August 5, 2005

Wilmington, NC—August 4, 2005. Cooperative Bankshares, Inc. (NASDAQ; "COOP") was recognized in the July 2005 US Banker with a ranking of 83rd in the list of Top 200 Community Banks in the country. In 2004, the ranking was 107th. The list is based on a three-year average return on equity.

Cooperative Bankshares, Inc. is the parent company of Cooperative Bank. Chartered in 1898, Cooperative Bank provides a full range of financial services through 20 offices in Eastern North Carolina. Cooperative Bank’s subsidiary, Lumina Mortgage, Inc., is a mortgage banking firm, originating and selling residential mortgage loans through 5 offices along the coast from North Myrtle Beach, South Carolina, to Virginia Beach, Virginia.

Frederick Willetts, III, President