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|   | (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;                                              |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|   | (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                                                                                                                                 |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|   | (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 |

|   | (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 |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                                                                                                |
|   | (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.                                                                                                     |

| Date: August 8,      2008 | CAPITAL BANK      CORPORATION                      |   |
|---------------------------|----------------------------------------------------|--------|
|                      |                                               |   |
|                      |                                               |   |
|                      | By:  /s/       B. Grant      Yarber |   |
|                      | B. Grant    Yarber                                 |   |
|                      | President and Chief Executive      Officer         |   |

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