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

Capital Bank Announces New Hires

Bank welcomes new personnel in Burlington, Sandhills

Raleigh, NC - April 1, 2008- Capital Bank today announced Todd Baker has joined the Sandhills Region team as Senior Vice President, Area Executive. Additionally, Steve Carter has joined the Burlington team as Senior Vice President, City Executive.

"We make it a priority at Capital Bank to attract extraordinary talent with a strong banking background as well as a community focus," said B. Grant Yarber, president and CEO. "Todd and Steve make excellent additions to the Sandhills and Burlington teams and we know we'll see continued success from both of them with Capital Bank."

Todd Baker has been in the banking industry for over 13 years. During this time, he has worked in areas such as commercial credit, commercial lending and construction lending. Todd graduated from the University of Virginia in Charlottesville with a degree in economics. He has a 10-year-old son and enjoys reading, running and golfing in his spare time.

"Capital Bank is an organization with a great deal of energy and talent, and I am looking forward to becoming a part of the team in Lee and Chatham counties," said Baker.

Steve Carter is a 34-year veteran of the banking industry and has held a variety of positions including branch manager, commercial banker, area commercial banking manager and market president. He is actively involved in the Burlington community as a member of the board of the Alamance County Community YMCA and is also a member of Grove Park Baptist Church, the Alamance Rotary Club and the Alamance Wildlife Club.

"This position is an opportunity for me to be part of a community bank with a long heritage of community service while leading and building a strong, experienced local team," said Carter.