CAYMAN NATIONAL CORPORATION – Dividend Declaration and Report of Share Purchases

On November 21 2008, the Board of Directors of Cayman National Corporation met and recommended a semi-annual dividend of eight and one half cents per share ($0.085) to shareholders of record as of December 31, 2008, payable in March subject to approval by shareholders at the annual general meeting of the company in February 2008.

During October and November 2008 CNC purchased 5,333 (average price US$3.80) and 5,209 (average price US$3.78), respectively, of its own shares for distribution in its Senior Staff Employee Scheme.

On Friday, December 19, 2008, CNC will publish un-audited results for the year ended September 30, 2008.

Patricia Estwick, CPA

Chief Financial Officer

Cayman National Corporation

Tel: (345) 949-4655