September 28, 2001

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

GREENE COUNTY BANK ENTERS INTO AGREEMENT TO PURCHASE THREE SUNTRUST  BRANCHES IN
HAWKINS COUNTY, TENNESSEE

(Greeneville,  Tennessee) -- Greene County Bank, Greeneville, Tennessee, entered
into a definitive agreement with SunTrust Bank on September 26, 2001 to purchase
three SunTrust Bank branches located in Hawkins County, Tennessee. Greene County
Bank is purchasing  SunTrust's Main Street and Park View branches in Rogersville
and its  Surgoinsville  branch in  Surgoinsville.  The acquired branches will be
operated by Greene County Bank as part of the current name "Hawkins County Bank,
a Greene  County Bank office." The  acquisitions  are subject to the approval of
banking regulators.

"This purchase  affirms our commitment to the people of Hawkins  County," Greene
County Bank President Stan Puckett said.  "Not only will this allow us to expand
our financial services and products, we hope our new and existing customers will
find banking with us to be easier and more convenient."

Greene County Bank is a wholly owned  subsidiary  of Greene  County  Bancshares,
Inc.,  which is headquartered  in Greeneville,  Tennessee.  As of June 30, 2001,
Greene County  Bancshares,  Inc. had total assets of approximately $765 million.
Greene County Bank is the largest community bank in East Tennessee and currently
has 28 branches  throughout  East  Tennessee,  including its branches in Hawkins
County.

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.