Katahdin Bankshares Corp. Announces Dividend

Katahdin Bankshares Corp. (OTCQB:KTHN), parent company of Katahdin Trust Company, announced that it has declared a cash dividend of $.09 per share for the first quarter of 2012. In making the announcement Jon J. Prescott, Katahdin Trust Company President & CEO stated that it represented a 9.8% increase over last year's first quarter dividend. The dividend will be payable on March 26, 2012 to all shareholders of record as of March 12, 2012.   

Katahdin Bankshares Corp. stock is quoted on the OTC Markets quote board OTCQB under the symbol KTHN. Current stock information can be found at otcmarkets.com/home.

Katahdin Trust Company, established in 1918, provides banking services to individuals and businesses from 16 offices in northern and central Maine, online at www.katahdintrust.com, operates commercial loan offices in Bangor and Scarborough, and has announced the opening of a third branch office in Bangor in 2012.   

Katahdin Bankshares Corp. was recently recognized by US Banker Magazine as one of the Top 200 Community Banks in the country, for the fifth consecutive year.         

The Katahdin Bankshares Corp. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=7340

CONTACT: Vicki Smith, Senior Vice President
         Katahdin Trust Company
         Telephone:[phone], Ext. 135