Press Release Details

BLAIRSVILLE, GA, Aug 29, 2008 (MARKET WIRE via COMTEX News Network) -- United Community Banks, Inc.'s (NASDAQ: UCBI) board of directors has approved the distribution on October 1, 2008 of the regular quarterly dividend to be paid in shares of common stock. The stock dividend is equal in value to the prior quarter's cash dividend of 9 cents per share, based on United's average thirty day closing stock price of $11.40 per share. The dividend rate is 0.7692 percent and the company will distribute one new share for every 130 shares held on the record date of September 5, 2008.

"Given the demanding nature and unknown duration of the current economic environment, and our commitment to managing through this downturn conservatively but proactively, we believe it is prudent to take steps to preserve capital," said Jimmy Tallent, president and chief executive officer. "However, we recognize that a dividend is important to many of our shareholders and believe this stock dividend is a good approach that meets a variety of needs and objectives. Shareholders who rely on cash dividends can choose to sell the additional shares, while others may decide to hold these shares and increase their investment in United at a time when the stock price is historically low."

Tallent cited the stock dividend as one of several steps the company has taken to conserve and bolster its capital position, including the recently announced addition of $30 million of regulatory capital by its subsidiary bank through subordinated debt.

Fractional shares will be paid in cash to registered shareholders based on the closing price of the stock on the record date. Fractional shares will be credited to the account of all other shareholders, including those enrolled in the company's dividend reinvestment plan and those whose shares are held in brokerage accounts.

Additional details concerning the stock dividend are available in the Investor Relations section of United's website and will be provided to shareholders in a company communication on the distribution date.

About United Community Banks, Inc.

Headquartered in Blairsville, United Community Banks is the third-largest bank holding company in Georgia. United Community Banks has assets of $8.3 billion and operates 27 community banks with 108 banking offices located throughout north Georgia, the Atlanta region, coastal Georgia, western North Carolina and east Tennessee. The company specializes in providing personalized community banking services to individuals and small- to mid-size businesses. United Community Banks also offers the convenience of 24-hour access through a network of ATMs, telephone and on-line banking. United Community Banks common stock is listed on the Nasdaq Global Select Market under the symbol UCBI. Additional information may be found at the company's web site at www.ucbi.com.

Safe Harbor

This news release contains forward-looking statements, as defined by Federal Securities Laws, including statements about financial outlook and business environment. These statements are provided to assist in the understanding of future financial performance and such performance involves risks and uncertainties that may cause actual results to differ materially from those in such statements. Any such statements are based on current expectations and involve a number of risks and uncertainties. For a discussion of some factors that may cause such forward-looking statements to differ materially from actual results, please refer to the section entitled "Forward-Looking Statements" on page 4 of United Community Banks, Inc.'s annual report filed on Form 10-K with the Securities and Exchange Commission.

For more information:
Rex S. Schuette
Chief Financial Officer
(706) 781-2266
Email Contact

SOURCE: United Community Banks, Inc.

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