**UNITED      STATES**

**SECURITIES      AND EXCHANGE COMMISSION**

**Washington,      D.C. 20549**

**FORM      10-Q**

**For      the quarterly period ended March 31, 2007**

**0-14289**

**GREENE      COUNTY BANCSHARES, INC.**

| ** Tennessee   **                                  | **62-1222567**                                                                         |
|------------------------------------------------------------------------|----------------------------------------------------------------------------------------|
| (State                or other jurisdiction of                         | (I.R.S.                Employer Identification No.)                                    |
| incorporation                or organization)                          |                                                                                   |
|                                                                   |                                                                                   |
| **100                North Main Street, Greeneville, Tennessee ** | **      37743-4992      ** |
| (Address                of principal executive offices)                | (Zip                Code)                                                              |

----

**PART      1 - FINANCIAL INFORMATION**

**ITEM      1.    FINANCIAL      STATEMENTS**

----

**GREENE      COUNTY BANCSHARES, INC.**

**CONDENSED      CONSOLIDATED BALANCE SHEETS**

**March      31, 2007 and December 31, 2006**

**(Amounts      in thousands, except share and per share data)**

----

|                                                                                                                                                                                                                                                                                |   | **(Unaudited)****March                31,****2007** |      |  **December                31,****2006*** |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------------------------|-----------|------------------------------------------------|--------|
| **ASSETS**                                                                                                                                                                                                                                                                          |   |                                                |      |                                           |   |
| Cash                and due from banks                                                                                                                                                                                                                                              |   | $                                                   | 34,729    |                                           | $      | 44,657 |   |
|                                                                                                                                                                                                                                                                                |   |                                                |      |                                           |   |   |   |
| Federal                funds sold and other                                                                                                                                                                                                                                         |   |                                                | 20,069    |                                           |   | 25,983 |   |
|                                                                                                                                                                                                                                                                                |   |                                                |      |                                           |   |   |   |
| Securities                available for sale                                                                                                                                                                                                                                        |   |                                                | 45,587    |                                           |   | 37,740 |   |
|                                                                                                                                                                                                                                                                                |   |                                                |      |                                           |   |   |   |
| Securities                held to maturity (with a market value of $1,640 and                $2,544)                                                                                                                                                                                |   |                                                | 1,644     |                                           |   | 2,545 |   |
|                                                                                                                                                                                                                                                                                |   |                                                |      |                                           |   |   |   |
| FHLB,                Bankers Bank and other stock, at cost                                                                                                                                                                                                                          |   |                                                | 7,055     |                                           |   | 7,055 |   |
|                                                                                                                                                                                                                                                                                |   |                                                |      |                                           |   |   |   |
| Loans                held for sale                                                                                                                                                                                                                                                  |   |                                                | 2,405     |                                           |   | 1,772 |   |
|                                                                                                                                                                                                                                                                                |   |                                                |      |                                           |   |   |   |
| Loans,                net of unearned interest                                                                                                                                                                                                                                      |   |                                                | 1,603,281 |                                           |   | 1,539,629 |   |
|                                                                                                                                                                                                                                                                                |   |                                                |      |                                           |   |   |   |
| Allowance                for loan losses                                                                                                                                                                                                                                            |   |                                                | (22,932   | )                                              |   | (22,302 | ) |
|                                                                                                                                                                                                                                                                                |   |                                                |      |                                           |   |   |   |
| Premises                and equipment, net                                                                                                                                                                                                                                          |   |                                                | 58,722    |                                           |   | 57,258 |   |
|                                                                                                                                                                                                                                                                                |   |                                                |      |                                           |   |   |   |
|                      Goodwill and other intangible assets                                                                                                                                                                                                  |   |                                                | 38,270    |                                           |   | 38,540 |   |
|                                                                                                                                                                                                                                                                                |   |                                                |      |                                           |   |   |   |
| Other                assets                                                                                                                                                                                                                                                         |   |                                                | 38,804    |                                           |   | 39,777 |   |
|                                                                                                                                                                                                                                                                                |   |                                                |      |                                           |   |   |   |
|       Total                assets                                                                                                                                                                                                                     |   | $                                                   | 1,827,634 |                                           | $      | 1,772,654 |   |
|                                                                                                                                                                                                                                                                                |   |                                                |      |                                           |   |   |   |
| **LIABILITIES                AND SHAREHOLDERS’ EQUITY**                                                                                                                                                                                                                       |   |                                                |      |                                           |   |   |   |
|                                                                                                                                                                                                                                                                                |   |                                                |      |                                           |   |   |   |
| Liabilities                                                                                                                                                                                                                                                                         |   |                                                |      |                                           |   |   |   |
|                                                                                                                                                                                                                                                                                |   |                                                |      |                                           |   |   |   |
| Deposits                                                                                                                                                                                                                                                                            |   | $                                                   | 1,390,442 |                                           | $      | 1,332,505 |   |
|                                                                                                                                                                                                                                                                                |   |                                                |      |                                           |   |   |   |
|                      Federal funds purchased                                                                                                                                                                                                               |   |                                                | 17,415    |                                           |   | 20,000 |   |
|                                                                                                                                                                                                                                                                                |   |                                                |      |                                           |   |   |   |
| Repurchase                agreements                                                                                                                                                                                                                                                |   |                                                | 24,157    |                                           |   | 22,165 |   |
|                                                                                                                                                                                                                                                                                |   |                                                |      |                                           |   |   |   |
| FHLB                advances and notes payable                                                                                                                                                                                                                                      |   |                                                | 171,877   |                                           |   | 177,571 |   |
|                                                                                                                                                                                                                                                                                |   |                                                |      |                                           |   |   |   |
|                      Subordinated debentures                                                                                                                                                                                                               |   |                                                | 13,403    |                                           |   | 13,403 |   |
|                                                                                                                                                                                                                                                                                |   |                                                |      |                                           |   |   |   |
| Accrued                interest payable and other liabilities                                                                                                                                                                                                                       |   |                                                | 20,343    |                                           |   | 22,539 |   |
|                                                                                                                                                                                                                                                                                |   |                                                |      |                                           |   |   |   |
| Total                liabilities                                                                                                                                                                                                                                                    |   |                                                | 1,637,637 |                                           |   | 1,588,183 |   |
|                                                                                                                                                                                                                                                                                |   |                                                |      |                                           |   |   |   |
| Shareholders’                equity                                                                                                                                                                                                                                           |   |                                                |      |                                           |   |   |   |
| Common                stock: $2 par, 15,000,000 shares authorized,9,819,218                and 9,810,867 shares outstanding                                                                                                                                                         |   |                                                | 19,638    |                                           |   | 19,622 |   |
|                                                                                                                                                                                                                                                                                |   |                                                |      |                                           |   |   |   |
| Additional                paid-in capital                                                                                                                                                                                                                                           |   |                                                | 72,156    |                                           |   | 71,828 |   |
|                                                                                                                                                                                                                                                                                |   |                                                |      |                                           |   |   |   |
| Retained                earnings                                                                                                                                                                                                                                                    |   |                                                | 98,291    |                                           |   | 93,150 |   |
|                                                                                                                                                                                                                                                                                |   |                                                |      |                                           |   |   |   |
| Accumulated                other comprehensive loss                                                                                                                                                                                                                                 |   |                                                | (88       | )                                              |   | (129 | ) |
|                                                                                                                                                                                                                                                                                |   |                                                |      |                                           |   |   |   |
| Total                shareholders’ equity                                                                                                                                                                                                                                     |   |                                                | 189,997   |                                           |   | 184,471 |   |
|                                                                                                                                                                                                                                                                                |   |                                                |      |                                           |   |   |   |
|         Total                liabilities and shareholders’ equity                                                                                                                                                                     |   | $                                                   | 1,827,634 |                                           | $      | 1,772,654 |   |
|                                                                                                                                                                                                                                                                                |   |                                                |      |                                           |   |   |   |
| *                This condensed consolidated balance sheet has been derived from the                audited consolidated balance sheet, as filed in                  the Company's Annual Report on Form 10-K for the fiscal year ended                December 31, 2006. |

