Exhibit 99.1

Capital City Expands Into Georgia

TALLAHASSEE, FL - Capital City Bank Group, (Nasdaq: CCBG), 
announced the signing of a definitive agreement to acquire 
Grady Holding Company and its subsidiary First National 
Bank of Grady County in Cairo, Georgia.  The acquisition 
represents Capital City's initial banking offices in the 
state of Georgia.

First National Bank of Grady County is a $114 million asset 
institution with offices in Cairo and Whigham, Georgia, and 
maintains the largest market share in Grady County.  The 
bank's main office is approximately 35 miles from 
Tallahassee.

Closing is scheduled for the second quarter of 1999 and 
will be accounted for as a pooling of interests.  Capital 
City will issue 21.5 shares for each of the 60,910 shares 
of First National Bank of Grady County.  The transaction is 
expected to be accretive in the first year.

Capital City President and Chief Executive Officer, William 
G. Smith, Jr., said' "I am excited about Capital City's 
expansion into South Georgia and having John Wight, 
majority owner of Grady, join the Capital City Bank Group 
Board.  John is a successful businessman who will bring 
great talents to Capital City."  Smith further commented, 
"Chuck Stafford, President of First National Bank of Grady 
County, is a superb banker and I look forward to working 
with Chuck and having the team join the Capital City 
family."  John Wight was equally enthusiastic in his praise 
for Capital City.  "I am pleased to continue with a company 
which shares the same feelings about community banking and 
can bring an array of products and services to South 
Georgia."

Capital City Bank Group, Inc., is a $1.3 billion financial 
services company headquartered in Tallahassee, Florida, 
providing traditional deposit and credit services, asset 
management, trust, mortgage banking, credit cards, data 
processing, and securities brokerage services.  Founded in 
1895, the company has 44 banking offices, 42 ATM's, and 9 
Bank 'n Shop locations.