Exhibit 99.1

Capital City Purchases Eight First Union Offices

TALLAHASSEE, FL - Capital City Bank, a subsidiary of Capital City Bank 
Group, Inc. (Nasdaq:CCBG) has announced the signing of an agreement to 
purchase eight offices from First Union National Bank.  

The offices involved serve the Florida communities of Chipley, Sunny 
Hills, Port St. Joe, Keystone Heights, Starke (two offices), and Palatka 
(two offices).  Under the terms of this agreement, Capital City will 
purchase the office facilities and assume $218 million in deposits.  
First Union will retain loans now serviced centrally by the bank.  
Deposits will continue to be insured by the FDIC and all eight offices 
will continue to serve existing and new customers in their respective 
communities.  All associates will remain in their current positions and 
join Capital City at the closing scheduled, subject to regulatory 
approval, to occur in the fourth quarter of 1998.  Financial terms of 
the agreement were not disclosed.

William G. Smith, Jr., President and CEO of Capital City Bank Group 
added, "This major franchise expansion advances the Company's strategic 
plan which calls for growth in North and Central Florida.  Capital City 
is excited about the opportunity to introduce its style of community 
banking with local decision makers to Washington, Gulf, Bradford, Clay, 
and Putnam counties.  We expect this transaction to increase earnings 
per share in 1999."

Founded in 1895, Capital City is headquartered in Tallahassee, Florida. 
Capital City Bank has over $1.0 billion in assets and, following the 
completion of this purchase, will expand to 44 banking offices, 42 ATMs, 
and 9 Bank `N Shop locations in 17 Florida counties.