EXHIBIT 99.1



Contact:     Charles H. Majors - (434) 773-2219
             President & CEO

Distribute:  PR Newswire, Virginia State/Local News

Dated:       May 18, 2004




         American National Bankshares Announces Dividend Increase


     FOR IMMEDIATE RELEASE (Danville, Virginia) - The Board of Directors of
American National Bankshares Inc. (NASDAQ:  AMNB), parent company of American
National Bank and Trust Company, declared an increase in the per share dividend.
A quarterly cash dividend of $0.20 per share of common stock will be payable on
June 25, 2004,  to shareholders of record on June 11, 2004.  This represents a
5.3% increase over last quarter's dividend of $0.19 per share.

     Charles H. Majors, President and Chief Executive Officer said, "This
dividend increase marks the 28th consecutive year that we have increased regular
dividends to our shareholders.  We are pleased that our operating results permit
us to share more with our shareholders while retaining a sufficient portion of
our earnings to maintain our strong equity base with adequate capital for
growth."

     American National Bankshares Inc. is the holding company of American
National Bank and Trust Company,  a community bank with fourteen offices in
Danville, Chatham, Collinsville, Gretna, Martinsville, Henry County and South
Boston, Virginia and Yanceyville, North Carolina.  Services are also provided
through twenty ATMs, "AmeriLink" internet banking, and 24-hour "Access American"
phone banking.  Two bank subsidiaries, ANB Mortgage Corp. and ANB Investor
Services, offer mortgage loans and brokerage services.  The shares of American
National Bankshares Inc. are traded on the NASDAQ National Market under the
symbol "AMNB".  Additional information about American National is available
on its website at www.amnb.com.