----

----

**GREENE      COUNTY BANCSHARES, INC.**

**CONDENSED      CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME**

**Three      Months Ended March 31, 2007 and 2006**

**(Amounts      in thousands, except share and per share data)**

----

|                                                                                   |   | **Three                Months Ended****March                31,** |      |
|----------------------------------------------------------------------------------------|--------|-------------------------------------------------------------------|-----------|
|                                                                                   |   | **2007**                                                          |      | **2006** |   |
| ** **                                                                             |   | **(Unaudited)**                                                   |      |
|                                                                                   |   |                                                              |      |   |   |
| Interest                income                                                         |   |                                                              |      |   |   |
| Interest                and fees on loans                                              |   | $                                                                 | 31,915    |   | $ | 26,100 |   |
| Investment                securities                                                   |   |                                                              | 708       |   |   | 631 |   |
| Federal                funds sold and other                                            |   |                                                              | 15        |   |   | 36 |   |
|                                                                                   |   |                                                              | 32,638    |   |   | 26,767 |   |
|                                                                                   |   |                                                              |      |   |   |   |   |
| Interest                expense                                                        |   |                                                              |      |   |   |   |   |
| Deposits                                                                               |   |                                                              | 11,153    |   |   | 8,042 |   |
| Borrowings                                                                             |   |                                                              | 2,664     |   |   | 1,539 |   |
|                                                                                   |   |                                                              | 13,817    |   |   | 9,581 |   |
|                                                                                   |   |                                                              |      |   |   |   |   |
| Net                interest income                                                     |   |                                                              | 18,821    |   |   | 17,186 |   |
|                                                                                   |   |                                                              |      |   |   |   |   |
| Provision                for loan losses                                               |   |                                                              | 974       |   |   | 1,064 |   |
|                                                                                   |   |                                                              |      |   |   |   |   |
| Net                interest income after provisionfor                loan losses  |   |                                                              | 17,847    |   |   | 16,122 |   |
|                                                                                   |   |                                                              |      |   |   |   |   |
| Noninterest                income                                                      |   |                                                              |      |   |   |   |   |
| Service                charges and fees                                                |   |                                                              | 4,289     |   |   | 3,231 |   |
| Other                                                                                  |   |                                                              | 1,110     |   |   | 1,524 |   |
|                                                                                   |   |                                                              | 5,399     |   |   | 4,755 |   |
|                                                                                   |   |                                                              |      |   |   |   |   |
| Noninterest                expense                                                     |   |                                                              |      |   |   |   |   |
| Salaries                and employee benefits                                          |   |                                                              | 7,458     |   |   | 6,391 |   |
| Occupancy                and furniture and equipment expense                           |   |                                                              | 2,096     |   |   | 2,059 |   |
| Other                                                                                  |   |                                                              | 4,488     |   |   | 4,256 |   |
|                                                                                   |   |                                                              | 14,042    |   |   | 12,706 |   |
|                                                                                   |   |                                                              |      |   |   |   |   |
| Income                before income taxes                                              |   |                                                              | 9,204     |   |   | 8,171 |   |
|                                                                                   |   |                                                              |      |   |   |   |   |
| Provision                for income taxes                                              |   |                                                              | 3,588     |   |   | 3,075 |   |
|                                                                                   |   |                                                              |      |   |   |   |   |
| Net                income                                                              |   | $                                                                 | 5,616     |   | $ | 5,096 |   |
|                                                                                   |   |                                                              |      |   |   |   |   |
| Comprehensive                Income                                                    |   | $                                                                 | 5,657     |   | $ | 5,089 |   |
|                                                                                   |   |                                                              |      |   |   |   |   |
| Per                share of common stock:                                              |   |                                                              |      |   |   |   |   |
| Basic                earnings                                                          |   | $                                                                 | 0.57      |   | $ | 0.52 |   |
| Diluted                earnings                                                        |   |                                                              | 0.57      |   |   | 0.52 |   |
| Dividends                                                                              |   |                                                              | 0.13      |   |   | 0.12 |   |
|                                                                                   |   |                                                              |      |   |   |   |   |
| Weighted                average shares outstanding:                                    |   |                                                              |      |   |   |   |   |
| Basic                                                                                  |   |                                                              | 9,815,452 |   |   | 9,770,555 |   |
| Diluted                                                                                |   |                                                              | 9,910,315 |   |   | 9,870,691 |   |

