FOR IMMEDIATE RELEASE

Century South Banks, Inc.
P.O. Box 1000
Dahlonega, Georgia  30533
P.O. Box 14099
Macon, Georgia  31203

                       Contact James A Faulkner   Larry Ammons
                               (706) 864-3915     (826) 456-9092
                               Joe Evans          Susan Anderson
                               (912) 475-4340     (706) 864-1111


                CENTURY SOUTH BANKS, INC. TO ACQUIRE
                      HAYWOOD BANCSHARES, INC.


    DAHLONEGA, GA/WAYNESVILLE, N.C.   Century South Banks, Inc.
(Nasdaq NMS:CSBI) and Haywood Bancshares, Inc. (AMEX:HBS) today
announced that they have entered into an Agreement and Plan of
Merger whereby Haywood would be merged with a wholly-owned
subsidiary of Century South and Haywood's shareholders would
receive approximately $21.30 for each share of Haywood's common
stock based on the current value of Century South stock.

     Subject to certain limitations, Haywood shareholders will
have the right to elect to receive the merger consideration in
cash or in shares of Century South common stock with cash paid
in lieu of fractional shares.

     In connection with the agreement, Haywood has granted
Century South an option to acquire up to 249,946 shares of
Haywood's common stock (equal to approximately 19.9% of
Haywood's shares outstanding).  The option will only be
exercisable following in the event of a termination or in
certain other limited events.

     The merger is subject to customary terms and conditions
including shareholder and regulatory approvals and is expected
to close in the first quarter of 2000.  The merger will be
accounted for as a purchase.

     "Century South is pleased to bring Haywood into our family
of community banks," stated James A. Faulkner, Vice-Chairman and
Chief Executive Officer of Century South.  "Under the leadership
of President and Chief Executive Officer Larry Ammons, Haywood
has established a rich heritage of outstanding customer service.
We look forward to continuing that tradition and providing
several new services to Haywood's customer.  Western North
Carolina is a natural complement to our current market and we
are very excited at the prospect of building a significant
market presence for Century South in this area.

     "We are extremely excited about the prospect of joining
with Century South."  Larry Ammons, the President and Chief
Executive Officer of Haywood stated.  "The Board of Directors
believes that Century South's community bank philosophy mirrors
our approach to banking and will result in greater convenience
and service to our customers.  At the present time, Haywood will
continue to operate under its current name and in its current
locations."

     Haywood is a one-banking company with $150 million in
assets as of June 30, 1999 and with branches located in
Waynesville, Murphy, Andrews and Sylva, North Carolina.  Century
South is a $1.2 billion multi-bank, multi-state holding company
with eleven affiliate banks; Bank of Dahlonega, GA; The Bank of
Ellijay, Ellijay, GA; First Bank of Polk County, Copperhill, TN;
Georgia First Bank, N.A., Gainesville, GA; Fannin County Bank,
N.A., Blue Ridge, GA; First Community Bank of Dawsonville,
Dawsonville, GA; Peoples Bank, Lavonia, GA; Bank of
Danielsville, Danielsville, GA; AmeriBank, N.A., Savannah, GA;
and First South Bank, N.A., Macon, GA; and The Independent Bank
of Oxford, Oxford, AL.