BancorpSouth Announces Increase in Quarterly Dividend
Twenty-first Consecutive Increase in Annual Dividends

At their regular quarterly meeting on October 27, 2004, the Board of Directors of BancorpSouth, Inc. declared a quarterly cash dividend of $0.19 per common share, an increase of 5.56% in the previous $0.18 per share quarterly amount paid on the Company's common stock. The dividend is payable January 3, 2005 to shareholders of record at the close of business on December 15, 2004.

Aubrey Patterson, Chairman and Chief Executive Officer of BancorpSouth, commented, "We are very pleased to announce this increase in our quarterly dividend, continuing our 21-year record of consecutive annual dividend increases. This latest increase reflects both BancorpSouth's strong capital base and the Board's confidence in the Company's continuing prospects for profitable growth."

For the third quarter ended September 30, 2004, BancorpSouth reported net income of $27.6 million, or $0.36 per diluted share. For the first nine months of 2004, net income was $86.0 million, or $1.11 per diluted share. BancorpSouth, Inc. is a bank holding company headquartered in Tupelo, Mississippi with approximately $10.6 billion in assets. BancorpSouth operates banking, insurance, and financial service offices in Alabama, Arkansas, Mississippi, Tennessee, Texas and Louisiana.

SOURCE: BancorpSouth, Inc.

CONTACT: L. Nash Allen, Jr., Treasurer and Chief Financial Officer,
+1-662-680-2330, or Gary C. Bonds, Senior Vice President and Controller,
+1-662-680-2332, both of BancorpSouth, Inc.