Southern Michigan Bank & Trust

Press Release

SOUTHERN MICHIGAN BANCORP, INC. DECLARES CASH DIVIDEND

September 18, 2007

Coldwater, Michigan, September 18, 2007:  Southern Michigan Bancorp, Inc. (OTCBB: SOMC.OB) declared a quarterly dividend of $.20 per share on the outstanding shares of the corporation’s stock.  The dividend is payable on October 19, 2007 to shareholders of record October 5, 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.