December 19, 2002

COOPERATIVE BANKSHARES, INC. DECLARES FOURTH QUARTER DIVIDEND

            Wilmington, NC--Cooperative Bankshares, Inc. (NASDAQ: “COOP”) announced that on December 18, 2002, the Board of Directors declared a fourth quarter dividend of $0.05 per share, payable on the 17^th day of January, 2003 to stockholders of record as of January 2, 2003.

            Cooperative Bankshares, Inc. 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.  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

Frederick Willetts, III, Chairman/ CEO
Todd Sammons, CPA, Senior Vice President/ CFO
Linda B. Garland, Vice President/ Secretary