Exhibit 99.1


                  American National Bankshares Approves Stock Repurchase Plan
                               And Announces Quarterly Dividend

                  FOR IMMEDIATE RELEASE (Danville, Virginia) - At its meeting on
         Tuesday, August 19, 2003, the Board of Directors of American National
         Bankshares Inc. (NASDAQ: AMNB), parent company of American National
         Bank and Trust Company, approved the repurchase of up to 250,000 shares
         of common stock between August 20, 2003 and August 17, 2004.
         Repurchases are to be made through open market purchases or in
         privately negotiated transactions and any shares repurchased under the
         plan will be cancelled and retired. Scott & Stringfellow, Inc. will
         serve as dealer-manager for the repurchase program. The Corporation has
         been repurchasing shares of its stock since August of 2000.
                  At the same meeting the Board of Directors also declared a
         quarterly cash dividend of $0.19 per share of common stock, payable on
         September 19, 2003, to shareholders of record on September 5, 2003.
         This represents an increase of 5.6% when compared to the same period
         one year prior.
                  American National Bankshares Inc. is the holding company of
         American National Bank and Trust Company, a community bank with
         fourteen offices in Danville, Chatham, Collinsville, Gretna,
         Martinsville, Henry County, and South Boston, Virginia, and
         Yanceyville, North Carolina. Services are also provided through
         seventeen ATMs, "AmeriLink" internet banking, and our 24-hour "Access
         American" phone banking. Banking subsidiaries include ANB Mortgage
         Corp. (secondary mortgage origination), ANB Investor Services (retail
         brokerage) and ANB Insurance Services (full-service insurance
         agency).Additional information is available on our website at
         www.amnb.com. The shares of American National Bankshares Inc. are
         traded on the NASDAQ National Market under the symbol "AMNB".

                  This press release may contain "forward-looking statements,"
         within the meaning of federal securities laws that involve significant
         risks and uncertainties. Statements herein are based on certain
         assumptions and analyses by the Corporation and are factors it believes
         are appropriate in the circumstances. Actual results could differ
         materially from those contained in or implied by such statements for a
         variety of reasons including, but not limited to: changes in interest
         rates; changes in accounting principles, policies, or guidelines;
         significant changes in the economic scenario: significant changes in
         regulatory requirements; and significant changes in securities markets.
         Consequently, all forward-looking statements made herein are qualified
         by these cautionary statements and the cautionary language in the
         Corporation's most recent Form 10-K report and other documents filed



         with the Securities and Exchange Commission. American National
         Bankshares Inc. does not undertake to update forward-looking statements
         to reflect circumstances or events that occur after the date the
         forward-looking statements are made.


         Brad E. Schwartz CPA
         Senior Vice President and Chief Financial Officer
         American National Bank & Trust Company
         American National Bankshares Inc. NASDAQ "AMNB"
         103 Tower Drive
         Danville, VA  24543
         434-773-2242
         434-773-2277 fax
         schwartzb@amnb.com