FIRST BANCORPORATION, INC.
      1121 BOUNDARY STREET BEAUFORT, SOUTH CAROLINA 29901 (803) 521-5600
 
                                 MAY 22, 1998
 
Dear Shareholder and/or Prospective Investor:
 
  FirstBancorporation, Inc. ("Company"), the holding company for FirstBank,
N.A., Beaufort, South Carolina ("Bank"), is offering between 180,000 and
220,000 shares of common stock for sale in an additional offering to eligible
stockholders of the Company and eligible members of the general public. The
net offering proceeds will be contributed to the initial capitalization of a
newly chartered national bank ("New Bank").
 
  The New Bank, to be called "FirstBank of the Midlands, N.A.," will be
headquartered in Columbia, South Carolina and will be a wholly-owned
subsidiary of the Company. The opening of the New Bank is subject to the
receipt of all applicable regulatory approvals and the sale of at least
180,000 shares of common stock in the offering.
 
  Enclosed is a Prospectus, a Subscription Order Form, and a return envelope
for returning a completed Subscription Order Form if you decide to subscribe
for shares. The Prospectus contains detailed information regarding the
Company, the Bank and the New Bank, including consolidated financial
statements of the Company. PLEASE READ THE PROSPECTUS CAREFULLY BEFORE MAKING
AN INVESTMENT DECISION.
 
  The offering will terminate at 12 Noon, Eastern Time, on June 22, 1998,
unless terminated earlier by the Company or extended by the Company for
additional periods not beyond August 7, 1998.
 
  If you have any questions, please call the Company at (803) 521-5600.
 
  Sincerely,                              Sincerely,
  /s/  Colden R. Battey, Jr.              /s/ James A. Shuford, III
  --------------------------              ----------------------------------- 
  Colden R. Battey, Jr.                   James A. Shuford, III President and
  Chairman of the Board                   Chief Executive Officer
 
THIS LETTER IS NEITHER AN OFFER TO SELL NOR A SOLICITATION OF AN OFFER TO BUY
THE SHARES OF COMMON STOCK.SUCH OFFER AND SOLICITATION IS MADE ONLY BY THE
PROSPECTUS IN SUCH JURISDICTIONS WHERE IT IS LAWFUL TO DO SO. THE SHARES OF
COMMON STOCK ARE NOT DEPOSITS OR ACCOUNTS AND ARE NOT INSURED BY THE FEDERAL
DEPOSIT INSURANCE CORPORATION, THE OFFICE OF THE COMPTROLLER OF THE CURRENCY
OR ANY OTHER GOVERNMENT AGENCY, FEDERAL, STATE OR LOCAL.