grayson office”) to First National Bank of Grayson (“First National Bank”).

"This action is consistent with our strategic plan to optimize our branch network to operate more efficiently and improve growth opportunities,” said Mark F. Bradley, Peoples Bancorp’s President and Chief Executive Officer. “We look forward to continuing to serve our customers in Boyd and Greenup counties through our full-service offices in Ashland, Russell, Greenup, and Summit.”

Under terms of the purchase and assumption agreement, First National Bank has agreed to pay $500,000 for the Grayson office’s $14.9 million in deposits, $2.9 million in loans, and fixed assets, which have an approximate book value of $225,000. The premium on deposits equates to approximately 1.85%. If total deposits of the Grayson office increase or decrease by 10% before completion of the sale, then the premium on deposits will be adjusted accordingly by $25,000 for each 10% change in deposits.

The transaction, which is subject to regulatory approval, is expected to be completed in fourth quarter 2008.

"First National Bank, established in 1902, is locally owned and operated and is excited to have the opportunity to provide financial services to the customers of Peoples Bank’s Grayson office,” said Willis H. Kelley, President and CEO of First National Bank. “We will work diligently with Peoples Bank to provide a smooth transition to its customers and strive to provide the excellent customer service our customers have come to expect.”

First National Bank of Grayson had $187 million in assets at March 31, 2008 and operates 6 offices in northeastern Kentucky’s Carter, Elliott and Morgan counties.

END OF RELEASE

Safe Harbor Statement:
This press release may contain certain forward-looking statements with respect to Peoples’ financial condition, results of operations, plans, objectives, future performance and business. Except for the historical and present factual information contained in this press release, the matters discussed in this press release, and other statements identified by words such as “expects,” “believes,” “plans,” “will,” “would,” “should,” “could” and similar expressions are forward-looking statements within the meaning of Sections 27A of the Securities Act of 1933, as amended, and Rule 175 promulgated thereunder, and 21E of the Securities Exchange Act of 1934, as amended, and Rule 3b-6 promulgated thereunder. These forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially. Factors that might cause such a difference include, but are not limited to: (1) competitive pressures among depository institutions increase significantly; (2) changes in the interest rate environment impact interest margins; (3) prepayment speeds, loan sale volumes, charge-offs and loan loss provisions; (4) general economic conditions are less favorable than expected; (5) political developments, wars or other hostilities may disrupt or increase volatility in securities markets or other economic conditions; (6) legislative or regulatory changes or actions adversely affect Peoples’ business; (7) changes and trends in the securities markets; (8) a delayed or incomplete resolution of regulatory issues; (9) the impact of reputational risk created by these developments on such matters as business generation and retention, funding and liquidity; (10) the outcome of regulatory and legal proceedings and (11) other risk factors relating to the banking industry or Peoples as detailed from time to time in Peoples’ reports filed with the Securities and Exchange Commission (“SEC”). Peoples undertakes no obligation to release revisions to these forward-looking statements or reflect events or circumstances after the date of this release. Copies of documents filed with the SEC are available free of charge at the Commission’s website at http://www.sec.gov and/or from Peoples’ website.

PEOPLES BANCORP INC. INCREASES
SECOND QUARTER 2008 DIVIDEND
___________________________________________

May 9, 2008

Contact: Mark F. Bradley
President and Chief Executive Officer
(740) 373-3155

MARIETTA, Ohio - The Board of Directors of Peoples Bancorp Inc. (“Peoples”) (NASDAQ: PEBO) yesterday declared a cash dividend of $0.23 per share, reflecting a 4.5% increase from the $0.22 dividend per share paid in both the first quarter of 2008 and second quarter of 2007.

The annualized 2008 dividend of $0.92 equates to a yield of 3.95% based on Peoples Bancorp’s closing stock price of $23.32 on May 8, 2008.

"Peoples Bancorp has a 42-year history of consecutive dividend growth,” said Mark F. Bradley, President and Chief Executive Officer. “The Board's action to increase the second quarter dividend reflects our commitment to enhancing total shareholder return and positions Peoples for another year of increased dividends, assuming capital levels and market conditions allow.”

The second quarter dividend is payable on July 1, 2008, to shareholders of record at June 16, 2008 and represents a pay out of approximately $2.4 million based on 10.3 million shares outstanding at May 8, 2008.

