EXHIBIT 99.1

                       AMERICAN NATIONAL BANKSHARES INC.
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Contact:     Neal A. Petrovich - (434) 773-2242
             Senior Vice President and Chief Financial Officer

Distribute:  PR Newswire, Virginia state/local news lines

Date:        May 18, 2005

Traded:      NASDAQ National Market               Symbol:  AMNB

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          AMERICAN NATIONAL BANKSHARES INC. ANNOUNCES DIVIDEND INCREASE
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     FOR IMMEDIATE RELEASE (Danville, Virginia) -- At its meeting on May 17,
2005, the Board of Directors of American National Bankshares Inc. (NASDAQ:
AMNB), parent company of American National Bank and Trust Company, declared an
increase in the per share dividend. The corporation will pay a quarterly cash
dividend of $.21 per share on June 24, 2005, to shareholders of record on June
10, 2005. This represents an increase of $.01 per share, or 5.0%, over the prior
quarter's dividend.
     "This marks the 29th consecutive year that we have increased regular
dividends to our shareholders," stated Charles H. Majors, President and Chief
Executive Officer. "Our operating results enable us to share more with our
shareholders, maintain our strong equity position, and provide capital for
growth."
     American National Bankshares Inc. is the holding company of American
National Bank and Trust Company, a community bank with fourteen full service
offices and two loan production offices. Full service offices are located in
Danville, Chatham, Collinsville, Gretna, Martinsville, Henry County, and South
Boston, Virginia and in Yanceyville, North Carolina. Loan production offices are
located in Lynchburg, Virginia and Greensboro, North Carolina. American National
Bank and Trust Company provides a full array of financial products and services,
including commercial, mortgage, and consumer banking; trust and investment
services; and insurance. Services are also provided through eighteen ATMs,
"AmeriLink" Internet banking, and our 24-hour "Access American" phone banking.
Additional information is available on our website at www.amnb.com. The shares
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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.