EXHIBIT 99.1

NEWS RELEASE                                                   September 4, 2003


Contact:       Tony W. Wolfe
               President and Chief Executive Officer

               A. Joseph Lampron
               Executive Vice President and Chief Financial Officer

               828-464-5620, Fax 828-465-6780

For Immediate Release
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                              DIRECTOR RESIGNATION
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Peoples  Bancorp  of  North Carolina, Inc. the holding company for Peoples Bank,
announced  the  resignation of John H. Elmore, Jr., as a director of the company
and  bank  effective  September 3, 2003.  Elmore's resignation was prompted by a
desire to devote more of his time to other business endeavors.  Elmore stated in
his  resignation  letter  that  he  regretted the decision to resign and that he
considered  the  opportunity  to  serve  as  a  director  to  be  an honor and a
privilege.

The  announcement  of  Elmore's  resignation  was  made  by Robert C. Abernethy,
Chairman  of  the  board of directors.  Tony W. Wolfe, Peoples Bank's President,
stated  that "the board values John's contributions to the bank, and we wish him
well  in  his  business  interests."

Peoples  Bank operates eleven offices throughout Catawba County, North Carolina,
one  office  in  Alexander  County,  North Carolina and three offices in Lincoln
County,  North Carolina.  The Company's common stock is publicly traded over the
counter  and  is  quoted  on the Nasdaq National Market under the symbol "PEBK."
Scott  and  Stringfellow,  Inc., Ryan, Beck & Co., Sterne Agee & Leach, Inc. and
Trident Securities, Inc. are market makers for the Company's shares.