Peoples recently reported net income of $5.6 million or $0.55 per diluted share for the first quarter of 2008, which produced a return on average equity and average assets of 11.00% and 1.21%, respectively.

END OF RELEASE

PEOPLES BANCORP INC. NAMES NEW
CHIEF FINANCIAL OFFICER
___________________________________________

May 8, 2008

Contact: Mark F. Bradley
President and Chief Executive Officer
(740) 373-3155

MARIETTA, Ohio – Peoples Bancorp Inc. (Nasdaq: PEBO) announces the appointment of Edward G. Sloane to the Executive Vice President position of Chief Financial Officer and Treasurer of Peoples Bancorp Inc. (“Peoples Bancorp”) and its subsidiary Peoples Bank, National Association, (“Peoples Bank”).

"Ed’s accounting experience, combined with his strategic and financial skills, makes him a great choice to lead our accounting and financial reporting areas,” said Mark F. Bradley, President and Chief Executive Officer of Peoples Bancorp and Peoples Bank. “He will be a solid addition to our executive leadership team.”

Sloane, 47, will become Peoples Bancorp’s principal financial officer effective with his first day of employment on May 21, 2008.

Since 2006, Sloane has been Senior Vice President of Strategic Planning and Analysis for WesBanco, Inc. in Wheeling, WV. From 1991 to 2006, Sloane served as Controller of WesBanco, Inc. He has over 25 years of experience in the financial services industry in various roles of increasing responsibility in the accounting, finance, merger and acquisitions, asset/liability management and strategic planning areas. Sloane is also a Certified Public Accountant.

Sloane succeeds Carol A. Schneeberger, who has served as Peoples Bancorp’s and Peoples Bank’s Chief Financial Officer and Treasurer since April 2007, while also maintaining her duties as Executive Vice President of Operations.

"Carol’s leadership as our interim CFO has allowed us the benefit of a longer search period to identify and hire the right person for Peoples Bancorp,” continued Bradley. “Our directors and I thank Carol for her leadership and the strides made under her direction. Her extra efforts have produced positive results. Carol will continue to be a key part of our executive leadership team and also help Ed make an effective and efficient transition into his new role as our CFO.”

END OF RELEASE

PEOPLES BANCORP INC. ANNOUNCES
FIRST QUARTER EARNINGS
___________________________________________

April 24, 2008

Contact: Carol Schneeberger
Chief Financial Officer and Treasurer
(740) 373-3155

MARIETTA, Ohio - Peoples Bancorp Inc. (“Peoples”) (NASDAQ: PEBO) announced first quarter 2008 net income of $5.6 million, or $0.55 per diluted share, compared to $5.6 million, or $0.53, for the first quarter of 2007. First quarter 2008 earnings produced a return on average equity and assets of 11.00% and 1.21%, respectively, compared to 11.59% and 1.22% for the same quarter in 2007.

"We are pleased to report higher first quarter earnings per share, improved net interest margin and net interest income, as well as strong deposit growth,” said Mark F. Bradley, President and Chief Executive Officer. “We have seen an increase in nonperforming loans since year-end due primarily to one large commercial real estate loan being placed on nonaccrual status. However, we believe the specific loan is adequately collateralized, and our capital levels remain strong.”

During the first quarter of 2008, management focused on reducing exposures to credit and interest rate risks by selling $7.2 million of preferred stocks issued by the Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation and two US agency collateralized mortgage obligations with an aggregate book value of $7.6 million. The preferred stocks were sold to reduce Peoples’ exposure to those entities. The sale of the collateralized mortgage obligations was part of management’s current strategy to lessen the exposure to a future rising interest rate environment within Peoples’ investment portfolio. Peoples also sold several small-lot mortgage-backed securities. The net impact of the portfolio management initiatives produced a net gain of $159,000. Peoples also recognized a gain of $134,000 from the partial redemption of its equity interest in Visa USA.

Net interest income grew to $14.3 million for the quarter ended March 31, 2008, from $13.9 million for the prior quarter, while net interest margin expanded 11 basis points to 3.51%. Compared to the first quarter of 2007, net interest income was up 6% in the first quarter of 2008 and net interest margin expanded 19 basis points. Peoples’ average earning assets, although up from a year ago, were down nearly $13 million from the fourth quarter of 2007, due to a higher level of commercial loan payoffs over the last several months.

