By SCBIZ Staff

TROY, N.C. and CHERAW, S.C. – First Bancorp and Great Pee Dee Bancorp Inc. jointly announce the signing of a definitive merger agreement providing for the merger of Great Pee Dee into First Bancorp. The terms of the agreement call for shareholders of Great Pee Dee to receive 1.15 shares of First Bancorp stock for each share of Great Pee Dee stock they own.

Based on Thursday's closing price of First Bancorp's common stock of $18.28, the transaction represents a price of $21.02 per share of Great Pee Dee's common stock and a total transaction value of approximately $38.2 million.

First Bancorp is the holding company for First Bank, a community bank headquartered in Troy, N.C., with about $2.1 billion in total assets. First Bank has 69 branches, with 62 branches operating in a 21-county market area in the central piedmont and coastal regions of North Carolina, three branches in Dillon County and four branches in Virginia, where First Bank does business as First Bank of Virginia.

Great Pee Dee is the holding company for Sentry Bank and Trust, a three-branch community bank headquartered in Cheraw, with two branches in Cheraw and one branch in Florence. At March 31, 2007, Great Pee Dee had total assets of $219 million, total loans of $188 million, total deposits of $153 million, and total shareholders' equity of $27.3 million.

Jerry L. Ocheltree, President and CEO of First Bancorp, states, "We are delighted to be joining with such a fine company that is so well respected in its market area. Cheraw and Florence represent natural extensions of First Bank's branch network and will help to solidify our presence in the I-95 corridor of South Carolina. We look forward to serving the customers of Sentry Bank and Trust and providing them with additional products and services."

John S. Long, the current president of Great Pee Dee, will remain with First Bancorp as an executive vice president, leading First Bank's growth in the Cheraw and Florence markets and surrounding areas.

The transaction is expected to be consummated late in the fourth quarter of this year or early in the first quarter of 2008. The transaction is intended to qualify as a tax-free reorganization, and is subject to regulatory approval and approval by Great Pee Dee's shareholders.