Peoples Bancorp Announces Cash Dividend

    NEWTON, N.C., Aug. 22 /EMWNews/ -- The Board of Directors

of Peoples Bancorp of North Carolina, Inc. (Nasdaq: PEBK) declared the

Company's regular cash dividend for the third quarter of 2008 in the amount

of 12 cents per share at their most recent meeting. The cash dividend will

be paid on September 15, 2008 to shareholders of record September 3, 2008.



    Shareholders are encouraged to enroll in the Company's Dividend

Reinvestment and Stock Purchase Plan. For details, you may contact the

Investor Relations Department at (828) 464-5620 or (800) 948-7195.



    Peoples Bank operates entirely in North Carolina, with eleven offices

throughout Catawba County, one office in Alexander County, three offices in

Lincoln County, three offices in Mecklenburg County, one office in Union

County, one office in Iredell County and one office in Wake County. The

Company's common stock is publicly traded over the counter and is quoted on

the Nasdaq Global Market under the symbol "PEBK."



    Statements made in this press release, other than those concerning

historical information, should be considered forward-looking statements

pursuant to the safe harbor provisions of the Securities Exchange Act of

1934 and the Private Securities Litigation Act of 1995. These

forward-looking statements are based on information currently available to

management and are subject to various risks and uncertainties, including

but not limited to those described in Peoples Bancorp of North Carolina,

Inc.'s annual report on Form 10-K for the year ended December 31, 2007,

under "General Description of Business" and otherwise in the Company's

reports and filings.