FOR IMMEDIATE RELEASE

Contact:  Dawn P. Crusinberry
           Vice President and CFO
           (804) 369-3036


                          PINNACLE BANKSHARES ANNOUNCES
                                   STOCK SPLIT

ALTAVISTA,  VA (MAY 12, 2000) Pinnacle  Bankshares  Corporation  announced today
that its Board of Directors  has declared a  two-for-one  split of the Company's
common stock.  The additional  shares to be issued in connection  with the split
will be distributed on or about June 16, 2000, to  shareholders of record on May
19, 2000.

Pinnacle Bankshares, headquartered in Altavista, Virginia, is a one-bank holding
company  for The  First  National  Bank of  Altavista,  a  ninety-two  year  old
community  bank with full service  offices in Altavista and at 14580 Wards Road,
Lynchburg, Virginia. First National Mortgage, a division of First National Bank,
has a mortgage loan production office in Forest,  Virginia.  Pinnacle Bankshares
had total assets of $155,399,000 as of March 31, 2000.

Robert H.  Gilliam,  Jr.,  President  and Chief  Executive  Officer of  Pinnacle
Bankshares  Corporation,  said "The split will create new shares  which  reflect
growth of the holding  company since it was formed in May, 1997. The two-for-one
split should also enhance public interest in Pinnacle's stock, while at the same
time providing availability of more shares for purchase and sale."

At  present  there  are  720,670  shares of  Pinnacle  Bankshares  common  stock
outstanding.  After the split, there will be 1,441,340  outstanding  shares. The
current  par value of $5.00 per share will become  $2.50 per share  commensurate
with the split.

The most  recent  quarterly  cash  dividend of $.19 per share was paid April 21,
2000. The next scheduled  quarterly cash dividend  declaration  date is July 11,
2000.

Pinnacle  Bankshares  Corporation  is an  over-the-counter  bulletin board stock
whose trading symbol is PPBN.