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

Capital Bank Launches "Tuned-In Checking"

Checking account offers music as rewards

Raleigh, NC - March 7, 2008 - Capital Bank customers will soon be able to enjoy their extensive music collection courtesy of their checking account. The bank today announced the launch of "Tuned-In Checking," a free checking account designed for high school and college students as well as young professionals. This program offers free ATM fees and free iTunes credits to customers. The account requirements are similar to the bank´s Smart Checking account, which has seen much success since its launch in 2006.

"As with Smart Checking, we're giving something back to our customers: in this case, we're giving music and movie downloads," says B. Grant Yarber, president and CEO of Capital Bank. "Capital Bank is very focused on providing creative financial solutions that reward our customers, and we're looking forward to seeing the response to Tuned-In Checking."

Yarber continued, "We´re very committed to this generation´s financial education, and we´ve recently developed an online education center to help promote financial literacy. We hope all of our customers find this useful, including new Tuned-In Checking customers."

The requirements to receive rewards are simple. Customers must make at least 10 debit card transactions (excluding ATM transactions); have a valid email address in order to receive notifications that electronic statements are available to view; and they must log in to CB Connect (the bank´s online banking portal) at least once per statement cycle. If customers meet these conditions, they have the option of receiving either a free $9.99 iTunes album or up to ten $.99 iTunes songs each month. Even if the requirements are not met, customers will still have the benefit of free checking with nationwide ATM fees refunded each statement cycle.