"The recent downward shift in short-term interest rates along with a reduction in certain deposit rates has enhanced net interest income and margin,” said Carol A. Schneeberger, Chief Financial Officer and Treasurer. “However, future margin expansion may be limited as the downward repricing of assets may outpace the reduction in rates on our funding sources.”

In the first quarter of 2008, total non-interest income was $8.2 million compared to $8.1 million a year ago. First quarter trust and investment income increased 9% year-over-year, due mostly to a 5% gain in the market value of assets under management since March 31, 2007. Peoples also saw e-banking revenues grow 11% to $0.9 million from sustained increases in debit card activity. These improvements were partially offset by a slight decrease in deposit account service charges attributable to fewer non-sufficient funds fees and lower deposit account fees. Compared to the fourth quarter of 2007, non-interest income was up 8% in the first quarter of 2008, due mostly to the receipt of annual performance based insurance commission income, which is typically earned during the first quarter of each year.

"We continue to see the benefits of our strategic actions designed to grow and diversify non-interest revenues,” said Schneeberger. “Our wealth management group has produced another strong quarter, despite the recent downturn in the financial markets that lowered the value of managed assets compared to year-end 2007. Insurance revenues are in line with our expectations considering the challenges from the tighter pricing margins caused by insurance companies reducing premiums to attract market share. Our ongoing commitment to increasing cross-sales through a client relationship approach continues to provide additional opportunities to grow revenues.”

Non-interest expense totaled $13.7 million through the first three months of 2008, versus $13.3 million for the same period in 2007. First quarter salary and benefit costs were up 4% year-over-year and accounted for over half of the increase in total non-interest expense, largely attributable to increased sales-based compensation and additional equity-based compensation. Other key contributing factors to higher non-interest expense were increased occupancy expenses, including repairs, maintenance and utility costs, and e-banking expense, primarily online banking costs. Compared to the fourth quarter of 2007, non-interest expense increased $1.4 million, due mostly to higher performance based incentive compensation, medical insurance costs and equity-based compensation, coupled with the lower fourth quarter franchise tax expense which resulted from the settlement of a state tax audit.

During the first quarter of 2008, gross portfolio loan balances decreased $5.2 million, from $1.12 billion at December 31, 2007. Commercial loan balances were down $6.8 million, as commercial real estate loan payoffs outpaced new production. Residential real estate loan balances were flat for the quarter, while Peoples’ serviced loan portfolio increased $2.0 million, to $178.8 million at March 31, 2008.

"As anticipated, loan balances declined slightly in the first quarter due to commercial loan payoffs,” added Schneeberger. “While lending opportunities exist within our markets, we remain focused on loan quality rather than quantity, even more so during this time of economic uncertainty, which could limit near-term loan growth.”

Peoples’ provision for loan losses was $1.4 million for the first quarter of 2008, versus $1.5 million and $0.6 million in the fourth and first quarters of 2007, respectively. The provision for loan losses is based on management’s quarterly evaluation of the loan portfolio and is directionally consistent with changes in Peoples’ overall loan quality. At March 31, 2008, non-performing loans totaled $17.5 million, or 1.57% of total loans, compared to $9.4 million, or 0.83%, at December 31, 2007 and $6.0 million, or 0.53%, at March 31, 2007. Nonaccrual loans increased $8.1 million during the first quarter, due mostly to Peoples placing a single $7 million commercial real estate loan into nonaccrual status. Management believes the loan is adequately collateralized and that it has been appropriately considered in establishing the allowance for loan losses at March 31, 2008. The allowance for loan losses was $16.0 million, or 91.2% of nonperforming loans, at March 31, 2008, versus $15.7 million, or 168.0%, at year-end 2007, and $14.5 million, or 241.3%, at March 31, 2007. In the first quarter of 2008, net loan charge-offs were $1.2 million, up $0.6 million from a year ago, due primarily to the charge-off of $1 million related to the previously mentioned commercial real estate loan placed into nonaccrual status during the quarter.

