COOPERATIVE BANKSHARES REPORTS THIRD QUARTER EARNINGS INCREASE OF 51 PERCENT.

Wilmington, NC—Cooperative Bankshares, Inc. (NASDAQ: “COOP”) reported net income for the quarter ended September 30, 2002, of $1,219,879 or $0.43 per diluted share, a 51% increase over the same quarter last year.  Net income for the quarter ended September 30, 2001, was $805,465 or $0.28 per diluted share.

Net income for the nine months ended September 30, 2002, was $3,639,543 or $1.27 per diluted share, a 75% increase over the same period last year.  Net income for the nine months ended September 30, 2001, was $2,082,721 or $0.74 per diluted share.

Total assets at September 30, 2002, were $498 million; stockholders’ equity was $37.1 million and represented 7.44% of assets.

            Cooperative Bankshares, Inc. (NASDAQ: “COOP”) is the parent company of Cooperative Bank and Lumina Mortgage, Inc.  Chartered in 1898, Cooperative provides a full range of financial services through 17 financial centers in Eastern North Carolina.  Lumina Mortgage, Inc. is a mortgage brokerage firm, originating and selling residential mortgage loans through offices in Wilmington, North Carolina, North Myrtle Beach, South Carolina and Virginia Beach, Virginia.