Southern Michigan Bank & Trust

Press Release

SOUTHERN MICHIGAN BANCORP, INC. DECLARES CASH DIVIDEND

June 17, 2008

Coldwater, Michigan, June 17, 2008:  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 July 18, 2008 to shareholders of record July 3, 2008.   

Southern Michigan Bancorp, Inc. is a two bank holding company; the parent company of Southern Michigan Bank & Trust and FNB Financial of Three Rivers.  Its 19 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.