Exhibit 99.1

Shore Bancshares, Inc. Acquires Assets of The Avon-Dixon Agency, Inc.
EASTON, Md., May 1, 2002

Shore Bancshares,  Inc. (the "Company")  (Nasdaq:  SHBI) announced today that it
has completed its purchase of certain assets of the The Avon-Dixon Agency,  Inc.
and its subsidiaries, all located in Easton, Maryland.

"Shore  Bancshares,  Inc. is pleased to announce  the addition of The Avon Dixon
Agency,  LLC,  Elliott Wilson  Insurance,  LLC and Mubell Finance,  LLC. Through
these  subsidiaries  the Company will be able to offer a full range of insurance
products  and  services.  We believe  our mutual  clientele  should soon see the
benefits of this  transaction.  One of the primary  considerations  driving this
acquisition was the ability to better serve our customers.  Accordingly, we will
be communicating  with our customers as to the additional  services available to
them.  Banking  products  and  services,  Insurance  products,  Long  Term  Care
Planning, Retirement and Financial Planning, as well as educational seminars for
individuals and small  businesses top the list of offerings,"  noted W. Moorhead
Vermilye, President and CEO of Shore Bancshares, Inc.

This transaction will be effective May 1, 2002.

Statements  made in this press release may include  forward  looking  statements
under the federal securities laws. Statements that are not historical in nature,
including the words "anticipate,"  "estimate,"  "should,"  "expect,"  "believe,"
"intend," "prospects," and similar expressions, are intended to identify forward
looking  statements.  While these  statements  reflect the Company's  good faith
beliefs,  they  are not  guarantees  of  future  performance,  involve  risk and
uncertainties that could cause actual results to differ materially.  The Company
disclaims  any  obligation  to  publicly  update or revise any  forward  looking
statement,  whether as a result of new information,  future events or otherwise.
For a discussion of risks and  uncertainties  that could cause actual results to
differ  materially from those contained in the forward looking  statements,  see
the Risk Factors  contained in the Company's  Annual Report on Form 10-K for the
last fiscal year.

SOURCE:  Shore Bancshares, Inc.