----

----

**GREENE      COUNTY BANCSHARES, INC.**

**CONDENSED      CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY**

**For      the Three Months Ended March 31, 2007**

**(Amounts      in thousands, except share and per share data)**

----

|                                                                                                                                              |   |            |   | ** **     |   | ** **   |   | **Accumulated** |   | ** **         |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------|--------|----------------|--------|--------------|--------|-----------------|--------|--------------------|--------|
| ** **                                                                                                                                        |   | ** **      |   | ** **     |   | ** **   |   | **Other**       |   | **Total**          |   |
| ** **                                                                                                                                        |   | ** **      |   | **Additional** |   | ** **   |   | **Compre-**     |   | **Share-**         |   |
| ** **                                                                                                                                        |   | **Common**      |   | **Paid-in**    |   | **Retained** |   | **hensive**     |   | **holders’** |   |
| ** **                                                                                                                                        |   | **Stock**       |   | **Capital**    |   | **Earnings** |   | **Loss**        |   | **Equity**         |   |
|                                                                                                                                              |   | **(Unaudited)** |   |
|                                                                                                                                              |   |            |   |           |   |         |   |            |   |               |   |
| **Balance,                December 31, 2006**                                                                                                     |   | $               | 19,622 |           | $      | 71,828       |   | $               | 93,150 |               | $      | (129 | ) | $ | 184,471 |   |
|                                                                                                                                              |   |            |   |           |   |         |   |            |   |               |   |   |   |   |   |   |
| Common                stock transactions:                                                                                                         |   |            |   |           |   |         |   |            |   |               |   |   |   |   |   |   |
|                  Exercise of 8,351 shares under                   stock option plan                                           |   |            | 16     |           |   | 207          |   |            | -      |               |   | - |   |   | 223 |   |
| Stock-based                compensation                                                                                                           |   |            | -      |           |   | 112          |   |            | -      |               |   | - |   |   | 112 |   |
| Tax                benefit from exercise of                   nonincentive stock options                                           |   |            | -      |           |   | 9            |   |            | -      |               |   | - |   |   | 9 |   |
| Implementation                of FIN 48                                                                                                           |   |            | -      |           |   | -            |   |            | 800    |               |   | - |   |   | 800 |   |
| Dividends                paid ($.13 per share)                                                                                                    |   |            | -      |           |   | -            |   |            | (1,275 | )                  |   | - |   |   | (1,275 | ) |
| Comprehensive                income:                                                                                                              |   |            |   |           |   |         |   |            |   |               |   |   |   |   |   |   |
| Net                income                                                                                                                         |   |            | -      |           |   | -            |   |            | 5,616  |               |   | - |   |   | 5,616 |   |
| Change                in unrealized gains                 (losses), net of reclassification                    and taxes |   |            | -      |           |   | -            |   |            | -      |               |   | 41 |   |   | 41 |   |
| Total                comprehensive income                                                                                                         |   |            |   |           |   |         |   |            |   |               |   |   |   |   | 5,657 |   |
|                                                                                                                                              |   |            |   |           |   |         |   |            |   |               |   |   |   |   |   |   |
| **Balance,                March 31, 2007**                                                                                                        |   | $               | 19,638 |           | $      | 72,156       |   | $               | 98,291 |               | $      | (88 | ) | $ | 189,997 |   |

