EX-SHERIFF'S INVESTIGATOR PLEADS GUILTY IN DRUG CASE

A former investigator with the Washington County Sheriff's Office has
pleaded guilty in federal court to conspiring to distribute and possess
with the intent to distribute more than 500 grams of cocaine.

According to a statement from the U.S. attorney for the Eastern District of
North Carolina, James Edward Leonard, 55, of Plymouth had set up a purchase
of 2 kilograms of cocaine during the summer of 2003 from a person who was
later revealed to be a confidential informant. The guilty plea was accepted
by U.S. District Judge Malcolm J. Howard in federal court in Greenville.
Leonard faces a mandatory minimum sentence of five years in prison without
parole and up to a maximum of 40 years, a fine of $2 million and supervised
release for four years.

Conspiring in the transaction with the late Albert Jean Stanley, Leonard
had accepted money to provide license tag information and criminal history
to the informant, the U.S. Attorney's Office said. Both men also had
accepted money from the informant to shield from other law-enforcement
officers illegal drug shipments.

Leonard was arrested Sept. 11, 2003, and was soon terminated from his
position with the sheriff's office. Washington County Sheriff Stanley James
said he had hired Leonard as a deputy about three years ago and promoted
him to investigator about two years ago.

Before coming to Plymouth, he said, Leonard had worked in law enforcement
for 17 years in Florida and in Martin County.

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Until the day of Leonard's arrest, James, who has been sheriff since 1998,
said there was no indication he was involved in the purchase or sale of
illegal drugs.

"He did not give me any suspicion that anything like this was going on,"
the sheriff said Tuesday. "It was totally, totally shocking and surprising."

James said that he believed that Leonard's motivation was a need for money,
not drugs. He said that regular drug tests administered to sheriff's office
employees never showed any drug use by Leonard.

"He was a hard, hard worker," James said.

Leonard had no criminal record, James said.

Assistant U.S. Attorney John H. Bennett said it was stated during the court
hearing Monday that Leonard had accepted a total of no more than $1,500
from the informant to hide the purchase and sale of 500 grams - about 18
ounces - of powdered cocaine. Bennett said Leonard also was intending to
take a cut of the sales Stanley made.

Stanley, a 52-year-old Plymouth resident, died of natural causes in
January, Bennett said.

Released on bond after his arrest, Leonard was taken into custody Monday
after the court hearing. He is scheduled to be sentenced June 7 in federal
court in Greenville.