December 22, 2003

COOPERATIVE BANKSHARES, INC. DECLARES FOURTH QUARTER DIVIDEND

 Wilmington, NC—Cooperative Bankshares, Inc. announced that on December 17, 2003, the Board of Directors declared a fourth quarter dividend of $0.05 per share, payable on the 17^th day of January, 2004, to stockholders of record as of January 2, 2004.

Cooperative Bankshares, Inc. is the parent company of Cooperative Bank.  Chartered in 1898, Cooperative provides a full range of financial services through 21 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.