Carolina First Selected for $60 Million in New Markets Tax Credit Allocation

GREENVILLE, S.C.--(Business Wire)--
Carolina First Bank, the banking subsidiary for The South Financial Group, Inc.
(NASDAQ: TSFG), announced that it received a $60 million tax credit allocation
as part of the 2009 round of the New Markets Tax Credit (NMTC) Program. The
Bank`s subsidiary, Carolina First Community Development Corporation (CFCDC), was
one of 99 recipients selected from across the nation to receive an aggregate
total of $5 billion in new allocations and the only recipient headquartered in
South Carolina. With this award, Carolina First has now received allocations for
three years in a row, following its awards in 2008 and 2007 of $100 million each
year.

Established by Congress in 2000, NMTC is a federal tax program designed to
stimulate community economic development and job creation in markets facing
economic challenges. Urban and rural low-income areas in Florida, North
Carolina, and South Carolina are the principal service areas for Carolina
First`s NMTC award.

"We view this new award as an endorsement of our continued leadership in
supporting economic development in challenged areas throughout our markets,"
said Charles D. Chamberlain, Managing Director of CFCDC. "With these funds, we
can continue to deliver resources that would favorably impact the per capita
income of our local communities during a time when the need to reach out is
crucial. Continued success in this program moves forward our efforts to make a
difference in the communities we serve."

The NMTC program provides a tax credit to investors for making "qualified equity
investments" in investment vehicles, known as Community Development Entities, in
low-income communities. The investors receive a tax credit, totaling 39 percent
of the qualified investment, over a seven-year period. Through CFCDC, Carolina
First has closed on over 11 projects, which deployed $62.5 million in tax credit
allocation and generated $138 million in total investments.

General Information

The South Financial Group is a bank holding company focused on serving small
businesses, middle market companies, and retail customers in the Carolinas and
Florida. At September 30, 2009, it had approximately $12.3 billion in total
assets and 177 branch offices. TSFG operates Carolina First Bank, which conducts
banking operations in North Carolina and South Carolina (as Carolina First
Bank), in Florida (as Mercantile Bank), and on the Internet (as Bank CaroLine).
At September 30, 2009, approximately 45% of TSFG`s total customer deposits were
in South Carolina, 43% were in Florida, and 12% were in North Carolina. Investor
information is available at www.thesouthgroup.com.

The South Financial Group, Inc.
James R. Gordon, Senior EVP & Chief Financial Officer, 864-552-9050
Mary M. Gentry, EVP - Investor Relations, 864-421-1068

Copyright Business Wire 2009