UWHARRIE CAPITAL CORP NEWS RELEASE TO: The Anson Record David Deese (For Publication Wed. 8-4-99) FROM: Tamara M. Singletary Uwharrie Capital Corp (704) 982-4415 DATE: Tuesday, August 3, 1999 RE: Uwharrie Capital Corp and Anson Bancorp, Inc. Form Partnership - -------------------------------------------------------------------------------- Albemarle, NC - Uwharrie Capital Corp, bank holding company of Bank of Stanly, and Anson Bancorp, Inc., parent company of Anson Savings Bank, Inc., of Wadesboro, NC, jointly announced today that they have signed a definitive agreement providing for Anson Savings Bank to become a wholly-owned subsidiary of Uwharrie Capital Corp. This announcement was made by Cindy Beane, Chairwoman of Uwharrie Capital Corp and Preston Burns, Chairman of Anson Bancorp, Inc. Roger Dick, President and Chief Executive Officer of Uwharrie Capital Corp commented, "Partnering with Anson Savings Banks allows us to expand within the nine-county Uwharrie Lakes Region, consistent with our vision. After completing a $4.7 million common stock offering March 31, 1999, our Board of Directors feels this is an opportunity to enhance the economic well-being of our region by reinvesting capital into our communities to help start new businesses, build new homes and provide new jobs. This partnership with our neighbors in Anson County in a continuation of our company's mission to help build a sustainable, economic future for the Uwharrie Lakes Region." "This 110-year old institution, founded by the people of Anson County in 1889, has been built upon strong community values, pride and service to its citizens. We believe our missions and our values are compatible. Building our company with partners like Anson Savings Bank only strengthens our commitment to our mission while creating value for our shareholders," added Cindy Beane, Uwharrie Capital Corp Chairwoman. Anson Bancorp Chairman Preston Burns commented, "Our joining with Uwharrie Capital Corp allows us to offer both competitive banking services and investment services which will help our community. Continuing hometown, professional service to our friends in Anson County was most important in our decision to enter into this transaction. We believe this transaction is in the best interest of our community, our customers and our shareholders." Anson Bancorp and Anson Savings Bank, on a consolidated basis, have total assets of approximately $25 million, loans of approximately $12.1 million, deposits of approximately $15.2 million and $9.5 million in shareholders' equity at June 30, 1999, and operate one office in Wadesboro, NC. Under the terms of the agreement, Uwharrie Capital Corp will acquire all of the 585,124 issued and outstanding shares of the common stock of Anson Bancorp, Inc. for cash at a price of $17.30 per share. The transaction is expected to be completed by year-end 1999 subject to approval by Anson Bancorp's shareholders and Federal and State Banking regulators. Uwharrie Capital Corp is a $168 million bank holding company headquartered in Albemarle, NC. It operates Bank of Stanly, with five offices in Stanly County, and Strategic Alliance, its investment management company. It also owns 50% of a technology and data processing services company, Corporate Data Services, Inc., which provides services to Bank of Stanly and other community banks.