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

Capital Bank Offer's Multi-Million Dollar Federal Deposit Insurance Coverage on CD Investments

Raleigh, NC - July 30, 2008 - Beginning this week, Capital Bank customers have the ability to access multi-million dollar Federal Deposit Insurance through Capital Bank.

With the Certificate of Deposit Account Registry Service, or CDARS (pronounced 'cedars'), Capital Bank provides customers with the opportunity for a risk-free investment. Through a sophisticated computer network, Capital Bank places large deposits with other FDIC-insured banks, allowing customers to manage all their funds through one portfolio at Capital Bank. Those who want to combine the convenience of working with one financial institution with the security of FDIC insurance can benefit from CDARS.

"Capital Bank is pleased to offer this new and innovative FDIC product to our large-balance customers," said B. Grant Yarber, Capital Bank president and CEO. "Our customers can now enjoy the same confidence and security of traditional FDIC insurance, while benefitting from the convenience of working with one single financial institution, earning one interest rate and receiving one regular statement."

In 1980, Congress set FDIC coverage limits at $100,000 per account. Inflation over the past 26 years has eroded more than half the value of that coverage. Now, bankers using CDARS offer customers up to $50 million in FDIC insurance.

The American Bankers Association has endorsed the product saying, "CDARS allows banks to offer customers security as well as the convenience of one-stop shopping. It's good for banks, depositors and the economy."

For more information, please visit www.capitalbank-us.com.