Carolina Bank Keeps Growing in Greensboro, Acquires Former Bostic Building.

GREENSBORO, N.C. -- Carolina Bank (NASDAQ: CLBH) has acquired the former Bostic Construction Building on Guilford College Road. The bank plans to transfer administrative employees from the bank's Lawndale Avenue headquarters to the new building.

Commenting on the new facility, CEO Robert T. Braswell said, "We have experienced really good growth in our Greensboro and Asheboro offices, particularly in our commercial banking portfolio. We'll allocate the former administrative space at our headquarters building to increased lending activity."

"The move to the Bostic building will give us time to formulate a strategic facility plan which will consider not only our future space and technology requirements, but also ways to continue providing for the needs of our customers."

The bank operates three offices in Greensboro and one in Asheboro. In August 2005, the bank opened a loan production office in Burlington, the county seat of Alamance County, with plans to expand into a full service office there in 2006. A full service office for the High Point area is also slated for 2006.

Carolina Bank is a wholly owned subsidiary of Carolina Bank Holdings (NASDAQ: CLBH). On June 30, 2005, the company reported a 32% increase in total assets to $324.5 million; total loans, net of reserves, increased 19 % to $229.0 million; and total deposits increased 34% to $270.2 million. All balances are for the period ending June 30, 2005, compared to June 30, 2004.

Forward looking statements: From time to time we make written and verbal forward-looking statements about our objectives and strategies, operations and targeted financial results. These may be included in our Annual Reports, regulatory filings, reports to shareholders, press releases, corporate presentations and other communications. These forward-looking statements are inherently subject to risks and uncertainties beyond the Bank's control, including, but not limited to, fluctuations in interest rates and currency values, changes in economic and political conditions, legislative or regulatory developments, technological developments and competition. These and other factors may cause the Bank's actual performance to differ materially from that contemplated by forward-looking statements and the reader is therefore cautioned not to place undue reliance on these statements. We do not undertake to update any forward-looking statement, whether written or verbal, that may be made from time to time by us or on our behalf.