Bank of Oak Ridge Announces Commencement of a Rights and Public Offering of 550,000 Shares.

Business Editors

OAK RIDGE, N.C.--(BUSINESS WIRE)--Dec. 23, 2003

Bank of Oak Ridge, a North Carolina state chartered bank headquartered in Oak Ridge, North Carolina, announced today that it has commenced a rights offering of 200,000 shares of common stock to shareholders of record as of December 19, 2003 and a public offering of 350,000 shares of common stock. Each shareholder as of December 19, 2003 will be entitled to purchase in the rights offering one share for every four shares owned on December 19, 2003. Any shares not subscribed for by shareholders in the rights offering will be offered to the general public as part of the public offering.

McKinnon & Company, Inc. will be the underwriter in the public offering on a best efforts basis. Bank of Oak Ridge has reserved the right to sell up to an additional 82,500 shares in the public offering. The Bank intends to use the proceeds from the offerings to support future growth and expansion of its retail and commercial banking operations.

At September 30, 2003, Bank of Oak Ridge had total assets of $91.3 million, total deposits of $66.5 million, total loans of $59.2 million and stockholders' equity of $7.3 million. Bank of Oak Ridge currently operates two full-service banking offices, located in Oak Ridge and Summerfield, North Carolina.

To receive a copy of the preliminary offering circular for the public offering, contact McKinnon & Company, Inc., 555 East Main Street, Suite 1212, Norfolk, Virginia 23510, [phone].

This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities, in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

This press release and the preliminary offering circular contain "forward-looking statements" that concern future events which are subject to risks and uncertainties. Any such statements are based on certain assumptions and analyses by the Bank and other factors it believes are appropriate in the circumstances. The Bank's actual results, events and developments may differ materially from those contemplated by any forward-looking statement. Consequently, all forward-looking statements made in this press release and in the preliminary offering circular are qualified by cautionary language contained in the preliminary offering circular.