For Immediate Release

First Reliance Announces 3rd Quarter Pre-Tax Income of $1.3 Million – Up 83%

October 17, 2006

October 17, 2006 Florence, SC - First Reliance Bancshares, Inc., (OTC Bulletin Board: FSRL), the holding company for First Reliance Bank, today announced 3rd quarter 2006 unaudited pre-tax income of $1.3 million, an increase of $581,511, or 83%, compared to $696,754 reported the third quarter of 2005.

Unaudited net income for the three months ended September 30, 2006 increased 76%, to $865,196, as compared to $490,428 reported in the prior-year period. Earnings benefited from strong growth in both net interest income and non-interest income. Specifically, net interest income increased 22% to $4.5 million in the third quarter of 2006, while non-interest income increased by 55% to $1.2 million. Basic earnings per share grew 95%, to $0.25, an increase of $0.12 from the $0.13 reported in the prior year period.

Net Income for the nine months ended September 30, 2006 grew 73% to $2.3 million, or $0.65 per diluted share, compared to $1.3 million, or $0.24 per diluted share, for the third quarter of 2005. As was the case with the quarterly results, the higher profitability was driven primarily by higher net interest income, which increased to 26% to $11.8 million, and noninterest income, which increased 67% to 3.4 million.

As of September 30, 2006, total assets were $448.6 million, an increase of $64.5 million or 17%, over the $384.1 million reported for September 30, 2005. Loans increased 17% to $356.1 million, funded primarily by growth in deposits. Deposits increased to $373.4 million, up 20% from $312.4 million reported the prior year period.

“First Reliance Bank generated strong results for the 3rd quarter of 2006, and I am excited to report our tremendous growth in earnings and revenues, as well as our record number of loans and deposits,” said Rick Saunders, President and CEO. “This strong and well balanced growth was driven by the focus on our Easy To Do Business With™ and There’s More to Banking Than Money™ banking initiatives and fundamentals. These standards, along with our NO FEE ATMS and our extended banking hours create a convenient banking experience for our customers. Our ongoing advances in service excellence and innovation have led to a record number of accounts opened this quarter and a continuous growth in services per household.”

“First Reliance remains committed to our customers, community, and employees. Our efforts in providing employee excellence and satisfaction were recently rewarded when our employees, in a statewide survey, rated our bank as a great place to work. Results of the survey earned our bank recognition as one of the Top 15 Best Places to Work in South Carolina (Chamber of Commerce),” commented Saunders. “We are also excited to announce that we have been recognized as one of The Top 25 Fastest Growing CompaniesTM in South Carolina for 2006. 2006 marks the fourth year that we have received this honor. Much of our success would not have been possible without the hard work and dedication of each and every one of our employees.”

“Although the banking industry is constantly faced with many challenges, I am certain and optimistic that our positive trends in growth and acquisition will position us to meet and exceed our strategic goals for the year,” commented Jeff Paolucci, Senior Vice President and CFO. “First Reliance Bank generated record growth in revenue and earnings. We are excited about extending our brand to customers throughout South Carolina as we continue to focus our efforts on expansion opportunities. Our tremendous growth has spurred the need for not only an additional operational facility, but new branches in Irmo, Lexington, and Charleston.”

“The positive gains realized in the 2nd quarter continued throughout the 3rd quarter, as Low Cost/No Cost deposits increased to $65.6 million, a $6.5 million increase over the $59.1 million reported the prior year period quarter. Low Cost/No Cost deposits now represent 18% of total deposits. Total deposits for the 3rd quarter were $373.4 million, due much to our Totally Free Checking and Totally Free Business programs,” noted Paolucci.

The Company’s one bank subsidiary, First Reliance, has been recognized for its success including being the only bank ever to be named to The Top 25 Fastest Growing Companies™ in South Carolina four times including 2006 (ElliottDavis.) First Reliance Bank operates in five locations with Totally FREE Checking, Totally FREE Business, FREE coin machines, 5 Way Mortgage Service Promises and 8-8 Extended Hours in their Florence location.

Based in Florence, South Carolina, First Reliance Bancshares, Inc., is a bank holding company with approximately $450 million in assets as of September 30, 2006. First Reliance Bank, which was opened in 1999, is the Company's sole operating subsidiary. The bank has two branch locations and a Technology Center in Florence, SC. In addition, the bank’s aggressive statewide growth strategy includes current branches in Lexington, Mount Pleasant and downtown Charleston SC. During the fourth quarter of 2005, the bank acquired its third Charleston branch site located at 2031 Sam Rittenberg Blvd. Charleston, SC. Additional branch expansions over the next 24 months include new sites located in North Charleston, the Midlands Region, and the Upstate Region. The Company's stock is traded on the OTC Bulletin Board under the symbol FSRL.OB. Information about the Company is available on our website at www.firstreliance.com.

This press release contains forward-looking statements about branch openings within the meaning of the Securities Litigation Reform Act of 1995. Forward-looking statements give our expectations or forecasts of future events. Any or all of our forward-looking statements here or in other publications may turn out to be incorrect. They can be affected by inaccurate assumptions or by known or unknown risks and uncertainties. Many such factors will be important in determining our actual future results. Consequently, no forward- looking statements can be guaranteed. Our actual results may vary materially, and there are no guarantees about the performance of our stock.

We undertake no obligation to correct or update any forward-looking statements, whether as a result of new information, future results or otherwise. You are advised, however, to consult any future disclosures we make on related subjects in our reports to the SEC.