WGNB Corp. (NASDAQ: WGNB) and its Board of Directors announced a dividend reduction of 50%, to $0.105 cents, and the adoption of a dividend reinvestment plan.

“Given the state of the economy and its impact on our residential real estate construction and acquisition and development borrowers, the Board of Directors of WGNB Corp. believes it is in the best interests of the shareholders to increase the capital position of the Company,” said H. B. “Rocky” Lipham, Chief Executive Officer of WGNB Corp. “It is likely that, despite constant portfolio management and communication with our borrowers, we will have additional loan charge-offs and corresponding loan loss provisions, which will decrease the Company’s net earnings over the near term. We are grateful that we have a strong core earnings base, and we remain committed to maintaining a strong capital base for the Bank.”

The Dividend

The Board of Directors has elected to reduce the second quarter dividend to $0.105 cents per share for shareholders of record as of the close of business on June 20, 2008, and payable on July 1, 2008. This represents a 50% reduction in the quarterly dividend declared and paid in the first quarter of 2008 in the amount of $0.21 cents per share.

“The Board of Directors believes that the reduction in the dividend is the first measure to be taken with respect to capital preservation,” said Lipham. “This decision was made after great thought, market evaluation and capital needs analysis.”

The Dividend Reinvestment Plan

The Board of Directors has approved a dividend reinvestment plan which will be available for the second quarter dividend for those who enroll in the plan. The purpose of the plan is to provide shareholders and interested new investors with a convenient and economical method of investing in the common stock of the Company, without payment of brokerage commissions. The plan provides two ways in which to buy WGNB Corp. common stock: (1) by investing cash dividends in additional shares and (2) by purchasing additional shares directly for cash.

Under the dividend reinvestment component of the plan, existing shareholders may elect to have all, a portion or none of their cash dividends on their existing shares automatically invested in additional shares of WGNB Corp. common stock. Under the direct stock purchase component of the plan, shareholders and new investors may elect to invest cash into shares of WGNB Corp. common stock, subject to a minimum purchase of $250 per month and a maximum of $10,000 per month.

WGNB Corp. has registered 500,000 of its authorized but previously unissued “new” shares of WGNB Corp. common stock for issuance under the plan. The issuance of the new shares is at the discretion of the Board of Directors as they may deem appropriate from time to time based on current capital needs. Common shares may also be purchased on the open market by our plan administrator, Registrar and Transfer Company. Further details of the plan will be available online at Registrar and Transfer Company’s website, www.rtco.com.

Lipham concluded, “Our intent is to continue to take steps to help ensure that we are in good capital position through this period of uncertainty. We maintain our commitment to safe and sound banking practices and to serving our valued customers.”

About WGNB:

WGNB Corp. stock is traded on the NASDAQ Capital market under the symbol WGNB. First National Bank of Georgia has seventeen locations in Carroll, Coweta, Douglas and Haralson counties and 22 ATM locations in the west Georgia area. Total assets for the Bank are $891 million. For more information about First National Bank of Georgia, visit the Bank’s website at www.fnbga.com.

Except for historical information contained in this press release, the matters discussed consist of forward-looking information under the Private Securities Litigation Reform Act of 1995. The accuracy of the forward-looking information is necessarily subject to and involves risk and uncertainties, which could cause actual results to differ materially from forward-looking information. These risk and uncertainties include but are not limited to, general economic conditions, competition and other factors, included in filings with the Securities and Exchange Commission.

When used in this release, the words “believes,” “estimates,” “plans,” “expects,” “should,” “will,” “may,” “might,” “outlook,” and “anticipates” are similar expressions as they relate to WGNB Corp. (including its subsidiaries), or its management are intended to identify forward-looking statements.

The Company, from time to time, becomes aware of rumors concerning the Company or its business. As matter of policy, the Company does not comment on rumors. Investors are cautioned that in this age of instant communication and Internet access, it may be important to avoid relying on rumors and other unsubstantiated information regarding the Company. The Company complies with Federal and State laws applicable to the disclosure of information concerning the Company. Investors may be at significant risk in relying on unsubstantiated information from other sources.

If you have questions about this or other financial information please contact Steven J. Haack, Chief Financial Officer, via e-mail at shaack@wgnb.com or at WGNB Corp., P.O. Box 280, Carrollton, Georgia 30112.

WGNB Corp.
Steve Haack, 770-832-3557
shaack@wgnb.com