FOR IMMEDIATE RELEASE

DATE: April 8, 1999


                                                FOR ADDITIONAL INFORMATION

                                                R. Larry Campbell, President
                                                Carolina Fincorp, Inc.
                                                (910) 997-6245


                       CAROLINA FINCORP, INC. ANNOUNCES
                       APPROVAL OF STOCK REPURCHASE PLAN

     R. Larry Campbell, President of Carolina Fincorp, Inc., Rockingham, North
Carolina, announced that the Company's Board of Directors has adopted a stock
repurchase plan. Under the stock repurchase plan, Carolina Fincorp will be able
to repurchase shares of its outstanding common stock in the open market or in
privately negotiated transactions at times deemed appropriate. Mr. Campbell
stated, "The Board's action was based on its conclusion that the ability to
repurchase stock under certain appropriate circumstances will help the Company
enhance the value of its common stock for its stockholders and manage its
capital." Under the plan, as approved by the Board of Directors, Management
could repurchase up to five percent of the Company's currently outstanding
common stock without further Board approval when repurchases are considered
prudent and in accordance with purchase price limitations set forth in the
Board's approval of the Plan.

     The Company intends to make all repurchases in compliance with applicable
regulatory guidelines and to administer the plan in accordance with applicable
securities and other laws.

     As of December 31, 1998, Carolina Fincorp had consolidated assets of $116.6
million, consolidated stockholders' equity of $15.8 million and 1,905,545 shares
outstanding. The Company's wholly owned subsidiary, Richmond Savings Bank, Inc.,
SSB, provides banking services through its offices in Rockingham, Southern
Pines, Laurinburg and Ellerbe, North Carolina. The Company's common stock is
listed for quotation on the Nasdaq National Market under the symbol "CFNC".