Press Release

SOUTHERN MICHIGAN BANCORP, INC. ANNOUNCES INCREASED FIRST QUARTER EARNINGS

April 26, 2007

Coldwater, Michigan, April 26, 2007:  Southern Michigan Bancorp, Inc. (OTCBB: SOMC.OB) reported a 5.6% increase in net income for the first quarter of 2007 compared to the same quarter of 2006.  Net income increased to $978,000, or $.55 per share, for the quarter ended March 31, 2007.  Net income for the same quarter a year ago was $926,000 or $.52 per share. 

For the first quarter of 2007, Southern Michigan Bancorp, Inc. attained a return on average assets of 1.18% and a return on average equity of 13.38%, compared to first quarter 2006 results of 1.16% and 13.85%, respectively. 

Total assets at March 31, 2007 were $340.5 million, compared to $329.9 million at December 31, 2006.    

Southern Michigan Bancorp, Inc. is a holding company and the parent company of Southern Michigan Bank and Trust.  It operates 11 offices in southern Michigan providing a broad range of consumer, business and wealth management services throughout the region.  For more information please visit the Southern Michigan Bank & Trust website, www.smb-t.com.

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