Sutter Announces Agreement to Merge With Insurance Broker

Sutter Announces Agreement to Merge With Insurance Broker 


SAN FRANCISCO, Nov. 22  /PRNewswire/ -- Sutter Holding Company, Inc. (OTC:SRHI)
(BULLETIN BOARD: SRHI)  today announced it has signed a definitive agreement to
merge with FLF, Inc. d/b/a Diversified Risk Insurance Brokers, a commercial
property & casualty insurance broker based in Emeryville, California.

The consideration to be paid to Diversified Risk's shareholders is a
combination of cash and shares of common stock.  Diversified Risk's
shareholders shall be entitled to nominate two members of Sutter's board of
directors and all of Diversified Risk's shareholders have agreed to long-term
employment agreements with the company and intend to grow its operations
significantly.

Will Knuff, Sutter's co-chief executive officer, commented, "We are thrilled to
have the team at Diversified Risk join the Sutter family.  With a strong
corporate culture, revenue per employee that is substantially above the
industry average, and outstanding employee tenure, we believe that Diversified
Risk is a platform well-suited to building a leading insurance brokerage
business.  We look forward to their participation in Sutter as owner-managers
and to helping them to grow their business meaningfully."

Michael Flynn, Diversified Risk's chief executive officer, stated, "The people
who make up Diversified Risk are proud of the fact that they have achieved a
successful profit in each of the last 27 years.  Our excitement about this
merger is from our belief that life, including the business part, is lived
through relationships.  Merging with the people at Sutter given their proven
track records in finance and a vision shared with us for a correct moral
compass is very invigorating for our combined future."

About Sutter Holding Company:  Sutter is a diversified financial services
holding company whose operations currently consist of Easton Mortgage
Corporation and Progressive Lending, LLC. Sutter intends to continue to seek
profitable acquisition candidates in the financial services sector.

About Diversified Risk Insurance Brokers:  Diversified Risk is one of the
largest independently owned commercial insurance agencies in California. The
company provides services to a broad range of clients in the transportation,
construction, professional, technology, medical, municipal and property
industry segments, and maintains long-standing relationships with a number of
major insurance carriers. DR is owned by four partners, two of whom founded the
business in 1977. (http://www.drib.com/)

This press release contains certain current and forward-looking statements and
information relating to Sutter Holding Company, Inc. and its investments,
("we", "us" or the "Company") that are based on the beliefs of its management
as well as assumptions made by and information currently available to its
management. When used in this release, the words "anticipate," "believe,"
estimate," expect," "intend," "plan," "future," and similar expressions, as
they relate to the Company or its management, are intended to identify
forward-looking statements. These statements reflecting management's current
view about our proposed business operations are subject to certain risks,
uncertainties and assumptions. Should any of these risks or uncertainties
materialize, or should underlying assumptions prove incorrect, or should
information currently believed to be true prove to be untrue, actual results
may vary materially from those described in this press release as anticipated,
estimated or expected. Factors which could cause or contribute to such
differences include, but are not limited to, factors detailed in the Securities
and Exchange Commission filings of the Company; economic downturns affecting
the operations of the Company or any of its business operations, competition,
the continued ability of the Company to generate or obtain sufficient working
capital to continue its operations, and the ability of the Company to
successfully identify and implement any strategic alternatives. The
forward-looking statements contained in this press release speak only as of the
date hereof and the company disclaims any intent or obligation to update these
forward-looking statements. 

DATASOURCE: Sutter Holding Company, Inc.



CONTACT:  Karen LaMonte of Sutter Holding Company, Inc., [phone]

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