May 4, 2001

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


                         GREENE COUNTY BANCSHARES, INC.
                       ANNOUNCES FIVE-FOR-ONE STOCK SPLIT

     (Greeneville,  Tennessee)  Greene County  Bancshares,  Inc. (the "Company")
announced  today  that on April  25,  2001,  the  Company's  Board of  Directors
declared a five-for-one split of its common stock, to be effected in the form of
a dividend. The payable date of the stock split is May 29, 2001, to stockholders
of record as of the close of business on May 15, 2001.

     According to R. Stan Puckett,  president of the Company,  "This stock split
will increase the liquidity of our stock and, together with our new relationship
with Morgan Keegan to facilitate  stock  transactions  by our  stockholders,  is
expected to further enhance stockholder value."

     The Company  serves as the bank holding  company for Greene  County Bank, a
Tennessee-chartered  commercial  bank.  Greene County Bank is  headquartered  in
Greeneville,  Tennessee and is the largest community bank in Tennessee,  with 26
branch  banks in twelve east  Tennessee  counties and one branch bank in western
North Carolina and $781.5 million in total assets as of March 31, 2001.

     This  news  release  contains  forward-looking   statements  regarding  the
Company. 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 the Company's filings
with the Securities and Exchange Commission.