Oak Ridge Financial Services, Inc. (Nasdaq:BKOR), parent company of Oak Ridge Financial Services, Inc., headquartered in Oak Ridge, North Carolina, announced unaudited net income for the three months ended June 30, 2009, before adjusting for the effective dividend on preferred stock, of $242,000 compared to net income of $384,000 for the prior year period. After adjusting for $164,000 in dividends and accretion on preferred stock, net income available for common shareholders for the current period was $78,000 or $0.04 per diluted share compared with $0.21 per diluted share for the quarter ended June 30, 2008. Earnings in the current period were negatively impacted by higher loan loss provisions and other real estate owned write downs in response to current economic conditions, an increase in noninterest operating expenses, and a slight decrease in noninterest income, but were positively impacted by an increased net interest margin caused primarily by the Company’s liability rates decreasing faster than yields on earning assets.

Oak Ridge Financial Services President, Ron Black, in commenting on the results, noted, “Given the difficult economic environment, we are pleased with our profitability in the second quarter of 2009. During the first six months of 2009 our primary focus was servicing our loan portfolio, and we were very pleased with the results in this area, as evidenced by a decline in other real estate owned at June 30, 2009 from December 31, 2008, and stabilization in the level of nonperforming loans from December 31, 2008 to June 30, 2009. As a true community bank our primary purpose continues to be helping our clients succeed in this difficult economic environment.”

Mr. Black further commented “Our primary areas of focus for the rest of 2009 will be continuing to service our loan and other real estate owned portfolios and growing net interest income and noninterest income by providing extraordinary service to existing and prospective clients. We plan to continue to support our local economy by taking deposits, making loans, and providing financial advice for our clients in these difficult times. The community was incredibly supportive of our Bank in the first six months of 2009 and we had increases in loans and deposits. Lastly, at June 30, 2009 we were well-capitalized with ample capital for future growth. ”

About Bank of Oak Ridge

Bank of Oak Ridge, headquartered in Oak Ridge, NC, is a community Bank with five banking offices in Oak Ridge, Summerfield and Greensboro. The Bank’s independent financial advisory division, Oak Ridge Wealth Management, operates out of an office in downtown 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, mobile banking 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 Company. These forward-looking statements involve risks and uncertainties and are based on the beliefs and assumptions of management of the Company 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 Company’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 Company’s other filings with the Federal Deposit Insurance Corporation. The Company undertakes no obligation to update any forward-looking statements.