Bank of the Sierra Becomes Wholly Owned Subsidiary of Sierra Bancorp.

Business Editors

PORTERVILLE, Calif.--(BUSINESS WIRE)--Aug. 13, 2001

Bank of the Sierra announced today that effective August 10, 2001, Bank of the Sierra became a wholly owned subsidiary of Sierra Bancorp as the result of a one-bank holding company reorganization. The common stock of Sierra Bancorp opened for trading this morning on Nasdaq's National Market under the symbol "BSRR."

Sierra Bancorp is a newly formed California corporation, organized at the direction of the Board of Directors of Bank of the Sierra, in connection with the holding company reorganization. Each issued and outstanding share of Bank of the Sierra common stock was automatically converted upon the effective date of the holding company reorganization into one share of Sierra Bancorp common stock.

"Formation of the holding company represents achievement of a strategic goal to provide a new corporate structure for the Bank," notes James C. Holly, President of the Bank and the new holding company. "It will allow the Bank to better respond to changes in the banking and financial services industry, while providing greater flexibility in meeting the future financing needs of the Bank and holding company."

The Bank's expansion and acquisition strategy was a primary factor in the establishment of the holding company structure. Inherent in the expanded capabilities represented by the reorganization is the flexibility of the future acquisition of additional banking franchises which could remain autonomous in operation and retain the name of the acquired bank where that name represents franchise value.

Bank of the Sierra is the largest independent bank headquartered in the South Valley, and operates sixteen branch offices as well as five real estate centers, two agricultural credit centers and a bank card center. More information about Bank of the Sierra is available on the Bank's web site, www.bankofthesierra.com.