----

----

**GREENE      COUNTY BANCSHARES, INC.**

**CONDENSED      CONSOLIDATED STATEMENTS OF CASH FLOWS**

**For      the Three Months Ended March 31, 2007 and 2006**

**(Amounts      in thousands, except share and per share data)**

----

| ** **                                                                                                    |   | **March                31,** |    | **March                31,** |   |
|---------------------------------------------------------------------------------------------------------------|--------|------------------------------|---------|------------------------------|--------|
| ** **                                                                                                    |   | **2007**                     |    | **2006**                     |   |
| ** **                                                                                                    |   | **(Unaudited)**              |    |
| **Cash                flows from operating activities**                                                       |   |                         |    |                         |   |
| Net                income                                                                                     |   | $                            | 5,616   |                         | $      | 5,096 |   |
| Adjustments                to reconcile net income to net cash provided byoperating                activities |   |                         |    |                         |   |   |   |
|                   Provision for loan losses                                                         |   |                         | 974     |                         |   | 1,064 |   |
| Depreciation                and amortization                                                                  |   |                         | 1,056   |                         |   | 1,036 |   |
| Security                amortization and accretion, net                                             |   |                         | (3      | )                            |   | (6 | ) |
|    Loss                on sale                of securities                                    |   |                         | 23      |                         |   | 8 |   |
| FHLB                stock dividends                                                                           |   |                         | -       |                         |   | (81 | ) |
| Net                gain on sale of mortgage loans                                                             |   |                         | (271    | )                            |   | (183 | ) |
| Originations                of mortgage loans held for sale                                                   |   |                         | (17,196 | )                            |   | (11,241 | ) |
| Proceeds                from sales of mortgage loans                                                          |   |                         | 16,833  |                         |   | 12,152 |   |
|    Increase                in                cash surrender value of life insurance            |   |                         | (190    | )                            |   | (209 | ) |
| Net                (gain) losses from sales of fixed assets                                                   |   |                         | (1      | )                            |   | 4 |   |
|    Stock                compensation expense                                                   |   |                         | 112     |                         |   | 93 |   |
| Net                gain on other real estate and repossessed assets                                           |   |                         | (111    | )                            |   | (184 | ) |
|    Deferred                tax                benefit                                          |   |                         | (251    | )                            |   | (390 | ) |
| Net                changes:                                                                                   |   |                         |    |                         |   |   |   |
| Other                assets                                                                                   |   |                         | 1,535   |                         |   | (162 | ) |
| Accrued                interest payable and other liabilities                                                 |   |                         | (1,387  | )                            |   | 1,722 |   |
| Net                cash provided from operating activities                                               |   |                         | 6,739   |                         |   | 8,719 |   |
|                                                                                                          |   |                         |    |                         |   |   |   |
| **Cash                flows from investing activities**                                                       |   |                         |    |                         |   |   |   |
| Purchase                of securities available for sale                                                      |   |                         | (16,695 | )                            |   | (1,000 | ) |
| Proceeds                from sale of securities available for sale                                            |   |                         | 1,262   |                         |   | 985 |   |
| Proceeds                from maturities of securities held for sale                                           |   |                         | 7,631   |                         |   | 4,559 |   |
| Proceeds                from sale of securities held to maturity                                              |   |                         | 496     |                         |   | - |   |
| Proceeds                from maturities of securities held to maturity                                        |   |                         | 405     |                         |   | 330 |   |
| Purchase                of life insurance                                                                     |   |                         | -       |                         |   | (41 | ) |
| Net                change in loans                                                                            |   |                         | (64,807 | )                            |   | (27,185 | ) |
| Proceeds                from sale of other real estate                                                        |   |                         | 776     |                         |   | 1,188 |   |
| Improvements                to other real estate                                                              |   |                         | -       |                         |   | (1 | ) |
| Proceeds                from sale of fixed assets                                                             |   |                         | 1       |                         |   | - |   |
| Premises                and equipment expenditures                                                            |   |                         | (2,250  | )                            |   | (2,895 | ) |
| Net                cash used in investing activities                                                          |   |                         | (73,181 | )                            |   | (24,060 | ) |
|                                                                                                          |   |                         |    |                         |   |   |   |
| **Cash                flows from financing activities**                                                       |   |                         |    |                         |   |   |   |
| Net                change in deposits                                                                         |   |                         | 57,937  |                         |   | (10,140 | ) |
| Net                change in federal funds purchased and repurchase                agreements                 |   |                         | (593    | )                            |   | 468 |   |
| Proceeds                from FHLB advances and notes payable                                                  |   |                         | 30,000  |                         |   | 143,200 |   |
| Repayments                of FHLB advances and notes payable                                                  |   |                         | (35,692 | )                            |   | (151,294 | ) |
| Dividends                paid                                                                                 |   |                         | (1,275  | )                            |   | (1,174 | ) |
| Proceeds                from issuance of common stock                                                         |   |                         | 223     |                         |   | 288 |   |
| Net                cash from financing activities                                                             |   |                         | 50,600  |                         |   | (18,652 | ) |
|                                                                                                          |   |                         |    |                         |   |   |   |
| **Net                change in cash and cash equivalents**                                                    |   |                         | (15,842 | )                            |   | (33,993 | ) |
|                                                                                                          |   |                         |    |                         |   |   |   |
| Cash                and cash equivalents, beginning of year                                                   |   |                         | 70,640  |                         |   | 74,523 |   |
|                                                                                                          |   |                         |    |                         |   |   |   |
| **Cash                and cash equivalents, end of period**                                                   |   | $                            | 54,798  |                         | $      | 40,530 |   |
|                                                                                                          |   |                         |    |                         |   |   |   |
| **Supplemental                disclosures - cash and noncash**                                                |   |                         |    |                         |   |   |   |
| Interest                paid                                                                                  |   | $                            | 13,635  |                         | $      | 9,777 |   |
| Income                taxes paid                                                                              |   |                         | 560     |                         |   | 514 |   |
| Loans                converted to other real estate                                                           |   |                         | 988     |                         |   | 1,386 |   |
| Unrealized                gain (loss) on available for sale securities, net of tax                            |   |                         | 41      |                         |   | (7 | ) |

----

----

**GREENE      COUNTY BANCSHARES, INC.**

**NOTES      TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**March      31, 2007**

**Unaudited**

**(Amounts      in thousands, except share and per share data)**

----

**NOTE      1 - PRINCIPLES OF CONSOLIDATION**

**NOTE      2 - LOANS**

|                                           |       | **March                31,** | ** ** | **December                31,** | ** ** |
|------------------------------------------------|------------|------------------------------|------------|---------------------------------|------------|
| ** **                                     | ** ** | **2007**                     | ** ** | **2006**                        |       |
|                                           |       |                         |       |                            |       |
| Commercial                                     |       | $                            | 273,198    |                            | $          | 258,998 |   |
| Commercial                real estate          |       |                         | 977,324    |                            |       | 921,190 |   |
| Residential                real estate         |       |                         | 274,496    |                            |       | 281,629 |   |
| Consumer                                       |       |                         | 87,580     |                            |       | 87,111 |   |
| Other                                          |       |                         | 3,021      |                            |       | 2,203 |   |
| Unearned                interest               |       |                         | (12,338    | )                               |       | (11,502 | ) |
| Loans,                net of unearned interest |       | $                            | 1,603,281  |                            | $          | 1,539,629 |   |
|                                           |       |                         |       |                            |       |   |   |
| Allowance                for loan losses       |       | $                            | (22,932    | )                               | $          | (22,302 | ) |
|                                           |       |                         |       |                            |       |   |   |

----

----

**GREENE        COUNTY BANCSHARES, INC.**

**NOTES        TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**March        31, 2007**

**Unaudited**

**(Amounts        in thousands, except share and per share data)**

----

**NOTE      2 - LOANS**
** **

|                                                  |   | **March                31,** |   | **December                31,** |   |
|-------------------------------------------------------|--------|------------------------------|--------|---------------------------------|--------|
| ** **                                            |   | **2007**                     |   | **2006**                        |   |
|                                                  |   |                         |   |                            |   |
| Balance                at beginning of year           |   | $                            | 22,302 |                            | $      | 19,739 |   |
| Add                (deduct):                          |   |                         |   |                            |   |   |   |
|                  Provision for loan losses       |   |                         | 974    |                            |   | 5,507 |   |
|                  Loans charged off               |   |                         | (657   | )                               |   | (4,357 | ) |
|                  Recoveries of loans charged off |   |                         | 313    |                            |   | 1,413 |   |
| Ending                balance                         |   | $                            | 22,932 |                            | $      | 22,302 |   |
|                                                  |   |                         |   |                            |   |   |   |

|                                                   |       | **March                31,** | ** ** | **December                31,** | ** ** |
|--------------------------------------------------------|------------|------------------------------|------------|---------------------------------|------------|
| ** **                                             | ** ** | **2007**                     | ** ** | **2006**                        |       |
|                                                   |       |                         |       |                            |       |
| Loans                past due 90 days still on accrual |       | $                            | 37         |                            | $          | 28 |   |
| Nonaccrual                loans                        |       |                         | 3,286      |                            |       | 3,479 |   |
| Total                                                  |       | $                            | 3,323      |                            | $          | 3,507 |   |
|                                                   |       |                         |       |                            |       |   |   |

