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 third quarter of 2011. The dividend will be payable on September 26, 2011 to all shareholders of record as of September 12, 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 16 offices in northern and central Maine, online at www.katahdintrust.com, and operates commercial loan offices in Bangor and Scarborough. 

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

Katahdin Bankshares Corp. was recently recognized by US Banker Magazine as one of the Top 200 Community Banks in the country, for the fifth consecutive year.         

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