Exhibit (99)

             High Country Bank approves formation of holding company


BOONE,  N.C. -- Boone based High Country Bank (HGCT - Over the Counter  Bulletin
Board) has announced  that the bank has completed the process of converting to a
holding company form.

High Country Financial  Corporation,  quoted on the OTCBB under the symbol HGCF,
has become the parent of High Country Bank.

High Country Financial Corporation is a North Carolina, one-bank holding company
headquartered in Boone, North Carolina.

High Country Bank's shareholders approved the holding company  reorganization at
the bank's annual meeting held May 14. Regulatory  approval was received on June
25. The holding company conversion was completed successfully on July 1.

As a result of the conversion,  each share of High Country Bank common stock was
automatically  converted  into one share of High Country  Financial  Corporation
stock.  High Country  Financial  Corporation is now the sole shareholder of High
Country Bank.

High Country Financial  Corporation's board of directors is composed of the same
persons who are directors of High Country Bank. C. Kenneth  Wilcox,  chairman of
the board of the bank, is also chairman of High Country Financial  Corporation's
board of directors.  The bank's President and chief executive  officer,  John M.
Brubaker,  is also  president  and  chief  executive  officer  of  High  Country
Financial Corporation.

The bank began  operations  on Nov. 30,  1998.  As of June 30, 2002 it has total
assets of $154 million. The bank's headquarters are located in Boone.

The bank has two  additional  full-service  offices in Boone and two  additional
offices in West Jefferson. The bank offers a full range of banking and financial
services to individuals and small to medium-sized businesses.


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