February 28, 2001

CONTACT: Stan Puckett, President                        FOR IMMEDIATE RELEASE
(423) 787-1227


             GREENE COUNTY BANK TO PURSUE ONLY NORTH CAROLINA BRANCH

     Greene  County  Bank,  a $780  million  commercial  bank  headquartered  in
Greeneville, Tennessee, which is wholly owned by Greene County Bancshares, Inc.,
has  amended  its  branch   purchase   agreement  with  Wachovia   Bank,   N.A.,
Winston-Salem,  North  Carolina.  The agreement  initially  provided that Greene
County Bank will purchase the Hot Springs, North Carolina and Abingdon, Virginia
branches of Wachovia Bank. Under the terms of the amendment,  Greene County Bank
will only purchase the Hot Springs, North Carolina branch.

     According to R. Stan Puckett,  president of Greene County Bank, "We believe
that this change better  positions  the Bank for the type of measured  growth in
the current economic environment that will contribute to our continued growth in
shareholder  value."  The  closing of this  transaction  is expected to occur in
mid-March 2001.

     This news release  contains  forward-looking  statements  regarding  Greene
County  Bancshares,   Inc.  All  forward-looking  statements  involve  risk  and
uncertainty  and actual  results could differ  materially  from the  anticipated
results or other expectations  expressed in the  forward-looking  statements.  A
discussion of factors that could cause actual results to differ  materially from
those expressed in the  forward-looking  statements is included in Greene County
Bancshares' filings with the Securities and Exchange Commission.