Schaller Equity Partners Proposes Slate of Directors for Election at Cardinal Bankshares Corporation's 2012 Annual Meeting

WINSTON-SALEM, N.C., Feb. 24, 2012 /PRNewswire/ -- Schaller Equity Partners ("Schaller") announced today that it has provided notice to Cardinal Bankshares Corporation ("Cardinal") (OTCBB: CDBK) of its desire to nominate a slate of nominees for election to Cardinal's Board of Directors (the "Board") at Cardinal's 2012 Annual Meeting of Stockholders, which is expected to take place on April 25, 2012 (the "Meeting"). Cardinal is headquartered in Floyd, Virginia and is the public holding company for the Bank of Floyd (the "Bank").

Schaller, which is an approximately 9.8% shareowner of Cardinal, identified the following persons as its intended nominees for election to the Board at the Meeting: Ms. Carol S. Jarratt and Messrs. T. Mauyer Gallimore, Bobby L. Gardner Sr., John Paul Houston and James W. Shortt (each a "Nominee," and collectively, the "Nominees"). Schaller currently intends to conduct a proxy solicitation to support these Nominees.

Douglas E. Schaller, President of Schaller's general partner, stated: "We selected these people as our potential nominees because they are proven business and community leaders from the Floyd area, whom we believe would bring much-needed insight, accountability and fresh and relevant perspectives to the Board, if they were to be nominated and elected."

Schaller's notice to Cardinal identifying the Nominees can be found among Cardinal's other filings on the website maintained by the Securities and Exchange Commission at:
http://www.sec.gov/edgar/searchedgar/companysearch.html

THIS PRESS RELEASE IS NOT A SOLICITATION OF ANY ACTION BY CARDINAL STOCKHOLDERS. IF SCHALLER, ACTING ALONE OR THROUGH OR WITH ONE OR MORE AFFILIATES, ENGAGES IN A PROXY SOLICITATION IN SUPPORT OF ANY NOMINEE, SCHALLER WILL PREPARE AND FILE A PROXY STATEMENT WITH THE SECURITIES AND EXCHANGE COMMISSION (THE "SEC") AND DISTRIBUTE THE SAME TO CARDINAL STOCKHOLDERS.  CARDINAL STOCKHOLDERS ARE ADVISED TO READ SUCH PROXY STATEMENT WHEN IT BECOMES AVAILABLE, BECAUSE IT WILL CONTAIN IMPORTANT INFORMATION, INCLUDING INFORMATION RELATING TO THE PARTICIPANTS IN THE PROXY SOLICITATION. ACCORDINGLY, CARDINAL STOCKHOLDERS SHOULD RELY ON SUCH PROXY STATEMENT, WHEN AND IF IT IS PREPARED AND DISTRIBUTED, AND NOT ON THIS PRESS RELEASE.  IF FILED, THE DEFINITIVE PROXY STATEMENT AND FORM OF PROXY WILL BE MAILED TO CARDINAL STOCKHOLDERS AND WILL ALSO BE AVAILABLE AT NO CHARGE AT THE SEC'S WEBSITE AT HTTP://WWW.SEC.GOV.

SOURCE Schaller Equity Partners