----

----

**GREENE      COUNTY BANCSHARES, INC.**

**NOTES      TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**March      31, 2007**

**Unaudited**

**(Amounts      in thousands, except share and per share data) **

----

**NOTE      3 - EARNINGS PER SHARE OF COMMON STOCK**

|                                                               |   |                                              |   |
|--------------------------------------------------------------------|--------|---------------------------------------------------|--------|
|                                                               |   | **Three                  Months Ended March 31,** |
| ** **                                                         |   | **2007**                                          |   | **2006** |
|                                                               |   | **Income**                                        |   | **Shares** |   | **Income** |   | **Shares** |
| ** **                                                         |   | **(Numerator)**                                   |   | **(Denominator)** |   | **(Numerator)** |   | **(Denominator)** |
|                                                               |   |                                              |   |   |   |   |   |   |   |
| **Basic                EPS**                                       |   |                                              |   |   |   |   |   |   |   |
|                  Income available to common shareholders      |   | $                                                 | 5,616  |   |   | 9,815,452 |   | $ | 5,096 |   | 9,770,555 |
|                                                               |   |                                              |   |   |   |   |   |   |   |   |   |
| **Effect                of dilutive securities**                   |   |                                              |   |   |   |   |   |   |   |   |   |
|                  Stock options outstanding                    |   |                                              | -      |   |   | 94,863 |   |   | - |   | 100,136 |
|                                                               |   |                                              |   |   |   |   |   |   |   |   |   |
| **Diluted                EPS**                                     |   |                                              |   |   |   |   |   |   |   |   |   |
|                  Income available to common shareholders plus |   |                                              |   |   |   |   |   |   |   |   |   |
|                    assumed conversions              |   | $                                                 | 5,616  |   |   | 9,910,315 |   | $ | 5,096 |   | 9,870,691 |
|                                                               |   |                                              |   |   |   |   |   |   |   |   |   |

----

----

**GREENE        COUNTY BANCSHARES, INC.**

**NOTES        TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**March        31, 2007**

**Unaudited**

**(Amounts        in thousands, except share and per share data)**

----

**NOTE      4 - SEGMENT INFORMATION**

| **Three                months ended March 31, 2007**    | ** ** | **Bank** | ** ** | **Other                Segments** | ** ** | **Holding                Company** | ** ** | **Eliminations** | ** **                         | **Totals** |   |
|---------------------------------------------------------|------------|----------|------------|-----------------------------------|------------|------------------------------------|------------|------------------|------------------------------------|------------|--------|
|                                                    |       |     |       |                              |       |                               |       |             |                               |       |   |
| Net                interest income (expense)            |       | $        | 17,532     |                              | $          | 1,557                              |       | $                | (268                               | )          | $      | - |   | $ | 18,821 |   |
| Provision                for loan losses                |       |     | 614        |                              |       | 360                                |       |             | -                                  |       |   | - |   |   | 974 |   |
| Noninterest                income                       |       |     | 5,099      |                              |       | 588                                |       |             | 11                                 |       |   | (299 | ) |   | 5,399 |   |
| Noninterest                expense                      |       |     | 12,866     |                              |       | 1,230                              |       |             | 245                                |       |   | (299 | ) |   | 14,042 |   |
| Income                tax expense (benefit)             |       |     | 3,563      |                              |       | 217                                |       |             | (192                               | )          |   | - |   |   | 3,588 |   |
|                  **Segment                profit** |       | $        | 5,588      |                              | $          | 338                                |       | $                | (310                               | )          | $      | - |   | $ | 5,616 |   |
|                                                    |       |     |       |                              |       |                               |       |             |                               |       |   |   |   |   |   |   |
| **Segment                assets at March 31, 2007**     |       | $        | 1,790,899  |                              | $          | 34,610                             |       | $                | 2,125                              |       | $      | - |   | $ | 1,827,634 |   |
|                                                    |       |     |       |                              |       |                               |       |             |                               |       |   |   |   |   |   |   |
| **Three                months ended March 31, 2006**    |       |     | **Bank**   |                              |       | **Other                Segments**  |       |             | **Holding                Company** |       |   | **Eliminations** |   |   | **Totals** |   |
|                                                    |       |     |       |                              |       |                               |       |             |                               |       |   |   |   |   |   |   |
| Net                interest income (expense)            |       | $        | 16,016     |                              | $          | 1,429                              |       | $                | (259                               | )          | $      | - |   | $ | 17,186 |   |
| Provision                for loan losses                |       |     | 842        |                              |       | 222                                |       |             | -                                  |       |   | - |   |   | 1,064 |   |
| Noninterest                income                       |       |     | 4,330      |                              |       | 449                                |       |             | 197                                |       |   | (221 | ) |   | 4,755 |   |
| Noninterest                expense                      |       |     | 11,699     |                              |       | 1,111                              |       |             | 117                                |       |   | (221 | ) |   | 12,706 |   |
| Income                tax expense (benefit)             |       |     | 2,992      |                              |       | 214                                |       |             | (131                               | )          |   | - |   |   | 3,075 |   |
|                  **Segment                profit** |       | $        | 4,813      |                              | $          | 331                                |       | $                | (48                                | )          | $      | - |   | $ | 5,096 |   |
|                                                    |       |     |       |                              |       |                               |       |             |                               |       |   |   |   |   |   |   |
| **Segment                assets at March 31, 2006**     |       | $        | 1,573,020  |                              | $          | 30,525                             |       | $                | 4,695                              |       | $      | - |   | $ | 1,608,240 |   |
|                                                    |       |     |       |                              |       |                               |       |             |                               |       |   |   |   |   |   |   |

