Sutter Holding Acquires CIC & Company, Korea's Leading Children's Apparel Company.

SAN DIEGO -- Sutter Holding Co. (OTC: SRHI) is pleased to announce that it has acquired the assets of CIC & Company in a stock purchase transaction. Formed in 1999, CIC & Company has developed into the leading childreneIUs apparel company in Korea. CICeIUs premium brands are known for their style and quality and are sold in the leading retail apparel stores in Korea, China and Japan.

eIuWe are pleased to have acquired KoreaeIUs leader in childreneIUs fashion and look forward to expanding their brands into the North American Market,eIN said Zirk Engelbrecht, SuttereIUs outgoing Chairman. eIuThis acquisition is a substantial opportunity for both Sutter and CICeIUs shareholders,eIN added Mr. Engelbrecht. CIC & Company will continue to trade under the symbol SRHI until assigned its new trading symbol.

The company currently operates eIuRenoma JunioreIN brand, which has become the nationeIUs top premium kideIUs apparel line, expanding to over 50 retail chains nationwide. This growth resulted in profits doubling to over $1 million on revenues of $15.6 million in fiscal 2005. eIuCICeIUs management team is well-equipped with extensive experience in the fashion retail business and proven expertise in consumer marketing,eIu said Lee Jung Woo, CICeIUs Chief Executive Officer. eIuWe are ready to enter North America and grow our business exponentially,eIN he added.

While CIC & Company is the leader in childreneIUs fashion in Korea, its innovative marketing systems enable the company to create solid, long-term relationships with targeted customers through analysis of customer behavior and state of the art customer marketing tools. These combined factors allow the company to cater to the specific fashion needs of the customer and enable the retailer to provide more advanced marketing and advertising. The Company will utilize already established nationwide distribution channels, logistics and a strong brand marketing system to build upon its multinational apparel business.

CIC plans to continue with the purchase of new brands and expand their international business into new markets. As premium clothing brands are added to their portfolio, CIC expects to continue to improve profitability through manufacturing economies of scale and benefits derived from state-of-the-art marketing approaches.

Sung Park, the Chairman of the Board for CIC, said today, eIuCIC is excited to complete this acquisition and move into the US Market. Our goal is to create an asset which provides long-term growth for our investors. We believe our unique pairing of quality brands and state of the art marketing technologies will allow us to become one of the leaders in global fashion in the coming years.eIN

CIC recently opened their North America Marketing Office in San Diego, CA. CIC intends to expand this location as a base for global marketing and brand expansion.

About CIC & Company

CICeIUs Retail Division: eIuRenoma JunioreIN (premium kidseIU apparel: French license): This luxurious and modern kidseIU apparel product line is mainly targeted for 5 to 17 year olds. This product includes formal wear (suits, dresses, and ties), semiformal wears, and accessories (hats, shoes, umbrellas, etc.) lines. Renoma Junior is a leading brand with a complete management system, consisting of its own planning & designing and merchandising & producing, and retail & franchising system. This division has 50 channel distributions all over Korea in major department stores, internet shopping-malls and road shops. Upon its launching, for the first 3 years, the brand generated consistently increasing profit. In 2004 the Company had revenues of $14.2 million (2% net profit) and in 2005 revenues of $15.6 million (7% net profit). The companyeIUs growth will be enhanced through active acquisitions of new brands, both domestic and international. Currently, the company is in discussion with leading bands in childreneIUs and womeneIUs apparel segments. We believe that the CompanyeIUs value chain will be strengthened through a strong synergy effects as these segments shares the same decision makers and buying processes with the Renoma brand. Moreover, internally, the Company could achieve a higher profitability through reaching an economy of scale in operation, resulted from the mergers.

CIMS & IMMS Division (Customer Interaction Marketing Services & Interactive Mobile Marketing Services): This division supports the CompanyeIUs retail business by providing one-to-one customer relationship management system, and this in turn, will increase customer retention and ultimately improving ROI. Moreover, this division will launch Mobile Interactive Marketing Services with major cellular phone service companies in Korea such as, SK Telecom and KTF. This service not only assists the mobile carriers to enhance their customer base with interactive marketing tools, but also allows for merchants and retailers to utilize a huge database of these mobile carriers. CIC has the proprietary technology and solutions to be a perfect intermediary between these two groups, profiting on ASP service fees and profit sharing fees in some cases. This division is also equipped with a competent management team with strong industry background and marketing networks to penetrate this emerging service market. The company has a plan to replicate this business and service model in other international markets such as Japan, China and U.S. The company is already in discussion with some of the major global mobile carriers such as NTT Docomo, China Mobile, Verizon, etc. and starting to receive positive feedbacks. Besides IMMS (Interactive Mobile Marketing Service) business, this division also has other traditional direct marketing services such as CRM solutions, Data Mining services and other marketing promotion ASP services, versed in marketing tools such as mobile discount coupons. This division already has activated CIC retail brands to a full extent and is ready to move onto national and worldwide clients.

FORWARD-LOOKING STATEMENT: This press release contains forward-looking statements, including expected industry patterns and other financial and business results that involve known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance or achievements to differ materially from results expressed or implied by this press release. Such risk factors include, among others: the sustainability of recent growth rates in the market for childreneIUs fashion or the apparel industry, grow as anticipated; the positioning of CIC & Company products in the market; ability to integrate acquired companies and technology; ability to retain key employees; ability to successfully combine product offerings and customer acceptance of combined products; general market conditions, fluctuations in currency exchange rates, changes to operating systems and product strategy by vendors of operating systems; and whether CIC & Company can successfully develop new products and the degree to which these gain market acceptance. Actual results may differ materially from those contained in the forward-looking statements in this press release. Neither Sutter Holding nor CIC undertake any obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results.