July 24, 2003

 SECOND QUARTER EARNINGS INCREASE OF 26 PERCENT

Cooperative Bankshares, Inc. (NASDAQ: “COOP”) reported net income for the quarter ended June 30, 2003, of $1,423,239 or $0.49 per diluted share, a 25.8% increase over the same quarter last year.  Net income for the quarter ended June 30, 2002, was $1,131,162 or $0.40 per diluted share. 

Net income for the six months ended June 30, 2003, was $2,810,889 or $0.97 per diluted share, a 16.2% increase over the same period last year.  Income for the six months ended June 30, 2002 was $2,419,664 or $0.85 per diluted share.

Total assets at June 30, 2003, were $522.0 million; stockholders’ equity was $41.0 million or $14.40 per share and represented 7.86% of assets.

Cooperative Bank recently opened two new financial centers: Monkey Junction in Wilmington  on May 12, 2003, and Highway 24 financial center in Morehead City opened on July 1, 2003.

Cooperative Bankshares, Inc. is the parent company of Cooperative Bank.  Chartered in 1898, Cooperative provides a full range of financial services through 19 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.

For Additional Information:

SEC Form 8-K has been filed which contains additional information.