Staff Report

Gateway financial Holdings, Inc. (NASDAQ:GBTS), the holding company for Gateway Bank & Trust Co., has appointed Deborah Underwood as vice president and lender.

Underwood is responsible for commercial and retail account lending, primarily working out of Gateway Bank’s new Suffolk office at 2825 Godwin Blvd.

A Suffolk native, Underwood brings more than 32 years of banking experience to her new post.

Prior to her position with Gateway Bank, she was vice president and financial specialist with Wachovia Bank in Suffolk, where she had spent more than three decades in a range of positions, including vice president and manager, and assistant vice president and manager.

Underwood is &uot;very excited&uot; about coming to Gateway Bank, she said, and being part of the type of banking philosophy the Gateway brings to her city and surrounding area.

&uot;This is a bank that is committed to face-to-face banking with quick, flexible local decision making that is also backed up by state-of-the-art technology,&uot; Underwood said.

&uot;It is the best of both banking worlds and very refreshing. I’m very glad they have come to Suffolk.&uot;

D. Ben Berry is the chairman, president and chief executive officer for Gateway Bank.

&uot;Ms. Underwood brings just the type of experience and attitude we want on our Gateway Team,&uot;

said Berry.

&uot;That she is a Suffolk native and very familiar with the banking landscape here is just another of her many attributes.&uot;

Gateway Financial Holdings, Inc., (NASDAQ: GBTS) with $412 million in assets as of Sept. 30, 2004 is a fast-growing financial services company headquartered in Elizabeth City, N.C.

It is the parent company of Gateway Bank & Trust Co., a full-service community bank with a total of 15 offices in various locations in North Carolina and Virginia.