CONTACT:
B. Grant Yarber
President and Chief Executive Officer           
Phone: (919) 645-3494
Email: gyarber@capitabank-nc.com

Capital Bank Announces New City Executive
David Adams to lead Raleigh commercial team

RALEIGH, N.C. – August 15, 2007 – Capital Bank announced that David Adams has been hired as Raleigh City Executive and leader of the Raleigh commercial team.

“Capital Bank is a progressive-thinking team of professional bankers who are dedicated to growing a local, first-class organization,” said Adams. “I am honored to join Capital Bank and look forward to leading the bank’s commercial lending and administrative associates.”

Adams has a Bachelor of Science in Business Administration with a concentration in Marketing and Speech Communications from the University of North Carolina at Chapel Hill. He also holds a Master of Business Administration with a concentration in Finance from East Carolina University. A native of Raleigh, he currently resides with his wife and three children in Holly Springs where he enjoys hunting and fly-fishing.

“David is a great addition to Capital Bank, and we are confident his background in commercial lending will strengthen our commercial lending team,” said David Morgan, Executive Vice President and Chief Banking Officer for Capital Bank.