For more information, contact:
                            Michael S. Patterson, Chairman, President and CEO or
                            Debra L. Lee, Chief Financial Officer, Triangle Bank
                                                    at (919) 881-0455 in Raleigh
              or, John A. Barker, President and CEO, United Federal Savings Bank
                                                at (919) 446-9191 in Rocky Mount


FOR IMMEDIATE RELEASE:                                             March 4, 1998

                TRIANGLE BANCORP AND UNITED FEDERAL SAVINGS BANK
                ANNOUNCE EXECUTION OF DEFINITIVE MERGER AGREEMENT

     RALEIGH,  NC . . . Triangle  Bancorp,  Inc.  (Triangle)  and United Federal
Savings Bank  (United) have executed a definitive  merger  agreement,  announced
Michael S. Patterson,  chairman,  president and CEO of Triangle.  This completes
the first phase of the merger,  under the terms of which United Federal  Savings
Bank will be merged into Triangle's wholly-owned subsidiary,  Triangle Bank. The
transaction  will be a  tax-free  stock  for  stock  exchange  of .63  shares of
Triangle  common  stock  for each  share of  United  common  stock,  subject  to
adjustment as provided in the merger agreement.

     As of December 31, 1997, Triangle, headquartered in Raleigh, reported total
assets of $1.6 billion, while United, headquartered in Rocky Mount, NC, reported
total assets of $304 million.

     In a statement following the signing of the agreement,  Mr. Patterson said,
"We are pleased with the opportunity this merger gives us to expand our presence
in several key  markets and to enter four  markets we do not serve at this time.
We look  forward  to  working  with the staff of  United  to make this  merger a
success for everyone,  especially the customers and  communities  served by both
organizations."

     According to John A. Barker,  president and CEO of United,  "We are pleased
to have  moved to the next  step in this  transaction.  Our  customers  can look
forward to a broader range of banking services, as well as additional offices to
serve their needs.  And, our 





stockholders will benefit from owning shares in a company which is listed on the
New York Stock  Exchange."

     It is anticipated  that the completion of the merger will take place during
the third quarter of 1998, subject to approval by the stockholders of United, as
well as applicable regulatory agencies.

     Triangle  is the holding  company  for  Triangle  Bank,  which  operates 56
offices in the Triangle  area and across North  Carolina;  Bank of  Mecklenburg,
which serves the Charlotte  market through 3 offices;  and Coastal  Leasing,  an
equipment  leasing company  headquartered  in Greenville,  NC. Triangle also has
signed a  definitive  merger  agreement to acquire  Guaranty  State Bank, a $104
million  bank  headquartered  in Durham,  NC.  Pending  approval  by  Guaranty's
stockholders  and  applicable  regulatory  authorities,  this  merger  should be
completed during the second quarter of 1998. 

                                      ###


NYSE Symbol -- TGL
www.trianglebank.com