FOR IMMEDIATE RELEASE
                              ---------------------

                                                        Contact: Dwight V. Neese
                                                                       President
                                                            203 West Main Street
                                                            Union, SC 29379-0866
                                                                  (864) 429-1863

                        UNION FINANCIAL BANCSHARES, INC.
               ANNOUNCES PLAN TO CONVERT PROVIDENT COMMUNITY BANK
                            TO NATIONAL BANK CHARTER

UNION, SOUTH CAROLINA - March 7, 2003; Union Financial Bancshares, Inc. (Nasdaq:
UFBS) announced today that it has submitted an application to the Office of the
Comptroller of the Currency to convert the charter of its banking subsidiary,
Provident Community Bank, from a federal savings bank to a national bank. Union
Financial Bancshares, Inc. will subsequently be submitting an application to the
Federal Reserve Board to become a bank holding company. The charter change will
not have any significant financial or regulatory impact or affect Provident
Community Bank's current activities. Subject to receiving the necessary
regulatory approvals, the charter conversion is expected to be completed in mid
2003.

Dwight V. Neese, President and Chief Executive Officer of Provident Community
Bank and Union Financial Bancshares, Inc., commented: "We have had considerable
success as a federal savings bank and have enjoyed an excellent relationship
with the Office of Thrift Supervision as our regulator. We have determined,
however, that converting to a national bank best positions Provident Community
Bank to compete in the 21st century marketplace. Over the last few years we have
been expanding our product offering to include a broader range of consumer and
commercial loan products. We believe the national bank charter will be a better
fit as we transform our balance sheet and product mix to more effectively pursue
a community banking strategy. "

As previously announced on January 29, 2003, the Board of Directors of Union
Financial Bancshares, Inc. approved the repurchase of up to 98,000 shares, or
approximately 5% of the Corporation's outstanding common stock. Repurchases,
which will be conducted through open market purchases or privately negotiated
transactions, will be made from time to time depending on market conditions and
other factors. Repurchased shares will be held in treasury.

About Union Financial Bancshares, Inc.:
- --------------------------------------


At December 31, 2002, Union Financial Bancshares, Inc. had $331.6 million in
total assets and total stockholders' equity of $27.8 million. Union Financial
Bancshares, Inc. owns Provident Community Bank, which operates six banking
locations in the upstate of South Carolina. For additional information, visit
the bank's web site at www.provcombank.com.
                       -------------------