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Announcements:

MEDIA CONTACT: Vicki Kessler 615-320-7532
FINANCIAL CONTACT: Harold Carpenter 615-744-3742
WEBSITE: www.pnfp.com

Pinnacle Financial Reports 100 Percent Increase in Earnings Per Share
Assets Grow to $586 million

NASHVILLE, Tenn., July 20, 2004 - Pinnacle Financial Partners Inc. (Nasdaq: PNFP), the holding company for Pinnacle National Bank, today reported that net income for the quarter ended June 30, 2004, was $1,168,000, or $0.14 per diluted share, an increase of 100 percent when compared to Pinnacle's net income of $537,000, or $0.07 per diluted share for the quarter ended June 30, 2003. The company also reported net income for the six months ended June 30, 2004, of $2,239,000, or $0.27 per diluted share, an increase of 125 percent when compared to Pinnacle's net income of $910,000, or $0.12 per diluted share for the six months ended June 30, 2003.

Return on average assets for the quarter ended June 30, 2004, was 0.82 percent compared to 0.59 percent for the same quarter last year. Return on average stockholders' equity for the quarter ended June 30, 2004, was 12.83 percent compared to 6.54 percent for the same quarter last year. The firm's efficiency ratio (noninterest expense divided by net interest income and noninterest income) improved to 63.2 percent during the second quarter of 2004 compared to 69.3 percent during the second quarter of 2003.

Total assets grew to $586 million as of June 30, 2004, up 35 percent on an annualized basis from the $498 million reported at December 31, 2003, and up 45 percent from the $403 million reported at June 30, 2003. Loans as of June 30, 2004, were $355 million compared to $297 million at December 31, 2003, and $255 million at June 30, 2003. Total deposits increased to $467 million at June 30, 2004, compared to $391 million at December 31, 2003 and $309 million at June 30, 2003.

Net loan growth for the quarter ended June 30, 2004, was $32 million compared to $26 million during the first quarter of 2004 and $27 million during the second quarter of 2003. Total deposit growth for the quarter ended June 30, 2004, was $30 million compared to $47 million during the first quarter of 2004 and $42 million during the second quarter of 2003.

"Strong loan demand was a major contributor to the excellent results during the second quarter, and we expect demand to accelerate in the third quarter," said M. Terry Turner, President and CEO of Pinnacle Financial Partners. "Our strategy to add a number of seasoned professionals with strong track records in the Nashville financial community throughout the year continues to bring more and more of Nashville's leading businesses to Pinnacle."

Net interest income for the quarter ended June 30, 2004, was $4.5 million compared to $3.0 million for the quarter ended June 30, 2003. Net interest income for the six months ended June 30, 2004, was $8.7 million compared to $5.6 million for same period in 2003. The net interest margin for the second quarter of 2004 was 3.51 percent, which was higher than the net interest margin of 3.49 percent reported during the first quarter in 2004. The percentage of daily floating rate loans to total loans was 52.5 percent at June 30, 2004, compared to 52.4 percent at March 31, 2004, and 51.7 percent at June 30, 2003.

The provision for loan losses was $449,000 for the second quarter of 2004 compared to $354,000 in the first quarter of 2004 and $347,000 for the same quarter in 2003. The provision for loan losses was $802,000 for the first six months of 2004 compared to $635,000 for the period in 2003. The allowance for loan losses represented 1.26 percent of total loans at June 30, 2004. Annualized net charge offs to average loans amounted to 0.03 percent for the quarter ended June 30, 2004. Nonaccrual loans as a percentage of total loans increased to 0.38 percent at June 30, 2004, due to one borrower who has been experiencing cash flow difficulties over the last few months. "Our credit quality continues to be one of our most significant strengths," Turner said. "We believe the reason we have been able to perform so well from a credit quality standpoint is our success in attracting the most experienced team of bankers in our area."

Additionally, during the second quarter of 2004, the firm was successful in receiving approximately $354,000 in proceeds from another borrower that had been on nonaccruing status for the last few quarters. Approximately $260,000 of these proceeds have been included in the firm's earnings for the second quarter of 2004. The firm anticipates receiving additional proceeds from the liquidation of other assets related to this particular borrower.

