January 28, 2003

COOPERATIVE BANKSHARES REPORTS ANNUAL EARNINGS INCREASE OF 71 PERCENT.

                 Wilmington, NC—Cooperative Bankshares, Inc. (NASDAQ: “COOP”) reported net income for the twelve months ended December 31, 2002, of $4,944,497 or $1.73 per diluted share, a 71.2% increase over the same period last year.  Net income for the twelve months ended December 31, 2001 was $2,888,943 or $1.02 per diluted share.

                 Net income for the quarter ended December 31, 2002, was $1,304,954 or $.46 per diluted share, an increase of $498,732 or 61.9% over the same quarter last year.  Net income for the quarter ended December 31, 2001 was $806,222 or $0.28 per diluted share. 

 Total assets at December 31, 2002, were $504.2 million; stockholders’ equity was $38.4 million and represented 7.63% of assets.

 Cooperative Bankshares, Inc. is the parent company of Cooperative Bank.  Chartered in 1898, Cooperative Bank provides a full range of financial services through 17 financial centers in Eastern North Carolina.  The Bank’s subsidiary, Lumina Mortgage, Inc., is a mortgage banking firm, originating and selling residential mortgage loans through offices in Wilmington, North Carolina; North Myrtle Beach, South Carolina; and Virginia Beach, Virginia.