Exhibit 99.1

                             Shore Bancshares, Inc.
                               18 E. Dover Street
                             Easton, Maryland 21601
                               Phone 410-822-1400

                                  PRESS RELEASE

                     Shore Reports Record Earnings for 2003

February 17, 2004

Easton,  Maryland  - Shore  Bancshares,  Inc.,  (NASDAQ - SHBI)  reported  an 8%
increase in net income for 2003.  Net income was  $9,496,000  for the year ended
December 31, 2003 compared to $8,790,000 for 2002. On a per share basis, diluted
net income was $1.74 for 2003 compared to $1.62 for 2002.

Fourth quarter  earnings per share,  on a diluted  basis,  were $.43 compared to
$.44 for the same period in 2002.  Net income for the fourth quarter of 2003 was
$2,324,000,  or 3.4% less than the 2002 fourth quarter  earnings and 5.9% higher
than the 2003 third quarter earnings.

Interest rates remained low throughout 2003 and, despite earning asset growth, a
low interest rate environment made it difficult to increase interest income. The
Company was able, however, to significantly reduce its overall interest expense.
The overall rate paid for interest bearing deposits in 2003 declined by 72 basis
points or 27.7% over the rate paid in 2002. This decline in rates resulted in an
increase in net interest income of 3%. Net interest  income totaled  $24,596,000
for the year,  compared  to  $23,868,000  for  2002.  Interest  expense  totaled
$9,743,000 for 2003 compared to $12,438,000 for 2002.

Noninterest  income for 2003 was  $9,845,000,  which  represents  an increase of
$3,877,000  over 2002. This increase was primarily a result of the operations of
the  Company's  insurance  subsidiaries,  which  were  acquired  on May 1, 2002.
Insurance agency commissions  totaled $6,037,000 for 2003 compared to $2,872,000
for 2002. Increases in gains on investment  securities and fees generated by the
Company's mortgage banking operations resulted in additional  noninterest income
of $290,000 and $351,000 for the year, respectively.

Noninterest  expenses,  excluding  the  provision  for credit  losses and income
taxes, also increased during 2003, totaling  $19,344,000 compared to $15,960,000
for 2002.  Approximately  $2,388,000 of the increase relates to the operation of
the  insurance  subsidiaries,  with  the  remainder  due to  increased  costs of
operating the Company's depository institution affiliates.

The Company's  provision for credit losses for the years ended December 31, 2003
and 2002 was $335,000 and $356,000,  respectively.  For the three-month  periods
ended  December 31, 2003 and 2002,  the provision for credit losses was $100,000
and $79,000, respectively.




Total assets were  approximately  $705 million at December 31, 2003  compared to
$654 million at December 31, 2002. The increase was primarily the result of loan
growth funded by increased  deposits.  Total loans increased $35 million in 2003
totaling  $475 million at December 31, 2003,  and total  deposits  increased $47
million totaling $592 million at December 31, 2003.

The Company paid cash dividends totaling $0.66 per share during 2003 compared to
$0.60 per share paid in 2002, a 10% increase.

Shore Bancshares,  Inc. is a financial holding company  headquartered in Easton,
Maryland  and is the largest  independent  bank holding  company  located on the
Eastern Shore. It owns all of the outstanding  capital  securities of The Talbot
Bank of Easton,  Maryland and of The Centreville National Bank of Maryland.  The
Company also owns two insurance agencies, The Avon-Dixon Agency, LLC and Elliott
Wilson Insurance,  LLC, one insurance  premium finance company,  Mubell Finance,
LLC, and an investment adviser firm, Wye Financial Services, LLC.

Forward-Looking Statements

This press  release may  contain  forward-looking  statements  as defined by the
Private  Securities  Litigation Reform Act of 1995.  Forward-looking  statements
present  management's  expectations,  beliefs,  plans and  objectives  regarding
future  financial  performance,  and  assumptions or judgments  concerning  such
performance.  Any  discussions  contained in this press  release,  except to the
extent that they contain historical facts, are  forward-looking  and accordingly
involve estimates, assumptions,  judgments and uncertainties. There are a number
of factors that could cause actual results or outcomes to differ materially from
those addressed in the forward-looking  statements. Such factors are detailed in
Part I, Item 1 of the  Company's  Annual Report on Form 10-K, as amended on Form
10-K/A, for the year ended December 31, 2002, under the heading "Risk Factors."

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For further information contact: W. Moorhead Vermilye, President and CEO