Company News

News Release
For more information, contact:
Sandra Temple
Senior Vice President & COO
stemple@northstatebank.com
919-787-9696

NORTH STATE BANK
PROMOTES AKERS TO DEPOSIT SUPPORT SUPERVISOR

June 30, 2005

Raleigh, NC…Kelly Sanchez Akers has been promoted to banking officer and deposit support supervisor for North State Bank, announced Sandra Temple, senior vice president and chief operations officer for the Bank.

"Growth at North State Bank has necessitated creating this position," said Temple. "Kelly is a real asset to our bank and our customers and brings a great deal of experience and knowledge to this role."

As deposit support supervisor, Akers will continue as branch auditor and will add responsibilities for the proof department and homeowner payment processing. She joined North State in 2002 as an office manager. She has more than 12 years of banking experience. Most of her career has been in the North Carolina market in positions such as regional service manager, branch manager, and branch auditor. She has extensive formal bank training, having completed a number of customer service management courses and American Institute of Banking (AIB) classes on banking principles and marketing financial services. She and her husband, Chris, live in Raleigh.

Founded in 2000, North State Bank is a full service community bank, currently serving Wake County through five offices: their headquarters and new banking office at North Hills in Raleigh, full-service offices on Falls of Neuse Road and Blue Ridge Road in Raleigh, a full-service office on Highway 70 West in Garner, and a loan production office at Wakefield Corporate Center in Wake Forest. North State Bancorp, the holding company for North State Bank, ended first quarter 2005 with $322 million in assets.

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North State Bancorp is listed on the OTC electronic bulletin board under the symbol "NSBC."

www.northstatebank.com

The information as of and for the quarter ended March 31, 2005 as presented is unaudited. This news release contains forward-looking statements. The actual results might differ materially from those projected in the forward-looking statements for various reasons, including our ability to manage growth, 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 Company's SEC filings, including its periodic reports under the Securities Exchange Act of 1934, as amended, copies of which are available upon request from the Company.

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