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News Release
For more information, contact:
Paige Fly, Assistant Vice President/Marketing
pfly@northstatebank.com
919-855-9925

RAYFIELD AND VOSS JOIN MORTGAGE SERVICES AT NORTH STATE BANK

June 14, 2004

Raleigh, N.C…Allyson Rayfield and Mark Voss have joined the mortgage services staff of North State Bank announced Virginia Watson, senior vice president for mortgage services.

"Allyson and Mark both bring years of loan experience to our department," commented Watson. "Customers rely on our ability to provide knowledgeable answers and guidance in this area; Allyson and Mark are great additions to the team."

Rayfield joins North State as a senior mortgage loan officer. A graduate of Indiana University, she has 30 years of accounting experience, including 14 years in the mortgage business. For part of that time, she owned a mortgage company in Indianapolis, IN, and Knoxville, TN. Rayfield will be based in North State's office at the Wakefield Corporate Center near Wake Forest, NC, where she currently resides.

Voss will be a North State mortgage loan officer. His previous positions were as a loan officer for Guaranteed Home Mortgage and Met America Mortgage Banks. He will serve the Raleigh, NC area for North State working out of the Falls of Neuse office. He lives in Raleigh with his wife, Laura.

North State Bancorp is the holding company for North State Bank, a community bank serving Wake County with four offices: full-service offices on Falls of Neuse in Raleigh, on Highway 70 West in Garner, and in West Raleigh near Rex Hospital, and a loan production office in the Wakefield Corporate Center. Current plans call for a corporate headquarters and full-service location at the new North Hills on Six Forks Road in Raleigh in early 2005. As of March 31, 2003, North State Bancorp reported total assets of $281 million.

www.northstatebank.com


The information for the quarter ended March 31, 2004 is unaudited. This news release may contain forward-looking statements. The actual results might differ materially from those projected in 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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