Produces Annual Report for Eagle Bancshares, Inc.

ATLANTA—August 10, 2001—charbaxter.communications, an Atlanta-based advertising agency that provides integrated branding and marketing services primarily to high technology companies, recently completed the annual report for Eagle Bancshares, Inc., whose principal subsidiary is Tucker Federal Bank.

“We’re extremely pleased with the work the agency did on our 2001 annual report,” said Betty Petrides, executive vice president and director of Tucker Federal. “They were a perfect match for us—an intelligent creative team who helped us produce a beautiful product on a limited budget in record time. What’s more, we were delighted to award the project to a growing business that has been a good customer of our bank for years.”

“Just Right” was the theme of the eight-page report, which highlighted the bank’s decision to exit markets outside the 20-county metro Atlanta area and focus on its core business—full-service community banking. “We have a dynamic community banking franchise in Atlanta, and want to take advantage of the many opportunities to reap stronger and more consistent earnings from it,” said Petrides. “charbaxter.communications helped us convey that message to our shareholders with impact, clarity and excitement. It was very well-received at our annual shareholders meeting earlier this month.”

Char Baxter, CEO and founder of the agency at 2853 Henderson Mill Road in northeast Atlanta, said the bank is a good fit to the agency’s capabilities. “Over the years, we’ve worked with many software and consulting companies that specialize in the financial services industry,” she said. “So our expertise in high technology has made us experts in financial services, too, as well as many other industries including franchising, health care and higher education. That’s one of the reasons we were able to turn the annual report project so quickly. We look forward to a long-standing partnership with Tucker Federal, providing them with ongoing marketing and public relations support.”

About Eagle Bancshares and Tucker Federal

Tucker Federal Bank is a subsidiary of Eagle Bancshares, Inc., a unitary thrift holding company headquartered in Tucker, Georgia. Tucker Federal Bank has 15 branches with locations throughout metropolitan Atlanta (Tucker, Alpharetta, Decatur, Doraville, Dunwoody, Jonesboro, Lawrenceville, Lilburn, Suwanee, Morrow, Palmetto, Snellville, Stone Mountain, Union City and Atlanta). With assets in excess of $1.2 billion, the bank offers a complete array of financial products to individual consumers and small businesses. Billing itself as “not too big, not too small, just right,” Tucker Federal has created a reputation as the bank for “Free Checking,” offering customers a free checking account with no minimum balance requirement. Tucker Federal Bank also has an online banking site, justrightbank.com, where customers can make financial transactions 24 hours a day, 7 days a week. The Company’s Trust Preferred securities and common stock trade on the NASDAQ-AMEX exchanges under the symbols EBS.pr and EBSI, respectively. For more information, visit www.eaglebancshares.com or tuckfed.com.

About charbaxter.communications

With over $4 million in billings for 2000, charbaxter.communications traces its roots back to 1991. Early clients included SAP America, Deloitte Consulting and Imlay Investments. The agency continued its high technology focus by developing award-winning branding strategies for technology leaders across North America. These included Sequent Computer Systems, Portland, OR; i-Cube, a Cambridge, MA-based company that was acquired by Razorfish; Clarkston-Potomac, Raleigh; and Atlanta-based companies such as SQL Financials (now Clarus), SynQuest, Inc., Optio Software, Manhattan Associates and o2wireless Solutions, whose integrated rebranding launch won a 2000 ADDY award for the agency. Other clients range from startups to established players including Atlanta’s Spectrum Software, Magnet Communications and The Complex Sale. The agency is a sponsor of the Technology Association of Georgia. For more information, visit www.charbaxter.com.