Sutter Announces Closing of Progressive Lending Acquisition

Sutter Announces Closing of Progressive Lending Acquisition 


SAN FRANCISCO, Dec. 12  /PRNewswire-FirstCall/ -- Sutter Holding Company, Inc.
(OTCBB: SRHI) today announced it closed on the previously announced acquisition
of Progressive Lending, LLC, a mortgage bank with offices in Washington and
Arizona.  Progressive is licensed to do business in six other states, including
California, Oregon, Idaho, Colorado, Illinois, and Montana.

The purchase price was $1.5 million, consisting of $500,000 cash, a promissory
note for $500,000, and 49,500 shares of common stock.  The purchase price is
subject to reduction if Progressive does not earn at least $500,000 in each of
the two years following closing.  Progressive's senior management has agreed to
stay with the company and intends to grow its operations significantly.

William S. "Steve" Howard, president of Progressive Lending, commented, "We
believe this is the ideal time to partner with a company like Sutter in order to
take advantage of the current turmoil in the mortgage origination industry.  Our
expansion plans, combined with Sutter's acquisition strategy, will allow us to
gain market share from weaker competitors both organically and through
acquisition.  We are very excited about the future."

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

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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