Retail deposit balances, which exclude brokered deposits, grew $82.4 million during the first quarter of 2008, due almost entirely to growth in interest-bearing deposits. Compared to year-end 2007, retail certificate of deposit balances were up $49.8 million, or 10%, at March 31, 2008, largely attributable to Peoples attracting funds from customers outside its primary market area instead of using higher-costing brokered deposits. Interest-bearing demand deposits also rose $20.3 million, or 11%, during the first quarter of 2008, reflecting seasonal changes in public funds from tax revenues. Non-interest-bearing deposits also grew $2.4 million since year-end 2007, from a $9.3 million increase in consumer deposit balances that offset a $7.1 million decline in commercial balances. The overall deposit growth in the first quarter of 2008 allowed Peoples to reduce higher rate brokered certificates of deposit balances by $19.8 million and contributed to the $61.7 million, or 13%, overall reduction in borrowed funds since year-end.

"Loan quality and higher loan loss provisions are challenging many in the financial services industry,” summarized Bradley. “However, we are pleased with first quarter earnings, deposit growth, and net interest margin improvement. We remain committed to growing the company in a disciplined manner that will allow us to deliver sustainable, long-term growth in earnings and dividends.”

Conference Call to Discuss Earnings:
Peoples will conduct a facilitated conference call to discuss first quarter 2008 results of operations today at 11:00 a.m. Eastern Daylight Time, with members of Peoples’ executive management participating. Analysts, media and individual investors are invited to participate in the conference call by calling (800) 860-2442. A simultaneous Webcast of the conference call audio will be available online via the “Investor Relations” section of Peoples’ website, www.peoplesbancorp.com. Participants are encouraged to call or sign in at least 15 minutes prior to the scheduled conference call time to ensure participation and, if required, to download and install the necessary software. A replay of the call will be available on Peoples’ website in the “Investor Relations” section for one year.

Safe Harbor Statement:
This news release may contain certain forward-looking statements with respect to Peoples’ financial condition, results of operations, plans, objectives, future performance and business. Except for the historical and present factual information contained in this news release, the matters discussed in this news release, and other statements identified by words such as “feel,” “expect,” “believe,” “plan,” “will,” “would,” “should,” “could” and similar expressions are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Rule 175 promulgated thereunder, and Section 21E of the Securities Exchange Act of 1934, as amended, and Rule 3b-6 promulgated thereunder. These forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially. Factors that might cause such a difference include, but are not limited to: (1) deterioration in the credit quality of Peoples’ loan portfolio could occur due to a number of factors, which may adversely impact the provision for loan losses; (2) competitive pressures among financial institutions or from non-financial institutions, which may increase significantly; (3) changes in the interest rate environment, which may adversely impact interest margins; (4) changes in prepayment speeds, loan originations, sale volumes, and charge-offs, which may be less favorable than expected and adversely impact the amount of interest income generated; (5) general economic conditions, either national or in the states in which Peoples and its subsidiaries do business, which may be less favorable than expected; (6) political developments, wars or other hostilities, which may disrupt or increase volatility in securities markets or other economic conditions; (7) legislative or regulatory changes or actions, which may adversely affect the business of Peoples and its subsidiaries; (8) adverse changes in the conditions and trends in the financial markets, which may adversely affect the fair value of securities within Peoples’ investment portfolio; (9) a delayed or incomplete resolution of regulatory issues that could arise; (10) ability to receive dividends from subsidiaries; (11) the impact of reputational risk created by these developments on such matters as business generation and retention, funding and liquidity; (12) the costs and effects of regulatory and legal developments, including the outcome of regulatory or other governmental inquiries and legal proceedings and results of regulatory examinations; and (13) other risk factors relating to the banking industry or Peoples as detailed from time to time in Peoples’ reports filed with the Securities and Exchange Commission (“SEC”), including those risk factors included in the disclosures under the heading “ITEM 1A. RISK FACTORS” of Peoples’ Annual Report on Form 10-K for the fiscal year ended December 31, 2007. Peoples undertakes no obligation to update these forward-looking statements to reflect events or circumstances after the date of this news release or to reflect the occurrence of unanticipated events, except as required by applicable legal requirements. Copies of documents filed with the SEC are available free of charge at the SEC’s website at http://www.sec.gov and/or from Peoples’ website.

Please click here to view the complete earnings release.

PEOPLES BANCORP INC. HOLDS
ANNUAL MEETING OF SHAREHOLDERS
___________________________________________

April 11, 2008

Contact: Mark F. Bradley
President and Chief Executive Officer
(740) 373-3155

MARIETTA, Ohio - The Annual Meeting of the Shareholders of Peoples Bancorp Inc. (“Peoples”) (Nasdaq: PEBO) was held April 10, 2008, in Marietta, Ohio.

