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(CAROLINA FIRST BANCSHARES, INC. LOGO)

Dear Shareholder:

     I am very pleased to inform you of an important new benefit now being
offered to those shareholders participating in the Dividend Reinvestment and
Stock Purchase Plan ("Plan"). Effective July 1, 1999 the Plan will be opened to
allow additional cash contributions over and above the quarterly cash dividend
for those shareholders wishing to purchase Carolina First BancShares stock.

     This service is available on a monthly or quarterly basis for contributions
of not less than $50 and up to $2,500 per month ($7,500 per quarter) above the
quarterly dividend amount. Shareholders wishing to take advantage of this method
of purchasing additional shares may do so by sending a check to the Transfer
Agent each month (quarter) or by allowing the Bank to automatically deduct the
amount from your account. Any Carolina First shareholder of record owning 50 or
more shares of record is eligible to participate in the new Plan.

     We feel this will be a convenient and practical way for you to acquire
additional shares of stock in the company. For those desiring to enroll in the
Plan or to begin making additional cash purchases of shares, please complete the
enclosed Enrollment Card and return to us as soon as possible so we can get you
set up to start participation in this important shareholder service.

     Should you have any questions regarding the above, please contact Jan
Hollar or Sue Stamey at 704-732-2222 or 800-272-0222.

                                          Sincerely,

                                          /s/ James E. Burt, III
                                          --------------------------------------
                                          James E. Burt, III
                                          President & CEO