Weststar Financial Services Corporation (OTC Bulletin Board: WFSC) reported consolidated net income of $1,078,751 for the twelve months ended December 31, 2005 compared to $658,204 for the comparable period in 2004 - an increase of 64%. On a per share basis, earnings for the twelve-month periods of 2005 and 2004 were $.72 vs. $.45 per diluted share - an increase of 60%. The increase in earnings was primarily attributable to growth in net earning assets.

For the three-month period ended December 31, 2005 net income totaled $382,279 compared to $201,816 for the comparable period in 2004 - an increase of 89%. On a per share basis, earnings for the three-month periods of 2005 and 2004 were $.26 vs. $.14 per diluted share - an increase of 86%. The increase in earnings was primarily attributable to growth in net earning assets.

At December 31, 2005, consolidated assets totaled $138.8 million - a 6% increase over December 31, 2004. Asset growth was realized in loans, which increased 18% to $100.5 million, and investments, which increased 20% to $27.8 million. At December 31, 2005, the Company's allowance for loans represented 1.75% of outstanding loans. Deposits reflected 4% growth to $119.1 million at December 31, 2005 compared to the previous year. Shareholders' equity increased 8% over December 31, 2004 to $10.6 million at December 31, 2005.

Return on assets was 1.13% compared to .62%, and return on equity was 14.43% compared to 8.24% for the three-month periods ended December 31, 2005 and 2004, respectively. For the twelve-month periods ended December 31, 2005 and 2004, respectively, return on assets was .81% compared to .55%, and return on equity was 10.67% compared to 6.93%.

G. Gordon Greenwood, President and Chief Executive Officer, elaborated on earnings. "Record earnings were largely attributable to improved asset quality, a strong demand for loans and improved net interest margins, all of which reflect our actions in providing unforgettable service through Bank of Asheville and our partners at Bank of Asheville Mortgage, White Oak Financial and Alta Vista Wealth Management. A special thank you to the many customers, who choose Bank of Asheville as their financial partners and have made us 8 years strong," stated Greenwood.

Weststar Financial Services Corporation is the parent company of The Bank of Asheville. Weststar Financial Services Corporation owns 100% interest in Weststar Financial Services Corporation I, a statutory trust, and 50% interest in Bank of Asheville Mortgage Company, LLC, a mortgage broker. The bank operates 4 full-service banking offices in Buncombe County, North Carolina - Downtown Asheville, Candler, Leicester and South Asheville. Bank of Asheville Mortgage Company, LLC operates three offices -- Downtown Asheville, South Asheville, and Hendersonville.

This news release contains forward-looking statements. Such statements are subject to certain factors that may cause the company's results to vary from those expected. These factors include changing economic and financial market conditions, competition, ability to execute our business plan, items already mentioned in this press release, and other factors described in our filings with the Securities and Exchange Commission. Readers are cautioned not to place undue reliance on these forward-looking statements, which reflect management's judgment only as of the date hereof. The company undertakes no obligation to publicly revise these forward-looking statements to reflect events and circumstances that arise after the date hereof.

Weststar Financial Services Corporation and Subsidiary

Financial Highlights

12/31/2005 12/31/2004 % Change

Assets $138,753,535 $131,006,707 5.91%

Deposit $119,112,899 $114,441,748 4.08%

Loans (Gross) $100,493,602 $84,852,070 18.43%

Allowance for Loan Losses $(1,760,377) $(1,608,366) 9.45%

Loans (Net) $98,733,225 $83,243,704 18.61%

Investments $27,824,748 $23,106,660 20.42%

Shareholders' Equity $10,596,543 $ 9,810,187 8.02%

Three Months Ended Twelve Months Ended

% %