The meeting was well attended and at the meeting, shareholders re-elected Board members Mark F. Bradley, Frank L. Christy, Theodore P. Sauber, and Joseph H. Wesel to serve as directors of Peoples for three-year terms expiring in 2011.

President and Chief Executive Officer Mark F. Bradley reviewed Peoples’ 2007 results of operations and financial performance. Bradley commented during the meeting, “Despite a difficult economic environment, we are pleased to have delivered dividend growth and positive earnings in 2007 for our shareholders.”

Peoples will release first quarter 2008 earnings before the market opens on April 24, 2008, and conduct a facilitated conference call to discuss first quarter results of operations at 11:00 a.m. Eastern Daylight Time on the same date. Analysts, media and individual investors are invited to participate in the conference call by calling 800-860-2442. A simultaneous webcast of the conference call audio can be accessed via the Investor Relations section on Peoples’ website, www.peoplesbancorp.com, where a replay will also be available.

Peoples Bancorp Inc., a diversified financial products and services company with $1.9 billion in assets, makes available a complete line of banking, investment, insurance, and trust solutions through 50 locations and 38 ATMs in Ohio, West Virginia and Kentucky. Peoples’ financial service units include Peoples Bank, National Association; Peoples Financial Advisors (a division of Peoples Bank) and Peoples Insurance Agency, Inc. Peoples’ common shares are traded on the NASDAQ Global Select Market under the symbol “PEBO”, and Peoples is a member of the Russell 3000 index of US publicly traded companies. Learn more about Peoples at www.peoplesbancorp.com.

END OF RELEASE

PEOPLES BANCORP INC.
DECLARES FIRST QUARTER 2008 DIVIDEND
___________________________________________

February 15, 2008

Contact: Mark F. Bradley
President and Chief Executive Officer
(740) 373-3155

MARIETTA, Ohio - The Board of Directors of Peoples Bancorp Inc. (“Peoples”) (NASDAQ: PEBO) yesterday declared a cash dividend of $0.22 per share payable on April 1, 2008, to shareholders of record at March 17, 2008.

The first quarter dividend reflects a payout of approximately $2.3 million based on 10.3 million shares outstanding at February 14, 2008.

"The Board's declaration of the first quarter dividend reflects our commitment to shareholder return, our strong capital level and is consistent with our emphasis on dividends,” said Mark F. Bradley, President and CEO.

The annualized 2008 dividend of $0.88 equates to a yield of 3.74% based on Peoples Bancorp’s closing stock price of $23.50 on February 14, 2008.

END OF RELEASE

PEOPLES BANCORP INC. REPORTS FOURTH QUARTER
AND 2007 RESULTS
____________________________________________

January 24, 2008

Contact: Carol A. Schneeberger
Chief Financial Officer and Treasurer
(740) 373-3155

MARIETTA, Ohio –Peoples Bancorp Inc. (“Peoples”) (NASDAQ: PEBO) announced fourth quarter 2007 net income of $2.2 million, or $0.21 per diluted share, compared to $4.8 million, or $0.44, for the fourth quarter of 2006. For 2007, net income totaled $18.3 million or $1.74 per diluted share compared to $21.6 million or $2.01 per diluted share for 2006.

The lower earnings for both the fourth quarter and full year 2007 were impacted by a $5.5 million ($3.6 million after-tax or $0.34 per diluted share) other-than-temporary impairment charge related to investments in certain securities, including preferred stocks issued by the Federal National Mortgage Association (“Fannie Mae”) and Federal Home Loan Mortgage Corporation (“Freddie Mac”) and collateralized debt obligation (“CDO”) investments. This non-cash charge for other-than-temporary impairment is comprised of a $1.3 million charge related to Fannie Mae preferred stock previously carried at $6.8 million, a $1.9 million charge related to Freddie Mac preferred stock previously carried at $8.5 million, a $0.1 million charge related to a single bank holding company stock held by Peoples previously carried at $0.2 million and a $2.2 million charge related to three CDO investment securities previously carried at $7.9 million. This charge was partially offset by a $782,000 ($508,000 after-tax) reduction in franchise tax expense resulting from the adjustment to Peoples’ tax reserves to reflect the settlement agreement with the Tax Commissioner of the State of Ohio resolving certain controversies concerning Peoples’ Ohio corporation franchise tax liabilities and associated calculations for the 2002 through 2008 tax years (Fiscal years 2001-2007).

