Oak Ridge Financial Services, Inc. (NASDAQ CM: BKOR), the holding company for Bank of Oak Ridge, today reported quarterly net income increased 25% to $375,000 for the third quarter of 2008, compared with quarterly net income of $299,000 for the same period in 2007. Basic and diluted earnings per share also increased 24% to 21 cents per share for the third quarter of 2008, compared with basic and diluted earnings per share of 17 cents for the same period in 2007.

Bank of Oak Ridge President, Ron Black, in commenting on the results, noted, “We are pleased with our results in the third quarter of 2008, especially given the volatile economic conditions that have persisted for all of 2008. Our efforts this year have been primarily focused on maintaining our record of sound asset quality and attracting low-cost business and checking account deposits, and our hard work and sound financial condition continues to reward us with new business and consumer relationships. I am appreciative of all the great efforts of my teammates and the support of our clients and our Board of Directors in helping us to achieve these results.”

Ron Black further noted, “We are proud of our strong emphasis on safety and soundness in conducting the operations of the Bank, which we believe is supported by the following factors:”

• The Bank has never engaged in sub prime lending;
• The Bank currently has a Bauer Financial four-star (excellent) rating;
• At September 30, 2008, the Company’s, nonperforming assets to total assets ratio was 0.28%, which is very low by industry standards; and
• The Bank was well capitalized at September 30, 2008.

As it relates to recent developments in the banking industry, the Bank would like its investors and clients to take note of the Bank’s capabilities:

• The Bank’s experienced employees are able to work with existing and new clients to make sure they maximize their FDIC insurance coverage;
• Through the Bank’s participation in the CDARS program, the Bank can offer full FDIC insurance to clients and businesses up to $50 million;
• The Bank currently offers unlimited FDIC insurance on noninterest-bearing accounts to consumers and businesses, and plans to participate in the FDIC program to offer this insurance through the end of December 2009; and
• The Bank is going to apply for the Treasury’s Capital Purchase Program and expects its application to be approved.

About Oak Ridge Financial Services, Inc.

Oak Ridge Financial Services, Inc., is the holding company for the Bank of Oak Ridge, a community bank headquartered in Oak Ridge, NC, with five locations in Oak Ridge, Summerfield and Greensboro. The Bank offers a complete line of banking and investment services, including savings and checking accounts, mortgage and business loans, extended weekday and Saturday branch banking hours, same-day deposits, cash management services, business and personal Internet banking with balance alerts and reminders, Internet bill payment, and accounts designed specifically for seniors, small businesses and civic organizations. For more information, contact Bank of Oak Ridge at 336-644-9944, or visit www.bankofoakridge.com.

Forward-looking Information

This form contains certain forward-looking statements with respect to the financial condition, results of operations and business of the Bank. These forward-looking statements involve risks and uncertainties and are based on the beliefs and assumptions of management of the Bank and on the information available to management at the time that these disclosures were prepared. These statements can be identified by the use of words like “expect,”“anticipate,” “estimate,” and “believe,” variations of these words and other similar expressions. Readers should not place undue reliance on forward-looking statements as a number of important factors could cause actual results to differ materially from those in the forward-looking statements. Factors that could cause actual results to differ materially include, but are not limited to, (1) competition in the Bank’s markets, (2) changes in the interest rate environment, (3) general national, regional or local economic conditions may be less favorable than expected, resulting in, among other things, a deterioration in credit quality and the possible impairment of collectibility of loans, (4) legislative or regulatory changes, including changes in accounting standards, (5) significant changes in the federal and state legal and regulatory environment and tax laws, (6) the impact of changes in monetary and fiscal policies, laws, rules and regulations and (7) other risks and factors identified in the Bank’s other filings with the Federal Deposit Insurance Corporation. The Bank undertakes no obligation to update any forward-looking statements.

(1) Computed based on the weighted average number of shares outstanding during each period.

(2) Ratios for the three- and nine-month periods ended September 30, 2008 and 2007 are presented on an annualized basis.

(3) Net interest margin is net interest income divided by average interest earning assets.

(4) Net interest spread is the difference between the average yield on interest earning assets and the average cost of interest bearing liabilities.

(5) Efficiency ratio is noninterest expense divided by the sum of net interest income and noninterest income.

(6) Nonperforming assets consist of non-accruing loans, restructured loans and foreclosed assets, where applicable.