Alliance Bancshares 2008 Shareholder Meeting.

CULVER CITY, Calif. -- Alliance Bancshares California, (OTCBB:ABNS) the bank holding company of Alliance Bank, held its 28th Annual Shareholders Meeting on Friday, May 23, 2008, at the Four Points Sheraton in Culver City. The shareholders approved the election of all of the directors, ratified the selection of McGladrey & Pullen, LLP as independent auditors for the fiscal year 2008 and approved the waiver of the right of redemption of the Series A and Series B preferred shares.

Curtis S. Reis, Chairman and Chief Executive Officer, stated:

"Going back a decade to year end figures, our book value has risen from $1.11 to over $6.00 per share. Our total assets have risen from $66 million to over a billion (without any acquisitions). That is the good news.

"Obviously, our performance in the past six months or so has been very disappointing. While we were fortunate to show a modest profit in the first quarter, we are not expecting a quick turn-around. We have been setting aside significant amounts in our loan loss reserve for some time now. In 2007, we provided $10.4MM and in Q1 this year, our provision, including recoveries, was about $2.5MM. While it clearly hurt our earnings in 2007 and thus far in 2008, we are glad we did it. We are assuming that things are not going to improve in the economy this year and quite possibly longer. Thus, our strategy is to continue to provide sufficient amounts to cover the losses that we can expect during this recession.

"I draw little comfort from the troubles of a majority of the banks in Southern California and elsewhere. The reality is that most experts did not come close to predicting the speed and magnitude of this housing crisis. We all sensed that things would slow down. We all sensed that home prices were too high. Few, if any, sensed that the housing growth was fueled primarily by speculators, people with no down payments, people with unverified income, coupled with massive falsification of mortgage applications, dishonest, greedy brokers, dishonest or inept rating agencies, dishonest packagers and sellers of mortgages and totally lax regulation by the US and State governments in this area.

"I read an article in the New York Times recently where Robert Rubin was interviewed. Here is a guy with more experience and knowledge about finance than perhaps anyone in America. He admitted, 'I was caught totally by surprise by all this!'

"I looked up the economic forecast of the (LAEDC) Los Angeles Economic Development Corporation from as recently as last July. Here are some of their predictions: 'Moderate economic growth,' 'No recession,' the prime rate will stay at 8.25% (only off by 325 basis points!), Fed funds will stay at 5.25% (Now at 2%), and 'the 2008-2009 Federal deficit will be about $200 billion.' It looks like $400 - 600 billion to the rest of us now.

"My point is that we all got caught. Because there is great uncertainty about where the bottom is, what if anything, the US will do to shore up the mortgage market, who will be our next President, the war and other major issues, we can make no firm guesses on when and where our nation's problems will end. Make no mistake Alliance is in the grip of this web.

"Although we are shrinking our exposure to construction related loans every quarter and working diligently to reduce our non-performing loans, all the banks will need some signs of economic stability to be able to see real daylight.

"While a lower prime rate may help some borrowers make their payments, the cost of funds has not come close to dropping commensurately. We have seen our margins shrink significantly as have virtually all banks. We have made major strides in reducing expenses and staff levels. One yardstick I use is assets per employee. We have gone from about $6.4MM in assets per employee to $7.8MM in the last year or so.

"We have a terrific, experienced, dedicated team at Alliance who are working hard to help us turn things around. The other good news is that Southern California is perhaps the greatest economic area in the world; and longer term, things will clearly brighten up."

Alliance Bancshares California is holding company of Alliance Bank. Alliance Bank is one of the leading independent business banks headquartered in Southern California. Alliance Bank offers a wide range of financial solutions tailored to meet the needs of small to mid-sized businesses, professionals and executives. Alliance Bank's strategy focuses on delivering progressive products and services including deposit and cash management services as well as commercial, small business, asset-based, construction and real estate financing. Founded in 1980, Alliance Bank has regional banking centers in Culver City, Irvine, Woodland Hills, Burbank and West Los Angeles. Find Alliance Bank on the Web at www.allbank.com.

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A better way to bank

Statement in the news release that are not historical facts or which refer to Company's expectations or beliefs constitute "forward looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements regarding the Company's future performance or financial condition are based on current information and are subject to a number of risks and uncertainties that could cause actual results to differ significantly from those expected at this time. These risks and uncertainties relate to such matters as, but are not limited to: increased competition from other financial institutions; changes in local national economic conditions and changes in Federal Reserve Board monetary policies, which could cause interest rates to increase, and loan demand to decline, and thereby reduce net margins and operating results; increased government regulation, which could increase the cost of operations; the Company's ability to successfully enter new markets or introduce new financial products or services; the costs and the possible adverse impact on operating results of planned growth and expansion; and continued performance of the Company's loan portfolio.

These, as well as other factors and uncertainties, are discussed in greater detail in the Company's reports filed with the Securities and Exchange Commission, including its Annual Report on Form 10-K and its Quarterly Reports on Form 10-Q. Readers are urged to review those reports and are cautioned not to place undue reliance on the forward-looking statements, which speak only as of the date of this news release. The Company also disclaims any obligation to update forward-looking statements whether as a result of new information, future events, or otherwise.