“Market values of certain investments have decreased due to increased risks within the broader credit market and erratic market liquidity,” said Mark F. Bradley, President and Chief Executive Officer. “Peoples Bancorp's capital levels mitigate the negative impact of the resulting other-than-temporary impairment charge.”

Bradley continued, “Without the impairment charges, our results in 2007 reflect success in diversifying revenues, improving operating efficiency and reducing our reliance on net interest income. Revenue growth was strong and net loan charge-offs decreased. Additionally, dividends increased 6% to $0.88 per share in 2007, marking our 42nd consecutive year of dividend growth.”

Net interest income for the fourth quarter of 2007 was $13.9 million, up 6% from $13.2 million for the third quarter. During the same period, net interest margin improved 14 basis points to 3.40%. Compared to the fourth quarter of 2006, net interest income increased 3% and net interest margin expanded 9 basis points in the fourth quarter of 2007. These improvements were the result of management’s efforts to reduce Peoples’ funding costs by reducing certain deposit rates and taking advantage of lower cost funding available in the market place in response to the Federal Reserve’s actions to decrease short-term interest rates and improved yield in two separate pools of loans acquired in acquisitions during 2002 and 2003. For 2007, net interest income totaled $53.9 million compared to $53.2 million in 2006, while net interest margin expanded slightly to 3.32% from 3.29%.

“While the lower interest rate environment helped us reduce funding costs in the fourth quarter, asset yields have also declined from the repricing of prime-based loans and new loans being originated at lower rates,” said Carol A. Schneeberger, Chief Financial Officer and Treasurer. “However, we successfully grew earning asset levels during the quarter, which offset much of the impact of the lower loan yields.”

In the fourth quarter of 2007, total non-interest income was $7.6 million compared to $7.4 million a year ago. In 2007, non-interest income totaled $31.4 million, up from $30.4 million in 2006. The majority of these increases resulted from higher trust and investment income, which increased 16% for the fourth quarter and 17% for the year. Since year-end 2006, Peoples has experienced a 10% gain in the dollar value of assets under management, attributable to the addition of seasoned sales personnel, coupled with an increase in cross sales from retail banking operations. Another contributing factor to non-interest income growth was increased e-banking revenues, which were up 16% and 14% compared to the fourth quarter and year ended December 31, 2006, respectively, reflecting steady volume increases in customer debit card activity.

“Non-interest income growth occurred in 2007 as a result of our efforts in recent years to diversify revenues,” said Schneeberger. “Among the successes was strong production from our insurance agency that allowed total insurance commission income to remain stable, despite lower pricing margins in the insurance industry and annual performance based commissions. We expect our renewed commitment to customer-focused delivery of financial services will continue to increase cross-sale opportunities, which in turn enhances the customer experience and contributes to additional non-interest revenues.”

Total non-interest expense decreased 4% in the fourth quarter of 2007, totaling $12.4 million versus $12.9 million, largely attributable to the reduction in franchise tax expense, tempered by increases in sales-based compensation and bankcard costs, which correspond to the higher insurance and investment income and e-banking revenue, and higher software licensing and support costs.   In 2007, non-interest expense was essentially flat totaling $51.5 million, as higher salaries and benefit costs were offset by reductions in other operating expenses. Consequently, Peoples’ efficiency ratio improved to 57.1% in 2007, versus 57.5% in 2006.

In 2007, Peoples’ effective tax rate was 23.3%, down from 25.8% for the first nine months of 2007 and 26.7% for 2006. The reduction in the effective tax rate was attributable to utilization of additional tax credits in 2007, coupled with a reduction in pre-tax income without a corresponding decline in tax-exempt income. In 2008, management expects a modest increase in Peoples’ effective tax rate from a lower utilization of tax credits.

Gross portfolio loan balances were $1.12 billion at December 31, 2007, up $14.3 million since the prior quarter-end from commercial mortgage loan growth. However, significant commercial and commercial mortgage loan payoffs throughout most of the year resulted in portfolio loan balances falling $11.5 million since year-end 2006. Peoples’ serviced loan portfolio totaled $176.7 million, up 9% since year-end 2006.

