KTHN Katahdin Bankshares Corporation (QX)

Katahdin Bankshares Corp. (OTCQB: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 June 27, 2011 to all shareholders of record as of June 13, 2011.

Katahdin Bankshares Corp. stock is quoted on the OTC Markets quote board OTCQB under the symbol KTHN. Current stock information can be found at otcmarkets.com/home.

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 on June 20, 2011.  

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

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