----

----

**GREENE      COUNTY BANCSHARES, INC.**

**NOTES      TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**March      31, 2007**

**Unaudited**

**(Amounts      in thousands, except share and per share data)**

----

**NOTE      4 - SEGMENT INFORMATION**

| **Asset                Quality Ratios**                                                                        |   |   |   |   |   |   |   |
|----------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|
|                                                                                                           |   |   |   |   |   |   |   |
| As                of and for the period ended March 31, 2007                                                   |   | Bank   |   | Other  |   | Total  |   |
|                                                                                                           |   |   |   |   |   |   |   |
| Nonperforming                loans as percentage of total loans, net of unearned income                        |   |   | 0.18   | %      |   | 1.43   | %      |   | 0.21 | % |
| Nonperforming                assets as a percentage of total assets                                            |   |   | 0.24   | %      |   | 2.04   | %      |   | 0.28 | % |
| Allowance                for loan losses as a percentage of total loans, net of unearned                income |   |   | 1.26   | %      |   | 8.01   | %      |   | 1.43 | % |
| Allowance                for loan losses as a percentage of nonperforming loans                                |   |   | 713.22 | %      |   | 560.16 | %      |   | 690.10 | % |
| YTD                annualized net charge-offs to average total loans, net of unearned                income    |   |   | 0.02   | %      |   | 2.94   | %      |   | 0.09 | % |
|                                                                                                           |   |   |   |   |   |   |   |   |   |   |
| As                of and for the period ended March 31, 2006                                                   |   |   | Bank   |   |   | Other  |   |   | Total |   |
|                                                                                                           |   |   |   |   |   |   |   |   |   |   |
| Nonperforming                loans as percentage of total loans, net of unearned income                        |   |   | 0.33   | %      |   | 1.11   | %      |   | 0.35 | % |
| Nonperforming                assets as a percentage of total assets                                            |   |   | 0.46   | %      |   | 1.68   | %      |   | 0.49 | % |
| Allowance                for loan losses as a percentage of total loans, net of unearned                income |   |   | 1.26   | %      |   | 7.94   | %      |   | 1.43 | % |
| Allowance                for loan losses as a percentage of nonperforming loans                                |   |   | 381.87 | %      |   | 716.47 | %      |   | 405.23 | % |
| YTD                annualized net charge-offs to average total loans, net of unearned                income    |   |   | 0.15   | %      |   | 2.59   | %      |   | 0.21 | % |
|                                                                                                           |   |   |   |   |   |   |   |   |   |   |
| As                of and for the year ended December 31, 2006                                                  |   |   | Bank   |   |   | Other  |   |   | Total |   |
|                                                                                                           |   |   |   |   |   |   |   |   |   |   |
| Nonperforming                loans as percentage of total loans, net of unearned income                        |   |   | 0.19   | %      |   | 1.84   | %      |   | 0.23 | % |
| Nonperforming                assets as a percentage of total assets                                            |   |   | 0.24   | %      |   | 2.53   | %      |   | 0.29 | % |
| Allowance                for loan losses as a percentage of total loans, net of unearned                income |   |   | 1.28   | %      |   | 7.94   | %      |   | 1.45 | % |
| Allowance                for loan losses as a percentage of nonperforming loans                                |   |   | 680.25 | %      |   | 431.95 | %      |   | 635.93 | % |
| Net                charge-offs to average total loans, net of unearned income                                  |   |   | 0.14   | %      |   | 2.82   | %      |   | 0.20 | % |

| **Net                charge-offs**                                     |   | Bank   |   | Other  |   | Total  |   |
|------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|
|                                                                   |   |   |   |   |   |   |   |
| Actual                for the three month period ending March 31, 2007 |   | $      | 92     |   | $      | 252    |   | $ | 344 |   |
| Actual                for the three month period ending March 31, 2006 |   | $      | 520    |   | $      | 200    |   | $ | 720 |   |
| Actual                for the year ended December 31, 2006             |   | $      | 2,041  |   | $      | 903    |   | $ | 2,944 |   |

**NOTE      5 - REVOLVING CREDIT AGREEMENT**

----

----

**GREENE        COUNTY BANCSHARES, INC.**

**NOTES        TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**March        31, 2007**

**Unaudited**

**(Amounts        in thousands, except share and per share data)**

----

**NOTE        6 - INCOME TAXES**

----

----

| **ITEM                2.  ** | **    MANAGEMENT’S                DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF                OPERATIONS** |
|----------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------|

**Forward-looking      statements, which are based on assumptions and estimates and describe our future      plans, strategies and expectations, are generally identifiable by the use of      forward-looking terminology and words such as “trends,” “assumptions,”      “target,” “guidance,” “outlook,” “opportunity,” “future,” “plans,” “goals,”“objectives,” “expectations,” “near-term,” “long-term,” “projection,” “may,”“will,” “would,” “could,” “expect,” “intend,” “estimate,” “anticipate,”“believe,” “potential,” “regular,” or “continue” (or the negative or other      derivatives of each of these terms) or similar terminology      and expressions. **

**Although      the Company believes that the assumptions underlying any forward-looking      statements are reasonable any      of      the assumptions could be inaccurate, and therefore, actual results may differ      materially from those projected in or implied by the forward-looking statements.      Factors and risks that may result in actual results differing from this      forward-looking information include, but are not limited to, those contained      in      Part I, Item 1A of the 2006 10-K, which is incorporated herein by this      reference, as well as other factors discussed throughout this document,      including, without limitation, in Part II, Item 1A, the factors described under      “Critical Accounting Policies and Estimates” on page 14 of this Quarterly Report      on Form 10-Q or, from time to time, in the Company’s filings with the SEC, press      releases and other communications. **

**Readers      are cautioned not to place undue reliance on forward-looking statements made      in      this document, since the statements speak only as of the document’s      date. All      forward-looking statements included in this Quarterly Report on Form 10-Q are      expressly qualified in their entirety by the cautionary statements in this      section and to the more detailed risk factors included in the Company’s 2006      10-K. The Company has no obligation and does not intend to publicly update      or      revise any forward-looking statements contained in or incorporated by reference      into this Quarterly Report on Form 10-Q, to      reflect events or circumstances occurring after the date of this document or      to      reflect the occurrence of unanticipated events. Readers are advised, however,      to      consult any further disclosures the Company may make on related subjects in      its      documents filed with or furnished to the SEC or in its other public      disclosures.**

