Appalachian Bancshares Chooses Marsh Communications For Public Relations and Marketing

ELLIJAY, Ga., July 18, 2005 - Appalachian Bancshares Inc. (OTC: APAB.PK), the holding company of Appalachian Community Bank (which also operates under the trade name Gilmer County Bank) has hired Marsh Communications LLC to develop and execute a public and investor relations program for the company.

With branches in Ellijay, East Ellijay , Blue Ridge and Blairsville , Ga. , Appalachian Bancshares chose Marsh Communications because of the extensive financial services and investor relations expertise of MarshComm's principals.

"Appalachian Bancshares has reached a new stage of higher, sustained growth, and as a result, we need to strategically raise our profile with customers, investors and the communities we serve," said Appalachian Bancshares' Chief Executive Officer Tracy R. Newton. "Marsh Communications has experience working with other community banks in our position, and we look forward to achieving similar success."

Marsh Communications will provide Appalachian Bancshares with public relations, investor relations and marketing support, including writing earnings releases, quarterly reports to shareholders, annual reports and other editorial services, analyst and investor outreach, media relations, executive media training and strategic communications consulting.

A professional communications program, including strategic outreach to investors and analysts, is vital for Appalachian Bancshares to leverage the success of its banking operations," said John Marsh , president of Marsh Communications. "With our specialized knowledge of banking and deep experience in investor relations, we plan to help Appalachian Bancshares communicate how its customer-focused approach to business is fueling its growth as a company and increasing its value as an investment."

About Appalachian Bancshares

Appalachian Bancshares Inc., based in Ellijay , Ga. , is the $495 million-asset bank holding company of Appalachian Community Bank, which also operates under the trade name of Gilmer County Bank. The company provides a full range of community banking services to individuals, small and medium-sized businesses, and farmers through North Georgia banking offices located in Ellijay, East Ellijay , Blue Ridge and Blairsville. The company's stock is traded on the Pink Sheets under the symbol APAB. For more information, please visit the company's Web site, www.acbanks.net.

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