Police in Paso Robles, a town that lies about 57 kilometers (36 miles) east of the quake's epicentre near San Simeon, said that earlier reports that three people had been killed and others trapped were inaccurate.

"As of now we have reports of two deaths attributed to the quake and have no reason to believe that anyone is still trapped in the building that collapsed," said California Highway Patrol spokesman, Officer Scott Lee.

He said earlier reports by authorities that three people had died appeared to be erroneous.

The historic two-storey building, which housed a jeweller's shop and a bakery, was in the centre of the old town and bore one of its principal landmarks -- an old clock tower that also crumbled in teh temblor.

"The whole town shook and the building came down, it was horrible," said Brandy Wilson, who works at the Best Western hotel in the town.

Paso Robles appeared to suffer the brunt of the damage caused by the biggest earthquake to hit the area in years.

Elsewhere in the region, only minor damage and injuries were reported in the temblor and its wave of aftershocks.

Other damage was done to buildings in scenic Paso Robles police said, and several cars were crushed by the rubble of the collapsed building.

Masonry and wood could be seen in television pictures scattered over a wide area, while windows of several concrete and brick structures in the town were shattered.

Earthquake experts said the town may have been worse hit because its boats many old brick buildings which are less flexible than wood, the main construction material used in the towns immediately surrounding the quake's epicentre.

TERRA.WIRE