----

**Proposed      Acquisition of Civitas**

**Growth      and Business Strategy**

**Overview**

----

**Critical      Accounting Policies and Estimates**

----

**Changes      in Results of Operations**

**Net      Income. **

**Net      Interest Income.**

| FOMC                Meeting       |   | Beginning |     | Ending |
|-----------------------------------|--------|-----------|----------|--------|
| Date                              |   | Rate      | Increase | Rate   |
| December                13, 2005  |   | 4.00%     | 0.25%    | 4.25%  |
| January                31, 2006   |   | 4.25%     | 0.25%    | 4.50%  |
| March                28, 2006     |   | 4.50%     | 0.25%    | 4.75%  |
| May                10, 2006       | 4.75%  | 0.25%     | 5.00%    |
| June                29, 2006      |   | 5.00%     | 0.25%    | 5.25%  |
| August                8, 2006     |   | 5.25%     | 0.00%    | 5.25%  |
| September                20, 2006 |   | 5.25%     | 0.00%    | 5.25%  |
| October                25, 2006   |   | 5.25%     | 0.00%    | 5.25%  |
| December                12, 2006  |   | 5.25%     | 0.00%    | 5.25%  |
| January                31, 2007   |   | 5.25%     | 0.00%    | 5.25%  |
| March                21, 2007     |   | 5.25%     | 0.00%    | 5.25%  |

----

|                                                                                                                                                |       | **Three                Months Ended** | ** ** |
|-----------------------------------------------------------------------------------------------------------------------------------------------------|------------|---------------------------------------|------------|
| ** **                                                                                                                                          | ** ** | **March                31,**          | ** ** |
| ** **                                                                                                                                          | ** ** | **2007**                              | ** ** | **2006** |   |
|                                                                                                                                                |       | Average                               |       |   |   | Average |   | Average |   |   |   | Average |   |
|                                                                                                                                                |       | Balance                               |       | Interest |   | Rate |   | Balance |   | Interest |   | Rate |   |
| **Interest-earning                assets:**                                                                                                         |       |                                  |       |   |   |   |   |   |   |   |   |   |   |
| Loans(1)                                                                                                                                            |       | $                                     | 1,572,640  |   | $ | 31,915 |   |   | 8.23 | % | $ | 1,392,401 |   | $ | 26,100 |   |   | 7.60 | % |
| Investment                securities                                                                                                                |       |                                  | 51,676     |   |   | 708 |   |   | 5.56 | % |   | 56,446 |   |   | 631 |   |   | 4.53 | % |
| Other                short-term investments                                                                                                         |       |                                  | 1,258      |   |   | 15 |   |   | 4.84 | % |   | 3,374 |   |   | 36 |   |   | 4.33 | % |
|   Total                interest-earning assets                                                                                            |       | $                                     | 1,625,574  |   | $ | 32,638 |   |   | 8.14 | % | $ | 1,452,221 |   | $ | 26,767 |   |   | 7.48 | % |
| Noninterest                earning assets                                                                                                           |       |                                  | 153,345    |   |   |   |   |   |   |   |   | 147,140 |   |   |   |   |   |   |   |
|   Total                assets                                                                                                             |       | $                                     | 1,778,919  |   |   |   |   |   |   |   | $ | 1,599,361 |   |   |   |   |   |   |   |
|                                                                                                                                                |       |                                  |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Interest-bearing                liabilities:**                                                                                                    |       |                                  |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Deposits:                                                                                                                                           |       |                                  |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                  Now accounts, money market and                 savings                                                                   |       | $                                     | 540,648    |   | $ | 3,546 |   |   | 2.66 | % | $ | 520,821 |   | $ | 2,576 |   |   | 2.01 | % |
|                  Time deposits                                                                                                                 |       |                                  | 673,242    |   |   | 7,607 |   |   | 4.58 | % |   | 626,047 |   |   | 5,466 |   |   | 3.54 | % |
|   Total                interest-bearing deposits                                                                                          |       | $                                     | 1,213,890  |   | $ | 11,153 |   |   | 3.73 | % | $ | 1,146,868 |   | $ | 8,042 |   |   | 2.84 | % |
| Securities                sold under repurchase                  agreements and short-term borrowings                                          |       |                                  | 25,856     |   |   | 286 |   |   | 4.49 | % |   | 21,678 |   |   | 207 |   |   | 3.87 | % |
| Notes                payable                                                                                                                        |       |                                  | 171,909    |   |   | 2,110 |   |   | 4.98 | % |   | 88,226 |   |   | 1,090 |   |   | 5.01 | % |
| Subordinated                debentures                                                                                                              |       |                                  | 13,403     |   |   | 268 |   |   | 8.11 | % |   | 13,403 |   |   | 242 |   |   | 7.32 | % |
|   Total                interest-bearing liabilities                                                                                       |       | $                                     | 1,425,058  |   | $ | 13,817 |   |   | 3.93 | % | $ | 1,270,175 |   | $ | 9,581 |   |   | 3.06 | % |
| **Noninterest                bearing liabilities:**                                                                                                 |       |                                  |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Demand                deposits                                                                                                                      |       |                                  | 145,185    |   |   |   |   |   |   |   |   | 140,044 |   |   |   |   |   |   |   |
| Other                liabilities                                                                                                                    |       |                                  | 20,398     |   |   |   |   |   |   |   |   | 17,312 |   |   |   |   |   |   |   |
|   Total                noninterest                bearing liabilities                                                                     |       |                                  | 165,583    |   |   |   |   |   |   |   |   | 157,356 |   |   |   |   |   |   |   |
|   Total                liabilities                                                                                                        |       |                                  | 1,590,641  |   |   |   |   |   |   |   |   | 1,427,531 |   |   |   |   |   |   |   |
| Shareholders’                equity                                                                                                           |       |                                  | 188,278    |   |   |   |   |   |   |   |   | 171,830 |   |   |   |   |   |   |   |
|   Total                liabilities                and shareholders’                       equity |       | $                                     | 1,778,919  |   |   |   |   |   |   |   | $ | 1,599,361 |   |   |   |   |   |   |   |
|                                                                                                                                                |       |                                  |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                interest income                                                                                                                  |       |                                  |       |   | $ | 18,821 |   |   |   |   |   |   |   | $ | 17,186 |   |   |   |   |
|                                                                                                                                                |       |                                  |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest                rate spread                                                                                                                 |       |                                  |       |   |   |   |   |   | 4.21 | % |   |   |   |   |   |   |   | 4.42 | % |
|                                                                                                                                                |       |                                  |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                yield on interest-earning assets                                                                                                 |       |                                  |       |   |   |   |   |   | 4.70 | % |   |   |   |   |   |   |   | 4.80 | % |

