PCBN Piedmont Community Bank Group Inc (CE)

Piedmont Community Bank Group, Inc. (OTC Bulletin Board: PCBN) today announced 2008 year-end results which included a consolidated net loss of $1.5 million, as compared to consolidated net income of $669,000 for the year ended December 31, 2007.

The $1.5 million net loss for 2008 included provisions for loan losses of $2.1 million, a decrease in net interest income of $1.5 million over the prior year and increased operating expenses of $1 million. Total reserves were maintained at 1.53% of total loans at December 31, 2008 as compared to 1.04% at December 31, 2007. The decrease in net interest income was due to increased non-performing assets and the rapid decreases in the prime lending rate during the year as a majority of the bank�s loans have floating rates. The increases in operating expenses were due to the addition of a new office in Monroe County during 2008 and the write off of issuance costs on the abandonment of a common stock offering. �As a community bank, we are a reflection of the markets we serve,� stated CEO Drew Hulsey. �During the last half of 2008, the local and national economy experienced a radical downturn, the likes of which many of us have not witnessed before. This has resulted in asset quality deterioration. Capital was set aside in the form of loan loss reserves to cover potential losses wherever we believe they exist in the loan portfolio. Early in the year, when rates began to fall, we reacted by increasing the number of floating rate loans with rate floors to lessen the impact of falling rates. Throughout the year, we made extensive expense cuts, including the closing of our Lake Oconee office, to better position ourselves to weather this economic storm.�

Despite the net loss for the year, the bank remains well capitalized by current regulatory guidelines. �We are continually monitoring our capital position and are taking proactive steps to maintain the bank�s Tier 1 and Total Risk Based Capital levels above the requirements for well capitalized status,� stated CEO Hulsey. �Our objectives for the current year are preservation of capital, increased liquidity, improved asset quality and continued excellent customer service.�

Total consolidated assets increased from $213 million at December 31, 2007 to $258 million at December 31, 2008, an increase of 21%. Total deposits and total gross loans grew 23% and 8%, respectively, during 2008 with deposits totaling $221 million and gross loans totaling $192 million at December 31, 2008.

About Piedmont Community Bank Group:

Piedmont Community Bank Group, Inc. is the holding company for Piedmont Community Bank, a community bank headquartered in Gray, Georgia (the �Bank�). In addition to the main office in Gray, the Bank now operates three branch offices at the following locations: 1611 Bass Road and 4511 Forsyth Road, both in Macon, Georgia and 76 E. Johnston Street in Forsyth, Georgia. Piedmont Community Bank Group�s common stock is traded over-the-counter under the symbol �PCBN�. The Bank�s primary service area is Jones, Bibb, Baldwin, Putnam, Greene, Houston, and Monroe counties.

Forward-Looking Statements

Statements made in this press release, other than those concerning historical information, should be considered forward-looking and subject to various risks and uncertainties. Such forward-looking statements are made based upon management�s belief as well as assumptions made by, and information currently available to, management pursuant to �safe harbor� provisions of the Private Securities Litigation Reform Act of 1995. Our actual results may differ materially from the results anticipated in forward-looking statements due to a variety of factors, including governmental monetary and fiscal policies, deposit levels, loan demand, loan collateral values, securities portfolio values, interest rate risk management, the effects of competition in the banking business from other commercial banks, thrifts, mortgage banking firms, consumer finance companies, credit unions, securities brokerage firms, insurance companies, money market funds and other financial institutions operating in our market area and elsewhere, including institutions operating through the Internet, changes in governmental regulation relating to the banking industry, including regulations relating to branching and acquisitions, failure of assumptions underlying the establishment of reserves for loan losses, including the value of collateral underlying delinquent loans, and other factors. We caution that such factors are not exclusive. We do not undertake to update any forward-looking statement that may be made from time to time by, or on behalf of, us.

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