KTHN Katahdin Bankshares Corporation (QX)

Katahdin Bankshares Corp. (OTCBB:KTHN), parent company of Katahdin Trust Company, has been named a Top 200 Community Bank by U.S. Banker magazine. This is the fourth consecutive year the bank has received this recognition. The rating was based on the bank's three-year average Return on Equity (ROE). The ratio is a common gauge in the banking industry which essentially measures a bank's ability to create profits based on its shareholder equity. The listing was created by year-end 2009 results and included public banks and thrifts with less than two billion in assets that are listed on major exchanges and the bulletin board.

Jon Prescott, President and Chief Executive Officer of Katahdin Trust Company, noted the bank's performance reflected "the high level of support and dedication to the bank by its employees, and for their can-do attitude which is displayed daily, enabling us to receive this recognition."

"We consider it an honor to be named in the Top 200 community banks in America," Prescott said. "But of greater importance in today's economy, it's important for our customers and communities to take great confidence in the knowledge of our bank's strength and fiscal integrity. Many families and business owners will be confident knowing that one of the top banks in the United States is just around the corner."

Katahdin Trust Company serves personal and commercial customers from 14 locations across northern Maine and will be opening full-service offices on Broadway, Bangor in August, 2010 and Hampden in 2011. It also maintains loan production offices in Bangor and Scarborough and is available online at www.katahdintrust.com. Katahdin Trust Company is owned by the one-bank holding company, Katahdin Bankshares Corp., (OTCBB:KTHN) which is quoted on the Over-The-Counter Bulletin Board (OTCBB) under the symbol KTHN. Current stock information can be found on the OTCBB website at www.otcbb.com.

The Katahdin Bankshares Corp. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=7340

CONTACT: Katahdin Trust Company
         Vicki Smith, Senior Vice President
         (207) 521-0455, Ext. 135