----

**Provision      for Loan Losses.**

**Noninterest      Income.**

**Noninterest      Expense.**

----

**Income      Taxes.**

**Changes      in Financial Condition Over Financial Reporting**

**Liquidity      and Capital Resources**

**Liquidity.      **

----

**Capital      Resources.**

----

|                                     | RequiredMinimumRatio | Requiredto                beWell                Capitalized |   Bank |   Company |
|------------------------------------------|----------------------|-------------------------------------------------------------|------------------|---------------------|
| Tier                1 risk-based capital | 4.00%                | 6.00%                                                       | 10.10%           | 10.15%              |
| Total                risk-based capital  | 8.00%                | 10.00%                                                      | 11.35%           | 11.40%              |
| Leverage                Ratio            | 4.00%                | 5.00%                                                       | 9.41%            | 9.47%               |

----

**Off-Balance      Sheet Arrangements**

|                                                                                                                     |   | Less                than 1 Year |    | 1-3                Years |   | 3-5                Years |   | More                than 5                Years |   |   Total |   |
|--------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------------|---------|--------------------------|--------|--------------------------|--------|-------------------------------------------------|--------|-------------------|--------|
| Commitments                to make loans - fixed.......................................                             |   | $                                    | 47,207  |                     | $      | -                        |   | $                                               | -      |              | $      | - |   | $ | 47,207 |   |
| Commitments                to make loans - variable...................................                              |   |                                 | 34,680  |                     |   | -                        |   |                                            | -      |              |   | - |   |   | 34,680 |   |
| Unused                lines of                credit...........................................................     |   |                                 | 327,673 |                     |   | 91,972                   |   |                                            | 6,077  |              |   | 54,555 |   |   | 480,277 |   |
| Letters                of                credit...................................................................  |   |                                 | 30,845  |                     |   | 5,171                    |   |                                            | 366    |              |   | - |   |   | 36,382 |   |
| Total................................................................................                               |   | $                                    | 440,405 |                     | $      | 97,143                   |   | $                                               | 6,443  |              | $      | 54,555 |   | $ | 598,546 |   |

**Disclosure      of Contractual Obligations**

|                                                                                                                                                                |   | Less                than 1 Year |    | 1-3                Years |   | 3-5                Years |   | More                than 5Years |   |   Total |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------------|---------|--------------------------|--------|--------------------------|--------|---------------------------------|--------|-------------------|--------|
| Certificates                of                deposits.........................................................                                                |   | $                                    | 562,478 |                     | $      | 87,446                   |   | $                               | 3,776  |              | $      | 3,564 |   | $ | 657,264 |   |
| Federal                funds purchased and repurchase                 agreements........................................................................  |   |                                 | 41,572  |                     |   | -                        |   |                            | -      |              |   | - |   |   | 41,572 |   |
| FHLB                advances and notes                payable........................................                                                          |   |                                 | 49,718  |                     |   | 55,300                   |   |                            | 15,872 |              |   | 50,987 |   |   | 171,877 |   |
| Subordinated                debentures.......................................................                                                                       |   |                                 | -       |                     |   | -                        |   |                            | -      |              |   | 13,403 |   |   | 13,403 |   |
| Operating                lease                obligations....................................................                                                       |   |                                 | 560     |                     |   | 597                      |   |                            | 337    |              |   | 560 |   |   | 2,054 |   |
| Deferred                compensation.........................................................                                                                       |   |                                 | 456     |                     |   | 1,474                    |   |                            | -      |              |   | 1,341 |   |   | 3,271 |   |
| Purchase                obligations..............................................................                                                                   |   |                                 | 113     |                     |   | -                        |   |                            | -      |              |   | - |   |   | 113 |   |
| Total.................................................................................                                                                              |   | $                                    | 654,897 |                     | $      | 144,817                  |   | $                               | 19,985 |              | $      | 69,855 |   | $ | 889,554 |   |

**Effect      of New Accounting Standards**

----

*.*

**ITEM      3.     QUANTITATIVE      AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK **

**ITEM      4.     CONTROLS      AND PROCEDURES**

**Disclosure      Controls and Procedures**

**Internal      Controls**

----

**PART      II - OTHER INFORMATION**

**Item      1A.   Risk      Factors**

**Item      6.     ****Exhibits**

----

**SIGNATURES**

|                                 | Greene County Bancshares, Inc.                                                                                                 |
|--------------------------------------|--------------------------------------------------------------------------------------------------------------------------------|
|                                 | Registrant                                                                                                                     |   |
|                                 |                                                                                                                           |   |
|                                 |                                                                                                                           |   |
|                                 | By /s/               James              E. Adams              |
| Date: May              9, 2007  |                                                                                                                           | James E. Adams |
|                                 |                                                                                                                           | Senior Vice President, Chief Financial |
|                                 |                                                                                                                           | Officer and Assistant Secretary |

----

**EXHIBIT      INDEX**

**  **

| Exhibit No.  | Description |
|-------------------|-------------|
|   |   |
|--------|--------|
| 2.1 | Merger                Agreement, dated as of January 25, 2007, by and between Greene County                Bancshares, Inc. and Civitas Bankgroup, Inc. (Pursuant to                Item 601(b)(2) of Regulation S-K the schedules and exhibits to                this agreement have been omitted from this filing) — incorporated                herein by reference to the Company’s Current Report on Form 8-K filed                January 26, 2007 |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |
|--------|--------|
| 31.1 | Chief Executive Officer Certification Pursuant to Rule              13a-14(a)/15d-14(a) |
|------|-----------------------------------------------------------------------------------------|
|   |   |
|--------|--------|
| 31.2  | Chief Financial Officer Certification Pursuant to Rule              13a-14(a)/15d-14(a) |
|------------|-----------------------------------------------------------------------------------------|
|   |   |
|--------|--------|
| 32.1  | Chief Executive Officer Certification Pursuant to 18 U.S.C. Section                1350, as Adopted Pursuant                to Section 906 of the Sarbanes-Oxley Act of                2002 |
|------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |
|--------|--------|
| 32.2  | Chief Financial Officer Certification Pursuant to 18 U.S.C. Section                1350, as Adopted Pursuant                to Section 906 of the Sarbanes-Oxley Act of                2002 |
|------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|