Wilmington, N.C., March 22, 2005--Cooperative Bankshares, Inc. (NASDAQ:"COOP"), announced that on March 22, 2005, the Board of Directors declared the 2005 first quarter dividend of $0.05 per share, a 7.1% increase over the $0.0467 paid in the fourth quarter 2004. The fourth quarter per share data has been adjusted to reflect the 3-for-2 stock split paid on February 24, 2005. The first quarter dividend is payable on April 15, 2005, to stockholders of record April 1, 2005.