Citizens Holding Company Board of Directors Announces the Citizens Bank of Philadelphia Reverse Stock Split

  
    
  
  
    
      Citizens Holding Company (the “Company”) (AMEX: 
      CIZ), announced that the Board of Directors of The Citizens Bank of 
      Philadelphia, Mississippi, the Company’s 97.86 
      percent-owned subsidiary (the “Bank”), 
      unanimously approved on October 24, 2006 the declaration of a 1-for-1000 
      reverse stock split. After the reverse stock split, the Bank will be a 
      wholly-owned subsidiary of the Company. The Company expects that the 
      reverse stock split will streamline the Bank’s 
      accounting, create greater flexibility for dividends from the Bank to 
      the Company and eliminate an obsolete aspect of the Bank’s 
      capital structure.
    
    
      The reverse stock split will be effected by issuing one share of common 
      stock of the Bank for every 1,000 shares outstanding prior to the 
      reverse stock split. The reverse stock split will be effective on 
      January 1, 2007. The Bank will pay cash in lieu of any fractional shares 
      in an amount equal to the fair market value of such fractional share as 
      determined by a certified independent appraisal. The Bank expects to pay 
      approximately $2.99 million for such fractional shares on January 1, 
      2007, which cash will be drawn from available cash on hand. The Company 
      does not anticipate that the cash paid to redeem fractional shares will 
      materially affect the Company’s ability to pay 
      dividends to its shareholders.
    
    
      In connection with the reverse stock split, the Board of Directors of 
      the Bank has determined to reduce the number of authorized shares of the 
      Bank’s common stock from 120,000 shares to 120 
      shares. To effect this reduction, the shareholders of the Bank must 
      approve an amendment to the Bank’s Articles 
      of Incorporation. A special meeting of the shareholders of the Bank will 
      be held on December 19, 2006 for the purpose of approving such 
      amendment. The record date for such meeting is the close of business on 
      November 7, 2006.
    
    
      Citizens Holding Company is a one-bank holding company and the parent 
      company of The Citizens Bank of Philadelphia, both headquartered in 
      Philadelphia, Mississippi. The Bank has nineteen full service banking 
      locations in eight counties in East Central Mississippi. In addition to 
      full service commercial banking, the Company offers mortgage loans, 
      title insurance services through its subsidiary, Title Services, LLC and 
      a full range of Internet banking services including online banking, bill 
      pay and cash management services for businesses. Internet services are 
      available at the Bank web site, www.thecitizensbankphila.com. 
      Citizens Holding Company stock is listed on the American Stock Exchange 
      and is traded under the symbol CIZ. The Company's transfer agent is 
      American Stock Transfer & Trust Company. Investor relations information 
      may be obtained at the corporate website, www.citizensholdingcompany.com.
    
    
      NOTE TO INVESTORS
    
    
      This news release contains forward-looking statements regarding Citizens 
      Holding Company. All forward-looking statements involve risk and 
      uncertainty and a number of factors could cause actual results to differ 
      materially from the anticipated results or other expectations expressed 
      in the forward-looking statements. Those factors include, but are not 
      limited to, interest rate fluctuations, regulatory changes, portfolio 
      performance and other factors discussed in our recent filings with the 
      Securities and Exchange Commission. We undertake no obligation to update 
      or revise forward-looking statements to reflect changed assumptions, the 
      occurrence of unanticipated events or changes to future operating 
      results over time.
    
  
Citizens Holding Company (the "Company") (AMEX: CIZ), announced
that the Board of Directors of The Citizens Bank of Philadelphia,
Mississippi, the Company's 97.86 percent-owned subsidiary (the
"Bank"), unanimously approved on October 24, 2006 the declaration of a
1-for-1000 reverse stock split. After the reverse stock split, the
Bank will be a wholly-owned subsidiary of the Company. The Company
expects that the reverse stock split will streamline the Bank's
accounting, create greater flexibility for dividends from the Bank to
the Company and eliminate an obsolete aspect of the Bank's capital
structure.

   The reverse stock split will be effected by issuing one share of
common stock of the Bank for every 1,000 shares outstanding prior to
the reverse stock split. The reverse stock split will be effective on
January 1, 2007. The Bank will pay cash in lieu of any fractional
shares in an amount equal to the fair market value of such fractional
share as determined by a certified independent appraisal. The Bank
expects to pay approximately $2.99 million for such fractional shares
on January 1, 2007, which cash will be drawn from available cash on
hand. The Company does not anticipate that the cash paid to redeem
fractional shares will materially affect the Company's ability to pay
dividends to its shareholders.

   In connection with the reverse stock split, the Board of Directors
of the Bank has determined to reduce the number of authorized shares
of the Bank's common stock from 120,000 shares to 120 shares. To
effect this reduction, the shareholders of the Bank must approve an
amendment to the Bank's Articles of Incorporation. A special meeting
of the shareholders of the Bank will be held on December 19, 2006 for
the purpose of approving such amendment. The record date for such
meeting is the close of business on November 7, 2006.

   Citizens Holding Company is a one-bank holding company and the
parent company of The Citizens Bank of Philadelphia, both
headquartered in Philadelphia, Mississippi. The Bank has nineteen full
service banking locations in eight counties in East Central
Mississippi. In addition to full service commercial banking, the
Company offers mortgage loans, title insurance services through its
subsidiary, Title Services, LLC and a full range of Internet banking
services including online banking, bill pay and cash management
services for businesses. Internet services are available at the Bank
web site, www.thecitizensbankphila.com. Citizens Holding Company stock
is listed on the American Stock Exchange and is traded under the
symbol CIZ. The Company's transfer agent is American Stock Transfer &
Trust Company. Investor relations information may be obtained at the
corporate website, www.citizensholdingcompany.com.

   NOTE TO INVESTORS

   This news release contains forward-looking statements regarding
Citizens Holding Company. All forward-looking statements involve risk
and uncertainty and a number of factors could cause actual results to
differ materially from the anticipated results or other expectations
expressed in the forward-looking statements. Those factors include,
but are not limited to, interest rate fluctuations, regulatory
changes, portfolio performance and other factors discussed in our
recent filings with the Securities and Exchange Commission. We
undertake no obligation to update or revise forward-looking statements
to reflect changed assumptions, the occurrence of unanticipated events
or changes to future operating results over time.