Murphy NC 28906

Ann Castle, assistant vice president of Appalachian Community Bank, recently donated $500 to Kenny Garland, principal of Hiwassee Dam High School.

This donation will be used to offset the cost of a new display case located in the high school gym, which will promote student achievement, college awareness, and the athletic accomplishments of the school’s students.

The Murphy, NC, office of Appalachian Community Bank, FSB, is located at 3000 West US 64, Suite 123, Murphy, NC 28906.

You can reach the bank by phone at the following numbers: 828-837-4150, Fax: 828-837-4150, Anytime Access (Toll Free): 1-888-493-2722.

ELLIJAY, Georgia, April 25, 2007 (PRIME NEWSWIRE) — Appalachian Bancshares Inc. (Nasdaq:APAB), the holding company of Appalachian Community Bank, today announced the grand opening of its new federally chartered thrift subsidiary, Appalachian Community Bank, F.S.B. The thrift’s operations are based in McCaysville, Ga.

Appalachian Community Bank, FSB, has completed the acquisition of Appalachian Community Bank’s existing banking center in McCaysville, and its loan production offices in Ducktown, Tenn., and Murphy, N.C., which have become full-service banking centers. The McCaysville office is located at 109 Blue Ridge Drive, the Ducktown office is located at 125 Five Points Drive and the Murphy banking center is located at 3000 West US 64.

“With the opening of our thrift operations, we can now deliver our full range of customer-focused community banking products and services to fast growing communities beyond the borders of our traditional North Georgia markets,” said Chief Executive Officer Tracy R. Newton. “We also are better positioned to become strong supporters of the communities that surround our new locations in southeastern Tennessee and western North Carolina.”

The new thrift offers customers a full array of community banking products and services, including checking and savings accounts, certificates of deposit, commercial and consumer loans, real estate financing, mortgage lending and other financial products.

“This important milestone gives us a great deal of flexibility for the long-term growth of our company,” said Joe Moss, president and chief operating officer. “Being able to branch into any state at a relatively low cost will allow us to strategically grow our banking franchise where and when it makes the most sense.”

About Appalachian Bancshares Inc.

Appalachian Bancshares Inc., based in Ellijay, Ga., is the $758 million-asset bank holding company of Appalachian Community Bank, a state-chartered bank organized under the laws of the State of Georgia, and Appalachian Community Bank, F.S.B., a federally chartered thrift. Through its subsidiaries, Appalachian Bancshares provides a full range of community banking services to individuals, small and medium-sized businesses, real estate developers, contractors and farmers. Appalachian Community Bank, which also operates under the trade name of Gilmer County Bank, has full-service banking offices throughout North Georgia in Ellijay, East Ellijay, Blue Ridge, Blairsville, Chatsworth and Dawsonville. Appalachian Community Bank, F.S.B. has full-service banking offices in McCaysville, Ga., Ducktown, Tenn., and Murphy, N.C. The common stock of Appalachian Bancshares is traded on the Nasdaq Global Market, under the symbol APAB. For more information, please visit the Company’s website at www.apab.com.

Mickey Maennle has joined First Citizens Bank, located in downtown Murphy, NC.

Maennle is a financial consultant based in the branch located at 22 Hiwassee Street, Murphy, NC 28906.

He received his bachelor’s degree from Western Carolina University in 1988.

Founded in 1898, First Citizens operates 340 branches in more than 200 cities and towns in North Carolina, Maryland, Tennessee, Virginia, and West Virginia. Headquartered in Raleigh, NC, the bank has $15.9 billion in assets.