TAMPA - Florida Bank Group, Inc. (FBG), a Tampa-based bank holding company, today announced it has executed a definitive agreement to acquire The Bank of Tallahassee of Tallahassee, Florida. The consideration in the transaction is a combination of both FBG stock and cash. The merger, approved by the Boards of both companies, is subject to regulatory and shareholder approval. It is expected to close within 30 days of receipt of all necessary approvals.

The Bank of Tallahassee currently operates three full-service banking offices and has total assets of approximately $81 million. "We are excited about our investment in The Bank of Tallahassee and gaining entry into this growing market," said Robert Rothman, Chairman and Chief Executive Officer of FBG. "The Bank of Tallahassee has developed an excellent customer base and a solid commercial portfolio in the Leon County area."

As a subsidiary of FBG, The Bank of Tallahassee will maintain its name and charter and continue to operate with its own local Board of Directors and management team. Rothman added, "With local decision making and governance, The Bank of Tallahassee will continue to operate as a true community bank. This merger complements FBG's model of a Florida-based bank holding company with multiple community bank subsidiaries operating independently in Florida's most attractive growth markets. In addition to organic growth, FBG intends to continue to grow and expand into other Florida markets via mergers and de novo subsidiary formation."

"I am excited about the proposed transaction and the opportunities that Florida Bank Group can bring to our bank through this merger," commented Nick Nixon, President and Chief Executive Officer of The Bank of Tallahassee "We expect a seamless transition and our clients will experience only enhanced services as a result of this change." Mr. Nixon will continue to serve as President and Chief Executive Officer of The Bank of Tallahassee following the merger.

"Under the leadership of Nick Nixon, The Bank of Tallahassee will continue providing the excellent experience clients have come to expect," said Joseph Caballero, FBG President. "They have done an exemplary job in servicing their clients, tending to the needs of the local business leaders and developing a solid reputation for commitment to the local community."

FBG is expected to provide capital to fund the future growth of The Bank of Tallahassee and to provide a broader array of products and services to customers of The Bank of Tallahassee.

Allen C. Ewing & Co. acted as financial advisor to The Bank of Tallahassee and provided a fairness opinion to its Board of Directors. Ben Bishop and Bob Chassman served as lead bankers for Allen C. Ewing & Co.

Florida Bank Group, Inc. is a bank holding company headquartered in Tampa, Florida, which currently conducts banking operations through two wholly-owned subsidiaries, Bank of St. Petersburg and Bank of North Florida. Bank of St. Petersburg was founded in 1985 and operates seven branches located in Hillsborough and Pinellas counties. Bank of North Florida is a de novo bank, chartered in December 2006 and headquartered in downtown Jacksonville. FBG had in excess of $500 million in assets and more than $100 million in capital at December 31, 2006.

This press release contains forward-looking statements, including statements about the earnings outlook of Florida Bank Group, Inc., that involve certain risks and uncertainties.

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