“We are pleased to report loan growth in the fourth quarter,” added Schneeberger. “Our continued focus on loan quality, coupled with the possibility of additional payoffs, is expected to make loan growth in the near term difficult.”

In the fourth quarter of 2007, Peoples’ provision for loan losses was $1.5 million versus $1.0 million in the third quarter and $1.9 million in the fourth quarter of 2006. For the year, the provision for loan losses totaled $4.0 million in 2007, up from $3.6 million in 2006.   The provision for loan losses is based on management’s quarterly evaluation of the loan portfolio and is directionally consistent with changes in Peoples’ overall loan quality. At December 31, 2007, non-performing loans totaled $9.4 million, or 0.83% of total loans, compared to $6.2 million, or 0.56%, at September 30, 2007 and $10.0 million, or 0.88%, at year-end 2006. The allowance for loan losses was $15.7 million, or 168.0% of nonperforming loans, at year-end 2007, versus $14.6 million, or 237.3%, at September 30, 2007, and $14.5 million, or 145.0%, at December 31, 2006. Nonaccrual loans increased $3.0 million from September 30, 2007 but are relatively unchanged from December 31, 2006.

In the fourth quarter of 2007, net loan charge-offs were $446,000, down from $1.0 million last quarter, due mostly to a reduction in commercial loan charge-offs. Compared to the prior year, fourth quarter net loan charge-offs decreased substantially from $3.5 million, which was attributable to Peoples charging-off $2.9 million of impaired loans related to a single commercial loan relationship a year ago. For the year, net loan charge-offs totaled $2.8 million in 2007 versus $3.8 million in 2006.

“We believe Peoples sustained overall loan quality in 2007,” stated Schneeberger. “Many of the losses incurred in recent periods were due to credit declines in a limited number of loan relationships.. Additionally, total loan delinquencies have been at reasonable levels although we have seen a recent rise in both the dollar amount and number of loans 30 days or greater past due. We are confident that our loan review process will continue to identify problem loans in a timely manner.”

Retail deposit balances, which exclude brokered deposits, grew $22.4 million since December 31, 2006 with interest-bearing retail balances rising $18.3 million in 2007, due to money market and interest-bearing demand balances increasing 14% and 13%, respectively. Non-interest-bearing deposits also grew $4.1 million in 2007, due to higher commercial deposit balances.

In 2007, Peoples repurchased 463,600 common shares at an average price of $26.21, under previously announced stock repurchase plans. This compares to 37,800 common shares repurchased in 2006, at an average price of $28.35.

“In 2007, operating results improved due to core deposit growth, net interest margin improvement, revenue growth through customer service and controlled expense growth,” summarized Bradley. “Given the uncertainty that exists in the financial markets and the economy as a whole, which can impact loan quality in 2008, we will continue to focus on earnings quality and conservative growth.”

Peoples Bancorp Inc. is a diversified financial products and services company with $1.9 billion in assets, 50 locations and 37 ATMs in Ohio, West Virginia and Kentucky. Peoples makes available a complete line of banking, investment, insurance, and trust solutions through its financial service units – Peoples Bank, National Association; Peoples Financial Advisors (a division of Peoples Bank) and Peoples Insurance Agency, Inc. Peoples’ common shares are traded on the NASDAQ Global Select Market under the symbol “PEBO”, and Peoples is a member of the Russell 3000 index of US publicly traded companies. Learn more about Peoples at www.peoplesbancorp.com.

Conference Call to Discuss Earnings:
Peoples will conduct a facilitated conference call to discuss fourth quarter and 2007 results of operations today at 11:00 a.m. Eastern Time, with members of Peoples’ executive management participating. Analysts, media and individual investors are invited to participate in the conference call by calling (800) 860-2442. A simultaneous Webcast of the conference call audio will be available online via the “Investor Relations” section of Peoples’ website, www.peoplesbancorp.com. Participants are encouraged to call or sign in at least 15 minutes prior to the scheduled conference call time to ensure participation and, if required, download and install the necessary software. A replay of the call will be available on Peoples’ website in the “Investor Relations” section for one year.

