June 20, 2002

COOPERATIVE BANKSHARES, INC. DECLARES SECOND QUARTER DIVIDEND

       Wilmington, NC--Cooperative Bankshares, Inc. (NASDAQ: “COOP”) announced today that the Board of Directors declared a second quarter dividend of $0.05 per share, payable on the 16^th day of July, 2002 to stockholders of record as of July 1, 2002.

       Cooperative Bankshares, Inc. (NASDAQ: “COOP”) is the parent company of Cooperative Bank.  Chartered in 1898, Cooperative provides a full range of financial services through 17 financial centers in Eastern North Carolina.