[The South Financial Group, Inc. Logo]
                                                           102 South Main Street
                                                            Greenville, SC 29601
                                                                    864.255.4919
PRESS RELEASE

Date:             January 8, 2001

Release Time:     Immediate



           THE SOUTH FINANCIAL GROUP COMMENCES REIT PREFERRED OFFERING


GREENVILLE,  SC - The  South  Financial  Group,  Inc.  (Nasdaq/NM:  TSFG)  today
announced that Carolina First Bank, its  wholly-owned  banking  subsidiary,  had
commenced an offering of REIT preferred shares.  The issuer of the securities is
Carolina First Mortgage Loan Trust, a South Carolina business trust (the "REIT")
that has been  qualified  as a "real  estate  investment  trust."  The REIT is a
subsidiary of Carolina First Bank.

This offering will not be registered  under the  Securities Act of 1933 or under
the securities  laws of any state,  and  securities  will not be offered or sold
except in accordance with applicable  exemptions from  registration  under state
and federal securities laws.

The securities  being offered are Series 2000A  Cumulative  Fixed Rate Preferred
Shares  and  Series  2000B  Cumulative   Floating  Rate  Preferred  Shares  (the
"Preferred  Shares").  The Preferred Shares pay cumulative  dividends and may be
redeemed under the circumstances described in their respective terms.

In December 2000, the REIT issued to Carolina First Bank Preferred Shares having
an  aggregate  stated  value of  approximately  $103 million in exchange for the
contribution  of assets.  Carolina  First  Bank is  offering  approximately  $50
million in stated value of these Preferred Shares in this offering.

The purpose of this offering is to provide  additional capital to Carolina First
Bank and  proceeds  for general  corporate  purposes of Carolina  First Bank.  A
portion  of the  proceeds  will be paid in the form of  dividends  to The  South
Financial  Group,  which  may use the  proceeds  for  its  previously  announced
repurchase  program of The South  Financial  Group  common stock and for general
corporate purposes.

The  offering  is being  made  only to  "accredited  investors"  and  "qualified
institutional  buyers",  as those terms are defined in federal  securities laws.
This  announcement  is not,  and should not be construed to be, an offer to sell
securities.


CONTACTS:
         William S. Hummers III, Executive Vice President, (864) 255-7913
         Mary M. Gentry, Treasurer, (864) 255-4919


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