Southern Michigan Bank & Trust

Press Release

SOUTHERN MICHIGAN BANCORP, INC. ANNOUNCES CASH DIVIDEND

June 19, 2007

Coldwater, Michigan, June 19, 2007:  Southern Michigan Bancorp, Inc. (OTCBB: SOMC.OB) announced today that its board of directors has declared a quarterly cash dividend of $.20 per share.  The dividend is payable July 20, 2007, to shareholders of record July 6, 2007.

Southern Michigan Bancorp, Inc. is a holding company and the parent company of Southern Michigan Bank and Trust.  Its 11 offices throughout southern Michigan provide 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.