COOPERATIVE BANKSHARES, INC. ANNOUNCES SECOND QUARTER DIVIDEND

Wilmington, N.C., June 29, 2005--Cooperative Bankshares, Inc. (NASDAQ:“COOP”), announced that on June 29, 2005 the Board of Directors declared the 2005 second quarter dividend of $0.05 per share.  The dividend is payable on July 15, 2005, to stockholders of record July 1, 2005.  

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

 For Additional Information
Frederick Willetts, III, President/ CEO
Todd L. Sammons, CPA,
Senior Vice President/ CFO
Linda B. Garland, Vice President/ Secretary
910-343-0181