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May 2, 2006

Dear Shareholder:

Were recent salary changes at The Conway  National Bank

     o    a reward for voting to replace the Chairman and President, or
     o    long overdue adjustments to CNB's entire salary schedule?

If this is a key issue for you in making your  decision  about whether or not to
support the Blue Ribbon Slate,  we hope the enclosed  affidavit  will help.  The
affidavit is a sworn statement from Bruce Johanson,  a principal in a consulting
firm engaged by Willis and Jennings Duncan to conduct  compensation  surveys for
CNB.

Please review the  affidavit  carefully  and note that Mr.  Johanson  states the
following:

     o    Several years ago, the surveys began  indicating  that CNB's  salaries
          were falling behind.
     o    Jennings  Duncan was informed that employee  retention would become an
          issue for the bank.
     o    Significant  pay gaps  were  found for  tellers,  loan  officers,  and
          lending supervisors.
     o    Executive pay was skewed by Jennings  Duncan's decision to `split' his
          salary, $183,360 for himself and $77,640 for his father.
     o    The  Duncans'  total pay of $261,000 is $31,000  more than the current
          President's.
     o    The base  salary  of the  current  President  is `well  within  market
          range.'

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The only thing secret about any of this was that Mr.  Johanson's full report was
not presented to the Board of Directors or the shareholders.
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Our  management  team  stands  solidly  behind our  decision to  compensate  our
employees  fairly and within market range. We truly believe our workforce is our
most  important  asset and our  long-range  success  depends  on our  ability to
attract and retain talented people at all levels of the bank.

After reading Mr. Johanson's affidavit, we hope you will support the Blue Ribbon
Slate by returning the BLUE proxy form. We want  financial  expertise,  personal
integrity,  and commitment to community  values in every person  associated with
our bank - from  Directors  to front line  tellers.  By electing our Blue Ribbon
Slate, you can help us set the standard for excellence that will help CNB become
one of the best community banks in South Carolina.

Phil Hucks, President,  stands ready to answer any questions you may have and is
available at (843) 488-8444 or phil.hucks@conwaynationalbank.com.

Sincerely,



H. Buck Cutts, Chairman of the Board of Directors
CNB Corporation