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News Release
For more information, contact:
Sandra A. Temple
Senior Vice President and Chief Operations Officer
stemple@northstatebank.com
919-855-9925

CLARKE NAMED VICE PRESIDENT AND SENIOR COMMERCIAL BANKER FOR NORTH STATE BANK

December 27, 2004

Raleigh, N.C. ...Brian M. Clarke has been named vice president and senior commercial banker for North State Bank, announced Larry Barbour, president and CEO.

"We are pleased to have Brian join our banking team," said Barbour. "His experience in business banking will be a great asset to our Bank and our customers."

Prior to joining North State Bank, Clarke held positions in financial services as a business banking relationship manager and a sales executive/customer relationship manager. He holds a B.S. in accounting from North Carolina State University, where he was an honors student and a member of the All ACC Soccer Team. In the community, he serves on the advisory board for the Raleigh Chamber of Commerce and for the African-American Cultural Complex. A native of Jamaica, Clarke and his wife, Joan, live in Raleigh.

North State Bank is a community bank serving Wake County with four offices: full-service offices on Falls of Neuse in Raleigh, on Blue Ridge Road in Raleigh, and on Highway 70 West in Garner, and a loan production office in the Wakefield Corporate Center. In early 2005, a new corporate headquarters and full-service office will open at North Hills on Six Forks Road in Raleigh. As of September 30, 2004, North State Bancorp reported total assets of $298.4 million.

www.northstatebank.com

The information for the quarter ended September 30, 2004, is unaudited. This news release may contain forward-looking statements. The actual results might differ materially from those projected in the forward-looking statements for various reasons, including our limited operating history, substantial changes in financial markets, regulatory changes, changes in interest rates, loss of deposits and loan demand to other savings and financial institutions, and changes in real estate values and the real estate market. Additional information concerning factors that could cause actual results to materially differ from those in the forward-looking statements is contained in the Bank's FDIC filings, including its periodic reports under the Securities Exchange Act of 1934, as amended, copies of which are available upon request from the Bank.

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