Community Bankshares Inc. --SC-- Announces Second Quarter 2001 Cash Dividend; Cash Dividend of Seven Cents Per Share Declared.

Business Editors

ORANGEBURG, S.C.--(BUSINESS WIRE)--May 24, 2001

Community Bankshares Inc., (AMEX:SCB), announced that its Board of Directors has declared a quarterly cash dividend of seven cents ($.07) per share, payable June 29, 2001 to shareholders of record June 15, 2001.

For the first two quarters of 2001 CBI will have paid a total of fourteen cents ($.14) per share. This compares to a total of ten cents ($.10) per share for the first two quarters of 2000.

Chairman and CEO E.J. Ayers stated, "We determined our dividend in a safe and sound manner based on a review of our earnings, capital and other factors. Based on current information, we expect that cash dividends in 2001 will be at least 27% greater than in 2000."

Ayers continued, "CBI paid its first cash dividend ten years ago. In 1991 we paid seven cents ($.07) per share, that amount increased to twenty-two cents ($.22) cents per share in 2000."

Community Bankshares Inc. has a dividend reinvestment and additional stock purchase plan. Information on the plan may be obtained from Registrar and Transfer Company, the plan administrator, at 800-368-5948.

CBI also recently announced consolidated net income of $901,000 ($.28 per share) for the quarter ended March 31, 2001 compared to $694,000 ($.22 per share) for the same quarter in 2000, an increase of $207,000 or 29.8%.

At March 31, 2001 consolidated assets for CBI totaled $280 million compared to $242 million at March 31, 2000, an increase of $38 million or 15.7%. Gross loans totaled $202 million compared to $171 million the prior year, an increase of $31 million or 18.1%. Deposits totaled $228 million compared to $197 million the prior year, an increase of $31 million or 15.7%.

CBI's common stock is traded on the American Stock Exchange under the ticker symbol SCB. Community Bankshares Inc., based in Orangeburg, South Carolina, is the holding company for Florence National Bank, Sumter National Bank, and Orangeburg National Bank.

This press release contains forward-looking statements. Investors are cautioned that all forward-looking statements involve risks and uncertainties, and several factors could cause actual results to differ materially from those in the forward-looking statements. Forward-looking statements relate to anticipated revenues, gross margins, earnings, and growth of the market for our services and products. The following factors, among others, could cause actual results to differ from those indicated in the forward-looking statements: uncertainties associated with market acceptance of and demand for the company's services and products, impact of competitive products and pricing, dependence on third party suppliers, and uncertainties associated with the development of technology. Investors are directed to the company's 2000 annual report, which is available from the company without charge, for a more complete description of the company's business.