First National Bank of the South Opens New Branch in Lexington, SC

LEXINGTON, SC – August 4, 2008 – First National Bank of the South announced today that it has opened a full-service branch in Lexington located at 5075 Sunset Boulevard, its fifth full-service branch in the Columbia market and twelfth branch overall.

The approximately 3,000-square-foot branch is now open in front of the Target shopping center, and a ribbon cutting ceremony and grand opening celebration are planned for August 7.

Jerry L. Calvert, President and CEO, said, We are very pleased to make the announcement that our branch in Lexington is now open. As a result, we are able to continue providing a full line of banking services to customers and fulfill the financial needs of the community with our expansion into the growing Lexington market.

Cynthia Hutchison will manage the new Lexington office, bringing with her over 20 years of experience. She was most recently employed by BB&T in Lexington as a Financial Center Leader. A native of Columbia, SC, Cynthia is a graduate of Columbia College.

Steve Waddell, Midlands Market Executive, said, Under Cynthia’s leadership, we look forward to serving the banking needs of Lexington from the branch’s convenient location and continuing First National’s tradition of superior customer service.

Joining Cynthia are Michelle Kirby and Beverly Knight, who serve as Lead Teller and Teller, respectively. Michelle was most recently employed by Fidelity National Information Services and brings with her over 10 years of industry experience. Beverly comes to First National after serving as a Senior Teller with BB&T and brings with her 10 years of banking experience.

The branch was designed by Ross & Associates, and the contractor was Summerfield Associates, Inc. The office features full-service banking capabilities, including business and personal account options, a night depository, a drive-thru ATM and three drive-thru lanes, opening at 8:30 a.m., Monday through Friday. The Lexington branch lobby is open from 9:00 a.m. to 5:00 p.m., Monday through Thursday and until 6:00 p.m. on Fridays.

A Grand Opening celebration is planned for Thursday, August 7, 2008, at the new office. The celebration will be held in conjunction with the Lexington Chamber of Commerce’s Business After Hours event. During this networking event, guests will have the opportunity to meet the branch staff and learn more about First National’s financial products and services. The public is invited to drop in between 9:00 a.m. to 5:00 p.m. and to attend the ribbon-cutting ceremony at 6:00 p.m. Following the ceremony, there will be entertainment and refreshments for the attendees.

As part of the ceremony, First National will be making a $1,000 donation to the Lexington Police Department’s Adopt-a-Cop program. Chief Terrence Green plans to attend the event and accept the donation.

For additional information on First National Bank of the South and the products available, Cynthia and her team can be contacted at 5075 Sunset Boulevard in Lexington, SC or by calling (803) 808-1244.

COMPANY HIGHLIGHTS

First National Bancshares, Inc. (Nasdaq: FNSC) is an $852.8-million asset bank holding company based in Spartanburg, South Carolina. Its common stock is traded on the NASDAQ Global Market under the symbol FNSC. It was incorporated in 1999 to conduct general banking business through its wholly-owned bank subsidiary, First National Bank of the South.

First National Bank of the South provides a wide range of financial services to consumer and commercial customers. The banking division operates 12 full-service branches, three in Spartanburg County operating as First National Bank of Spartanburg, and nine operating as First National Bank of the South in Columbia, Lexington, Charleston, Mount Pleasant, Greenville and Greer. First National has received approval from the Office of the Comptroller of the Currency (OCC) to open its thirteenth full-service branch and York County market headquarters in the Fort Mill/Tega Cay community, which is expected to open early in 2009. First National also operates loan production offices in Rock Hill, South Carolina and Indian Trail, North Carolina. First National Bank’s wholesale mortgage lending division provides services to community banks and mortgage brokers across the Southeast from its office in Greenville.

Additional information about First National is available online in the Investor Relations section of www.firstnational-online.com.