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**I,        B. Grant Yarber, certify that:**

| (a) | Designed                  such disclosure controls and procedures, or caused such disclosure                  controls and procedures to be designed under our supervision, to                  ensure                  that material information relating to the registrant, including                  its                  consolidated subsidiaries, is made known to us by others within                  those                  entities, particularly during the period in which this report is                  being                  prepared; |
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| (b) | Designed                  such internal control over financial reporting, or caused such                  internal                  control over financial reporting to be designed under our supervision,                  to                  provide reasonable assurance regarding the reliability of financial                  reporting and the preparation of financial statements for external                  purposes in accordance with generally accepted accounting                  principles; |
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| (c) | Evaluated                  the effectiveness of the registrant’s disclosure controls and procedures                  and presented in this report our conclusions about the effectiveness                  of                  the disclosure controls and procedures, as of the end of the period                  covered by this report based on such evaluation;                  and |
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| (d) | Disclosed                  in this report any change in the registrant’s internal control over                  financial reporting that occurred during the registrant’s most recent                  fiscal quarter (the registrant’s fourth fiscal quarter in the case of an                  annual report) that has materially affected, or is reasonably likely                  to                  materially affect, the registrant’s internal control over financial                  reporting; and |
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| (a) | All                  significant deficiencies and material weaknesses in the design                  or                  operation of internal control over financial reporting which are                  reasonably likely to adversely affect the registrant’s ability to record,                  process, summarize and report financial information;                  and |
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| (b) | Any                  fraud, whether or not material, that involves management or other                  employees who have a significant role in the registrant’s internal control                  over financial reporting.  |
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|  Date:                  November 8, 2007 | **CAPITAL                  BANK CORPORATION**                      |
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|                                     |                                                               |
|                                          |                                                                    |
|                                          | By:  /s/                   *B. Grant Yarber*             |
|                                          | B.                  Grant                  Yarber                       |
|                                          | President                  and Chief Executive                  Officer |

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