FOR IMMEDIATE RELEASE

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PATRICK WILD IS APPOINTED PEOPLES BANK

SENIOR VICE PRESIDENT/CHIEF RISK OFFICER

BILOXI, MS (October 3, 2008)—Patrick Wild has been appointed senior vice president and Chief Risk Officer at The Peoples Bank, announced Chevis C. Swetman, chairman and chief executive officer of the bank.

Wild, a resident of Pass Christian, has worked in banking for 24 years, starting with Gulf National Bank in 1984. He joined The Peoples Bank in 1988.

“On behalf of our Board of Directors, we’re proud to add a committed, dedicated executive to our Senior Management team,” said Swetman. “Patrick has demonstrated the kind of leadership skills in his former position as vice president of credit administration that will help our bank grow and prosper in the years ahead,” Swetman added.

Wild earned his bachelor’s degree in banking and finance from the University of Southern Mississippi. He is also a graduate of the Mississippi School of Banking, Southeastern School of Commercial Lending and is currently enrolled in the LSU Graduate School of Banking.

He grew up in Diamondhead and graduated from St. Stanislaus High School. He has served as president of the Diamondhead Rotary Club, treasurer of the Pass Christian Chamber of Commerce and the Pass Christian Isles Golf Club. He has also served on the boards of the Hancock County Chamber of Commerce, the Diamondhead Business and Professionals Association and the local chapter of the American Cancer Society.

Founded in 1896, with $897 million in assets as of June 30, 2008, The Peoples Bank operates 16 branches along the Mississippi Gulf Coast in Hancock, Harrison, Jackson and Stone counties. In addition to a comprehensive range of retail and commercial banking services, the bank also operates a trust and investment services department that has provided customers with financial, estate and retirement planning services since 1936. The bank also formed a mortgage loan department in July, 2007, to provide residential loans for primary, secondary and multi-family homes up to four units.

The Peoples Bank is a wholly-owned subsidiary of Peoples Financial Corporation, listed on the NASDAQ Capital Market under the symbol PFBX. Additional information is available on the Internet at http://www.thepeoples.com/.

This news release contains forward-looking statements and reflects industry conditions, company performance and financial results. These forward-looking statements are subject to a number of risk factors and uncertainties which could cause the Company’s actual results and experience to differ from the anticipated results and expectation expressed in such forward-looking statements.