Crescent State Bank Joins Microcap Index

MMI Associates, Inc.
7406-H Chapel Hill Road
Raleigh, NC 27607
(919) 233-6600 • (919) 233-0300 (fax)
patty@mmimarketing.com

For Immediate Release Contact: Patty Briguglio (919) 233-6600

Crescent State Bank Joins Microcap Index
Community Bank Joins New Stock Index

Raleigh – Crescent State Bank, the wholly owned subsidiary of Crescent Financial Corporation (Nasdaq Small Cap CRFN), has announced that it has joined the Russell MicrocapÔ Index. The newly launched Russell Microcap Index debuted on July 1, 2005 and is a measurement of performance for the microcap segment. It is widely used by investment managers and institutional investors for index funds and as benchmarks for both passive and active investment strategies.

“Crescent State Bank is honored to be selected for the Russell Microcap Index,” said Michael Carlton, President. “Being listed in the index reflects our considerable earnings growth and will increase our visibility in the financial market.”

About the Russell MicrocapÔ Index:
The index offers portfolio managers and other investors a comprehensive, unbiased barometer to compare their performance against the genuine microcap marketplace of stocks. The newly launched Russell Microcap Index is comprised of the smallest 1,000 securities in the small-cap Russell 2000Ô Index based on a ranking of all U.S. equities by market capitalization.

About Crescent State Bank:
Crescent State Bank is a wholly owned subsidiary of Crescent Financial Corporation. The Bank opened in December 1998 to cater to the financial needs of the communities it serves. The bank has total assets of approximately $393 million, deposits of approximately $323 million, and loans of $297million as of June 30, 2005, with nine full service banking offices in the communities of Cary (2), Apex, Clayton, Garner, Holly Springs, Sanford, Southern Pines, and Pinehurst, North Carolina.
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Investors can access additional corporate information, product descriptions, and online services through the Bank’s website at http://www.crescentstatebank.com.

Information in this press release contains "forward-looking statements." These statements involve risks and uncertainties that could cause actual results to differ materially, including without limitation, the effects of future economic conditions, governmental fiscal and monetary policies, legislative and regulatory changes, the risks of changes in interest rates, and the effects of competition. Additional factors that could cause actual results to differ materially are discussed in Crescent Financial Corporation’s recent filings with the Securities and Exchange Commission, including, but not limited to, its Annual Report on Form 10-K and its other periodic reports.