X0202 4 2005-12-27 0 0001079385 CORNERSTONE BANCORP INC cbn 0001247880 MILLER RONALD C 40 DAVENPORT FARM LN. E. STAMFORD CT 06903 1 0 0 0 Common stock 3117 D Common Stock 3509.071 I By wife's IRA FBO himself. Common Stock 19542.441 I By IRA FBO himself Common Stock 10020.9 I Joint with wife Director Stock option (right to buy) 8.99 2005-12-27 2005-12-27 4 D 0 3025 27.7 D 1997-02-21 2007-02-21 Common stock 3025 0 D Director Stock Option (right to buy) 12.4 2005-12-27 2005-12-27 4 D 0 303 24.29 D 1997-05-21 2007-05-21 Common Stock 303 0 D Director stock option (right to buy) 17.25 2005-12-27 2005-12-27 4 D 0 303 19.44 D 1998-05-20 2008-05-20 Common Stock 303 0 D Director stock option (right to buy) 13.64 2005-12-27 2005-12-27 4 D 0 275 23.05 D 1999-05-19 2009-05-19 Common Stock 275 0 D Director Stock option (right to buy) 10.91 2005-12-27 2005-12-27 4 D 0 275 25.78 D 2000-05-17 2010-05-17 common stock 275 0 D Director stock option (right to buy) 12.82 2005-12-27 2005-12-27 4 D 0 275 23.87 D 2001-05-16 2011-05-16 Common Stock 275 0 D Director stock option (right to buy) 17.82 2005-12-27 2005-12-27 4 D 0 275 18.87 D 2002-05-15 2012-05-15 Common Stock 275 0 D Director stock option (right to buy) 18 2005-12-27 2005-12-27 4 D 0 250 18.69 D 2003-05-21 2013-05-21 Common Stock 250 0 D Director stock option (right to buy) 25.46 2005-12-27 2005-12-27 4 D 0 250 11.23 D 2004-05-26 2014-05-26 Common Stock 250 0 D The reporting person received 20.341 shares of common stock as a result of participation in the Bancorp's plan for the reinvestment of dividends. Approximately 0.844 fractional shares of common stock were converted to cash as a result of the termination of the Cornerstone Bancorp, Inc. dividend reinvestment plan in May 2005. The reporting person received 22.932 shares of common stock as a result of participation in the Cornerstone Bancorp, Inc. plan for the reinvestment of dividends. Teh reporting person received 127.711 shares of common stock as a result of participation in the Cornerstone Bancorp plan for the reinvestment of dividends. In accordance with the provisions of the Issuer's 1996 Stock Plan, in anticipation of the Issuer's merger with New Alliance Bancshares, Inc. on January 2, 2006, the Compensation Committee of the Board of Directors of the Issuer on December 27, 2005, approved the purchase of all outstanding options by the Issuer at a price per share equal to the difference between the option exercise price and $36.69, the price of the Issuer's common stock at the close of business on December 23, 2005, the prior business day. Leigh A, Hardisty as power of attorney 2005-12-29