Shareholder seeks changes to Cape Fear Bank's board of directors

By Lisa Kerner

Charlotte, N.C., March 14 - Cape Fear Bank Corp. shareholder Maurice J. Koury plans to propose an alternate slate of directors for election at the company's 2008 annual meeting.

Koury notified the company in a March 12 letter to Cape Fear chief executive officer Cameron Coburn. The letter was included as part of a schedule 13D filing with the Securities and Exchange Commission.

In the letter, Koury said Cape Fear's board of directors refused to meet with the investor, refused to disclose details of the company's strategic business plan to create shareholder value, rejected Koury's offer to acquire Cape Fear for $12 per share and rejected the shareholder's offer to nominate two bankers as company directors.

"Because the company refuses to engage in any meaningful dialogue with me, I am now left with no choice but to seek new leadership to build value for the company's shareholders," Koury said in his letter.

"Based on the performance of the company since inception, it is clear that certain changes must be made," Koury added, citing Cape Fear's stock performance as well as the "generous compensation packages" given to the company executives.

The investor, with an 8.47% stake in Cape Fear, also demanded to inspect and copy certain company books and records in accordance with Rule 14a-7 of the Securities Exchange Act of 1934, as amended.

Koury requested the information be delivered in an electronic format within five business days.

Cape Fear is the holding company for Cape Fear Bank, based in Wilmington, N.C.

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