Safe Harbor Statement:
This news release may contain certain forward-looking statements with respect to Peoples’ financial condition, results of operations, plans, objectives, future performance and business. Except for the historical and present factual information contained in this news release, the matters discussed in this news release, and other statements identified by words such as “feel,” “expect,” “believe,” “plan,” “will,” “would,” “should,” “could” and similar expressions are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Rule 175 promulgated thereunder, and Section 21E of the Securities Exchange Act of 1934, as amended, and Rule 3b-6 promulgated thereunder. These forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially. Factors that might cause such a difference include, but are not limited to: (1) deterioration in the loan portfolio could be worse than expected due to a number of factors, such as the underlying value of the collateral could prove less valuable than otherwise assumed and assumed cash flows may be worse than expected, which may adversely impact the provision for loan losses (2) competitive pressures among financial institutions or from non-financial institutions, which may increase significantly; (3) changes in the interest rate environment, which may adversely impact interest margins; (4) prepayment speeds, loan originations and sale volumes, charge-offs and loan loss provisions, which may be less favorable than expected; (5) general economic conditions, either national or in the states in which Peoples and its subsidiaries do business, which may be less favorable than expected; (6) political developments, wars or other hostilities, which may disrupt or increase volatility in securities markets or other economic conditions; (7) legislative or regulatory changes or actions, which may adversely affect the business of Peoples and its subsidiaries; (8) adverse changes in the conditions and trends in the financial markets, which may adversely affect the fair value of securities within Peoples’ investment portfolio; (9) a delayed or incomplete resolution of regulatory issues that could arise; (10) ability to receive dividends from subsidiaries; (11) the impact of reputational risk created by these developments on such matters as business generation and retention, funding and liquidity; (12) the costs and effects of regulatory and legal developments, including the outcome of regulatory or other governmental inquiries and legal proceedings and results of regulatory examinations; and (13) other risk factors relating to the banking industry or Peoples as detailed from time to time in Peoples’ reports filed with the Securities and Exchange Commission (“SEC”), including those risk factors included in the disclosures under the heading “ITEM 1A. RISK FACTORS” of Peoples’ Annual Report on Form 10-K for the fiscal year ended December 31, 2006 and under the heading “ITEM 1A: RISK FACTORS” of Part II of Peoples’ Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2007. Peoples undertakes no obligation to update these forward-looking statements to reflect events or circumstances after the date of this news release or to reflect the occurrence of unanticipated events, except as required by applicable legal requirements. Copies of documents filed with the SEC are available free of charge at the SEC’s website at http://www.sec.gov and/or from Peoples’ website.

Please click here to view the complete earnings release.

PEOPLES BANCORP INC. NOMINATES
FOUR BOARD MEMBERS FOR RE-ELCTION
____________________________________________

Annual meeting of shareholders to be held April 10, 2008

January 11, 2008

Contact: Mark F. Bradley
President and Chief Executive Officer
(740) 373-3155

MARIETTA, Ohio – At its regular meeting yesterday, the Board of Directors of Peoples Bancorp Inc. (“Peoples”) (NASDAQ: PEBO) nominated directors Mark F. Bradley, Frank L. Christy, Theodore P. Sauber, and Joseph H. Wesel for re-election by Peoples shareholders at the Annual Meeting to be held on April 10, 2008 in Marietta, Ohio. Each nominee stands for re-election as a director of Peoples for a three-year term expiring in 2011.

Peoples also announced it will release 2007 earnings before the market opens on January 24, 2008. Peoples’ executive management will conduct a facilitated conference call to discuss fourth quarter and 2007 results of operations at 11:00 a.m. Eastern Standard Time on the same date. Analysts, media and individual investors are invited to participate in the conference call by calling 800-860-2442. A simultaneous webcast of the conference call audio can be accessed via www.peoplesbancorp.com, and a replay will also be available.

Peoples Bancorp Inc., a diversified financial products and services company with $1.9 billion in assets, makes available a complete line of banking, investment, insurance, and trust solutions through 50 locations and 38 ATMs in Ohio, West Virginia, and Kentucky. Peoples Bancorp’s financial service units include Peoples Bank, Peoples Financial Advisors (a division of Peoples Bank) and Peoples Insurance Agency, Inc., which includes the Putnam and Barengo divisions. Peoples Bancorp’s common shares are traded on the NASDAQ Global Select Market under the symbol “PEBO” and Peoples Bancorp is a member of the Russell 3000 index of US publicly traded companies. Learn more about Peoples at www.peoplesbancorp.com.

END OF RELEASE