First Bancshares, Inc. Announces: First Bank of San Luis Obispo Founding Board Member Retires After 25 Years

Business Wire, Jan 3, 2005

SAN LUIS OBISPO, Calif. -- First Bancshares, Inc. ("Company")(Pink Sheets:FSLO), the holding company for First Bank of San Luis Obispo ("Bank"), today announced that Arnold A. Volny retired as a Director of the Company and the Bank on December 31, 2004. Mr. Volny, a long-time San Luis Obispo entrepreneur, developer, and builder, and owner of Volny Construction, was a founding Director of the Bank and has served in that role for the entire 25 years of the Bank's history.

Reflecting upon Mr. Volny's retirement, Reese T. Davies, President and Chief Operating Officer of the Company and Bank, stated: "Arnold Volny was instrumental in establishing the Bank back in 1980 as one of its seven original directors. Over the subsequent quarter century of exemplary service to the Bank, Arnold provided superior leadership, clear vision, and constant support. The Board of Directors will greatly miss his participation and contribution."

James E. Smith, Chairman of the Board, commented: "Arnold has always been and will forever be a part of our First Bank family. His twenty-five years of dedicated service to the Bank and so many local organizations is a great example of how one individual can meaningfully and positively impact his local community."

David R. Booker, Chief Executive Officer, added: "We honor Arnold for his achievements, both inside and outside the Bank, and look forward to his continued input as the Bank's second Director Emeritus."

When asked to comment on his retirement, Mr. Volny replied: "I have much enjoyed enhancing the quality of life in San Luis Obispo, both on my own as a builder and through the Bank's support of so many small businesses and community organizations. I am proud of the Bank's accomplishments over the past twenty-five years, and am confident in the Bank's future success."

First Bank of San Luis Obispo is a locally owned community bank with $271 million in assets as of September 30, 2004. The Bank offers business and consumer financial products with an emphasis on personal service.

For more information, contact Kristin Johnson, Business Development / Marketing Officer, at 805-541-6100, ext. 166 or e-mail kjohnson@firstbankslo.com. This news release is available at the www.firstbankslo.com Internet site for no charge.