July 5, 2007, Wilmington, NC -- Cooperative Bankshares, Inc. (NASDAQ: "COOP") announced the completion of the acquisition of Bank of Jefferson.

Frederick Willetts, III, Cooperative's Chairman, President and Chief Executive Officer, stated: "On July 2, 2007, we completed the acquisition of Bank of Jefferson located in Chesterfield County, South Carolina. We look forward to welcoming Bank of Jefferson's customers to the Cooperative family and offering them expanded banking services. Expansion into South Carolina has long been a strategic goal of ours. This acquisition gives us the opportunity to move into the Grand Strand area also."

Bank of Jefferson became a wholly owned subsidiary of Cooperative Bankshares, Inc.

Cooperative Bankshares, Inc. is the parent company of Cooperative Bank in North Carolina and Bank of Jefferson in Chesterfield County, South Carolina. Chartered in 1898, Cooperative Bank provides a full range of financial services through 23 offices in Eastern North Carolina. Chartered in 1946, Bank of Jefferson operates one office in Jefferson, South Carolina. Cooperative Bank's subsidiary, Lumina Mortgage, Inc., is a mortgage banking firm, originating and selling residential mortgages through three offices in North Carolina.

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