A new plane stress model of composite beams with interlayer slips is developed by the state space method. By virtue of the method of Fourier series expansion, the solution is obtained analytically for beams with two simply supported ends, which rigorously satisfies the governing equations and the specified boundary conditions. The solution includes the effect of shear deformation and is two-dimensionally exact since no Euler-Bernoulli hypothesis of the deformation is introduced, which is usually assumed in the one-dimensional theory. The results obtained from the present two-dimensional method are compared with those available in literature based on the one-dimensional theory. Parametric studies on the rigidity of the shear connectors are also conducted.