WINSTON-SALEM, N.C., Feb. 28, 2012 /PRNewswire/ — Schaller Equity Partners (“Schaller”) announced today that it has filed an amendment to its Schedule 13D filing with the Securities and Exchange Commission to quash inaccurate rumors that have been circulating in the Floyd, Virginia area. The rumors are that Schaller currently plans or intends to cause the sale of Cardinal Bankshares Corporation (“Cardinal”) (OTCBB: CDBK) and/or the Bank of Floyd (the “Bank”) or to cause the loss of jobs by unspecified numbers of employees of Cardinal or the Bank. In its SEC filing, Schaller states emphatically that it has no such plan or intention.

The earlier announcement of Schaller’s current intention to conduct a proxy solicitation in support of certain nominees for election as directors of Cardinal, which appears to have ignited the rumors, does not constitute either such a plan or intention. Moreover, even if such a proxy solicitation were to be implemented by Schaller, and the nominees proposed by Schaller were elected as directors of Cardinal, Schaller would not have any right or authority to cause any such sale or employee termination. Schaller is not otherwise seeking any such right or authority.

Schaller, which is an approximately 9.8% shareowner of Cardinal, has previously 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.

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 WILL BE AVAILABLE AT NO CHARGE AT THE SEC’S WEBSITE AT HTTP://WWW.SEC.GOV.

SOURCE Schaller Equity Partners