TowneBank Announces Quarterly Common Stock Cash Dividend

SUFFOLK, Va., Aug. 27, 2008 (GLOBE NEWSWIRE) -- Hampton Roads based TowneBank
(Nasdaq:TOWN) announced today that its Board of Directors on August 27, 2008
declared its third-quarter shareholder common stock cash dividend of $0.08 per
common share payable on October 10, 2008 to shareholders of record on October 1,
2008.

The amount and declaration of future cash dividends are subject to Board of
Director's approval in addition to regulatory restrictions.

G. Robert Aston, Jr., Chairman & Chief Executive Officer said, "We are pleased
to declare our regular quarterly common stock dividend representing the expected
continued financial success of our organization."

As one of Virginia's top community banks, TowneBank now operates 17 banking
offices in Chesapeake, Hampton, Portsmouth, Newport News, Virginia Beach,
Norfolk, Williamsburg and York County. Towne also offers a full range of
financial services through its controlled divisions and subsidiaries that
include Towne Investment Group, Towne Insurance Agency, TFA Benefits, TowneBank
Mortgage, TowneBank Commercial Mortgage, GSH Real Estate Corporation, TowneBank
1031 Exchange, LLC, Corolla Classic Vacations and Corolla Real Estate. Through
its strategic partnership with William E. Wood and Associates and Prudential
McCardle, the bank also offers mortgage services in all of the offices of both
companies in Hampton Roads and Northeastern North Carolina. Local
decision-making is a hallmark of its hometown banking strategy that is delivered
through the leadership of each group's President and Board of Directors. With
total assets of $2.72 billion as of June 30, 2008, TowneBank is the largest bank
headquartered in Hampton Roads.

Cautionary Statement:

This release contains forward-looking statements as defined by the Private
Securities Litigation Reform Act of 1995. These statements may address issues
that involve significant risks, uncertainties, estimates and assumptions made by
management. Factors that may cause actual results to differ materially from
those contemplated by such forward-looking statements include competitive
pressures in the banking industry that may increase significantly, changes in
the interest rate environment may reduce margins and/or the volumes and values
of loans made or held as well as the value of other financial assets held,
general economic conditions, either nationally or regionally, may be less
favorable than expected, resulting in, among other things, a deterioration in
credit quality and/or a reduced demand for credit or other services, changes in
the legislative or regulatory environment, including changes in accounting
standards, may adversely affect our businesses, costs or difficulties related to
the integration of the business and the businesses we have acquired may be
greater than expected, expected cost savings associated with pending or recently
completed acquisitions may not be fully realized or realized within the expected
time frame, our competitors may have greater financial resources and develop
products that enable them to compete more successfully, changes in business
conditions, changes in the securities market and changes in our local economy
with regards to our market area and its heavy concentration of U.S. military
bases and related personnel. We assume no obligation to update information
contained in this release.

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CONTACT: TowneBank
G. Robert Aston, Jr. Chairman and CEO
(757) 638-6780
R. Scott Morgan, President and
Senior Loan Officer
(757) 638-6783
Clyde E. McFarland, Jr., Senior Executive
Vice President and CFO
(757) 638-6801