The South Financial Group, Inc. (NASDAQ:TSFG) announced that its Board of Directors has declared a fourth quarter 2008 cash dividend in the amount of $0.01 per common share. This dividend will be paid on November 1, 2008 to common shareholders of record as of October 15, 2008.

In addition, TSFG’s Board of Directors declared a quarterly cash dividend of $25.00 per share on its Mandatory Convertible Non-cumulative Preferred Stock (Series 2008ND-V, Series 2008ND-NV, Series 2008D-V, and Series 2008D-NV). This amount is based on a rate per annum of 10%. The preferred dividend is payable on November 1, 2008 to preferred stock shareholders of record as of October 15, 2008.

General Information

The South Financial Group is the largest publicly-traded bank holding company headquartered in South Carolina and ranks among the top 50 U.S. commercial bank holding companies in total assets. At June 30, 3008, it had approximately $14.0 billion in total assets and 180 branch offices in Florida, North Carolina, and South Carolina. TSFG operates Carolina First Bank, which conducts banking operations in North Carolina and South Carolina (as Carolina First Bank), in Florida (as Mercantile Bank), and on the Internet (as Bank CaroLine). At June 30, 2008, approximately 45% of TSFG’s total customer deposits were in South Carolina, 40% were in Florida, and 15% were in North Carolina. Investor information is available at www.thesouthgroup.com.

The South Financial Group
James R. Gordon, Senior EVP &
Chief Financial Officer, 864-552-9050
Mary M. Gentry, EVP – Investor Relations, 864-421-1068