Katahdin Bankshares Corp. (OTCQB:KTHN), parent company of Katahdin Trust Company, announced that it has declared a cash dividend of $.09 per share for the second quarter of 2012. The dividend will be payable on June 25, 2012 to all shareholders of record as of June 11, 2012.

Katahdin Bankshares Corp. stock is quoted on the OTC Markets quote board OTCQB under the symbol KTHN. Current stock information can be found at otcmarkets.com/home.

Katahdin Trust Company, established in 1918, provides banking services to individuals and businesses from 17 offices in northern and central Maine and online at katahdintrust.com.

For five consecutive years Katahdin Trust Company has been named a Top 200 Community Bank in the country by U.S. Banker magazine, based on its three-year average return on equity.

The Katahdin Bankshares Corp. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=7340

CONTACT: Vicki Smith, Sr. VP Marketing & Communications
         Katahdin Trust Company
         (207) 521-0455, Ext. 135
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