Noninterest income for the quarter ended June 30, 2004, was $1.2 million compared to $877,000 during the same quarter in 2003. Noninterest income for the six months ended June 30, 2004, was $2.4 million compared to $1.3 million during the same period in 2003. These increases were due to the continued development of Pinnacle's mortgage origination unit, gains recognized on the sale of loan participations, increased depositor service charges due to more deposit accounts and increased investment services income from Pinnacle Asset Management. For the quarter ended June 30, 2004, noninterest income represented approximately 20.7 percent of total revenues (the sum of net interest income and noninterest income), compared to 22.7 percent for the same quarter in 2003.

Noninterest expense for the quarter ended June 30, 2004, was $3.6 million compared to $2.7 million for the same quarter in 2003. Noninterest expense for the six months ended June 30, 2004, was $7.0 million compared to $4.9 million for the same period in 2003. Pinnacle continues to increase expense levels in order to capitalize on market opportunities:

• Pinnacle currently has 102 employees with 74 working in client contact areas and 28 in operational and corporate areas. Pinnacle anticipates adding 24 more employees in 2004, including 16 who are expected to be in client contact areas, with the remainder in operational and corporate areas.
• Construction is nearing completion for the firm's West End Avenue office in Nashville. This office is located adjacent to Vanderbilt University and is within close proximity to Nashville's medical community, including several prominent hospitals and medical office facilities.
• Pinnacle has also announced plans to open its seventh office late this year in Franklin, Tenn., which is the county seat of Williamson County. The Franklin office will be the firm's third office in Williamson County, which has the highest per capita income and one of the highest growth rates of all counties in Tennessee.

Based on anticipated growth trends and the anticipated results from these trends, Pinnacle estimates its third quarter 2004 diluted earnings per share will approximate $0.15 to $0.17. Pinnacle estimates diluted earnings per share for the year ending Dec. 31, 2004, to be $0.59 to $0.63. Management has developed several scenarios under which these estimates can be achieved and believes these estimates to be reasonable based on these scenarios. However, unanticipated events or developments may cause the actual results, performance or achievements of Pinnacle to differ materially from these estimates.

Pinnacle Financial Partners, the largest financial services firm headquartered in Nashville, provides a full range of banking, investment and insurance products and services targeted at small- to mid-sized businesses and their owners/operators. A number of Pinnacle's senior financial advisors provide comprehensive wealth management services to help clients increase, protect and distribute their assets.

Pinnacle opened its first office in October 2000 in Commerce Center in Downtown Nashville. Since then the firm has added Nashville offices in Rivergate and Green Hills and in Brentwood and the Cool Springs area of Williamson County.

Additional information concerning Pinnacle can be accessed at www.pnfp.com.

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Certain of the statements in this release may constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act"). The words "expect," "anticipate," "intend," "plan," "believe," "seek," "estimate" and similar expressions are intended to identify such forward-looking statements, but other statements not based on historical information may also be considered forward-looking. All forward-looking statements are subject to risks, uncertainties and other facts that may cause the actual results, performance or achievements of Pinnacle to differ materially from any results expressed or implied by such forward-looking statements. Such factors include, without limitation, (i) unanticipated deterioration in the financial condition of borrowers resulting in significant increases in loan losses and provisions for those losses, (ii) increased competition with other financial institutions, (iii) lack of sustained growth in the economy in the Nashville, Tennessee area, (iv) rapid fluctuations or unanticipated changes in interest rates, (v) the inability of Pinnacle to satisfy regulatory requirements for its expansion plans, and (vi) changes in the legislative and regulatory environment, a more detailed description of various risks is contained in Pinnacle's most recent annual report on Form 10-KSB. Many of such factors are beyond Pinnacle's ability to control or predict, and readers are cautioned not to put undue reliance on such forward-looking statements. Pinnacle disclaims any obligation to update or revise any forward-looking statements contained in this release, whether as a result of new information, future events or otherwise.