September 18, 2002

CONTACT: William F. Richmond, S.V.P. & C.F.O.
423-787-1211

                                                           FOR IMMEDIATE RELEASE

         GREENE COUNTY BANCSHARES, INC. ANNOUNCES STOCK REPURCHASE PLAN

GREENEVILLE,  Tenn--Greene  County  Bancshares,  Inc. (Pink  Sheets:GRCB)  today
announced  that its Board of  Directors,  at its meeting on September  17, 2002,
authorized  the  repurchase of up to  $2,000,000  of the  company's  outstanding
common stock  beginning in October.  The repurchase  plan will be dependent upon
market  conditions and there is no guarantee as to the exact number of shares to
be  repurchased  by the  company.  The plan will be in effect for the earlier of
twelve months or until the total is repurchased.

"This repurchase reflects our confidence in the value of our stock and prospects
for future  performance," said Stan Puckett,  Greene County Bancshares  Chairman
and CEO.  Puckett  further  commented that the  repurchases  generally  would be
effected  through  open  market  purchases,  although  he did not  rule  out the
possibility of unsolicited negotiated transactions or other types of purchases.

Greene  County  Bancshares,  Inc. had  approximately  6.8 million  common shares
outstanding and approximately  1,843 shareholders of record as of June 30, 2002.
Its stock currently  trades in the  over-the-counter  market utilizing the "pink
sheet"  trading  format,  although  the company is in the process of listing its
shares on the Nasdaq National Market System.

Greene  County   Bancshares,   Inc.,  which  is  headquartered  in  Greeneville,
Tennessee, is the holding company for Greene County Bank. It had total assets of
approximately   $829  million  and  employed  384  individuals  on  a  full-time
equivalency  basis at June 30, 2002. Greene County Bank is the largest community
bank in East Tennessee and now has 29 branches throughout East Tennessee and one
branch in Western North Carolina. Greene County Bank does business in Washington
County,  Tennessee as Washington  County Bank; in Sullivan County,  Tennessee as
Sullivan  County Bank and First Bristol Bank;  in Hamblen  County,  Tennessee as
Hamblen County Bank; in Blount County,  Tennessee as American  Fidelity Bank; in
McMinn County, Tennessee as Bank of Athens and Bank of Niota; in Hawkins County,
Tennessee  as  Hawkins  County  Bank  and Bank of Bulls  Gap;  in Cocke  County,
Tennessee as Cocke County Bank; in Loudon County, Tennessee as Community Bank of
Loudon  County;  in Monroe  County,  Tennessee as Community  Trust Bank;  and in
Wilson County,  Tennessee as President's Trust. In addition,  Greene County Bank
also  conducts  separate  businesses  through three  wholly-owned  subsidiaries:
Superior Financial  Services,  Inc., a consumer finance company;  GCB Acceptance
Corporation,  a consumer  finance company  specializing  in subprime  automobile
lending; and Fairway Title Co., a title company.

This news release may contain 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 the Greene  County
Bancshares, Inc. filings with the Securities and Exchange Commission.