KTHN Katahdin Bankshares Corporation (QX)

Katahdin Bankshares Corp. (OTCBB:KTHN), parent company of Katahdin Trust Company, today announced that it has declared a cash dividend of $.082 per share for the first quarter of 2011. The dividend will be payable on March 28, 2011 to all shareholders of record as of March 14, 2011. 

Katahdin Bankshares Corp. stock is quoted on the Over-the-Counter Bulletin Board (OTCBB) under the symbol KTHN. Current stock information can be found on the OTCBB website at www.otcbb.com. 

Katahdin Trust Company, established in 1918, provides banking services to individuals and businesses from 15 offices in northern and central Maine, online at www.katahdintrust.com, operates commercial loan offices in Bangor and Scarborough, and will be opening a full service branch in Hampden in mid-2011.

The Katahdin Bankshares Corp. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=7340

CONTACT: Vicki Smith, Senior Vice President
         Katahdin Trust Company
         (207) 521-0455, Ext. 135