LSB Bancshares, Inc. and FNB Financial Services Corporation Announce Shareholder Approvals of Merger of Equals

LEXINGTON and GREENSBORO, N.C., July 26  /PRNewswire-FirstCall/ -- The shareholders of LSB Bancshares, Inc. and FNB Financial Services Corporation overwhelmingly approved the Agreement and Plan of Merger of LSB and FNB at their respective shareholder meetings on July 25, 2007.  Under the Agreement, FNB will merge into LSB with the combined company being named NewBridge Bancorp.  The Company will be headquartered in Greensboro and its outstanding shares will be traded on the Nasdaq Global Market under the symbol "NBBC".

"We are excited that our shareholders have recognized the significant advantages that this merger of equals will provide.  Our goal is to respond to this strong support by utilizing these advantages to develop a high performing bank which generates earnings which will enhance shareholder value," said Robert F. Lowe, Chairman and Chief Executive Officer of NewBridge.

Pressley A. Ridgill, President of NewBridge and the President and Chief Executive Officer of NewBridge Bank upon the merger of NewBridge's banking subsidiaries said:  "We have passed a significant milestone in the combination of LSB and FNB.  We are honored by our shareholders' confidence in the combined management team.  There is, however, much left to do.  Our management team, composed of senior executives from each of LSB and FNB, is focused upon integrating our organizations, cutting costs without reducing the quality of our services or our commitments to our communities, and continuing our joint heritage as a community bank with the resources to help our customers cross barriers to their financial security.  Our job is to enable our customer to connect with their goals, to provide them with a bridge to their future."

The merger of LSB and FNB is expected to be effective on July 31, 2007. The merger of NewBridge's banking subsidiaries, Lexington State Bank and FNB Southeast, into NewBridge Bank is anticipated to close in early November of this year.  The Bank will maintain its operations facilities in Lexington and Reidsville, North Carolina.

NewBridge will have 40 banking offices located in the Piedmont Triad of North Carolina, the Wilmington, North Carolina area, and the area surrounding Harrisonburg, Virginia.  It will have approximately $2.0 billion in assets and shareholders' equity in excess of $164 million.

Contact:  Robert F. Lowe for LSB - 336-248-6500

Pressley A. Ridgill for FNB - 336-369-0900 

DATASOURCE: LSB Bancshares, Inc.



CONTACT:  Robert F. Lowe for LSB, [phone], or Pressley A. Ridgill

for FNB, [phone]



Web site:  http://www.lsbnc.com/

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