United Tennessee Bankshares, Inc. (OTC Bulletin Board: UNTN) the holding company for Newport Federal Bank Board of Directors declared an annual cash dividend of $0.48 per share on United Tennessee Bankshares Stock. This is a 2.1% increase in dividend from the previous year and the eighth consecutive year in which the dividend has been increased. The dividend is payable April 30, 2010, to shareholders of record as of April 1, 2010.

As previously reported, United Tennessee Bankshares reported net income for the year ended December 31, 2009 has increased 3.3% from last year's income to $1,082,000. The Board of Directors is pleased to provide our shareholders an increased dividend during a time when many banks are reducing or eliminating dividends. United Tennessee Bankshares continues to provide lending to our local community and has also increased its net income during these distressed economic times for financial institutions.