Community Bankshares Inc. -SC- Announces Third Quarter 2001 Cash Dividend.

Business Editors

ORANGEBURG, S.C.--(BUSINESS WIRE)--Aug. 13, 2001

Cash dividends year to date up 31% over 2000

Community Bankshares Inc., (AMEX:SCB), announced that its Board of Directors has declared a quarterly cash dividend of seven cents ($.07) per share, payable September 28, 2001 to shareholders of record September 14, 2001.

For the first three-quarters of 2001 CBI will pay a total of twenty-one cents ($.21) per share. This compares to a total of sixteen cents ($.16) per share for the same period in 2000, a five cent or 31% increase.

Chairman and CEO E. J. Ayers stated, "We determine our dividend payment in a safe and sound manner based on a review of earnings, capital and other factors. We currently expect that cash dividends in 2001 will be at substantially greater than in 2000."

CBI paid its first cash dividend ten years ago. In 1991 the company 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 $1,831,000 ($.57 per share) for the six months ended June 30, 2001 compared to $1,477,000 ($.46 per share) for the same period in 2000, an increase of $354,000 or 24%.

At June 30, 2001 consolidated assets for CBI totaled $285 million compared to $253 million at June 30, 2000, an increase of $32 million or 12.6%.

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.