12/13/2005 - CapitalSouth Bancorp IPO Priced

December 13, 2005. CapitalSouth Bancorp yesterday reached agreement with Sterne, Agee & Leach, Inc. to price an initial public offering of CapitalSouth's common stock at $18.75 per share. 600,000 shares are being sold in the offering pursuant to a firm underwriting commitment. Up to an additional 90,000 shares may be sold pursuant to an over-allotment option granted to Sterne, Agee & Leach, Inc. CapitalSouth's stock has been approved for trading on the NASDAQ National Market System under the ticker symbol "CAPB".

CapitalSouth Bancorp, through its bank subsidiaries CapitalSouth Bank and Capital Bank, provides a broad range of commercial banking services and products in the Birmingham, Huntsville and Montgomery, Alabama and Jacksonville, Florida markets.

A written prospectus relating to the offering may be obtained from Sterne, Agee & Leach, Inc. by writing to it at 800 Shades Creek Parkway, Suite 750, Birmingham, Alabama 35209.

A registration statement relating to these securities has been filed with, and declared effective by, the Securities and Exchange Commission.  This announcement shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful, prior to registration or qualification under the securities laws of such jurisdiction.