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In the merger, MSB shareholders will receive $54.67 for each share of MSB common stock. In addition, prior to closing this transaction, MSB will declare a special one-time cash dividend to its shareholders which may total as much as $7.325 million. The amount of the special dividend may be lower under certain conditions. If the special dividend were the full $7.325 million, the total value of the transaction to MSB shareholders would be $17.575 million, or approximately $93.73 for each MSB share.

Community Bancorp is a bank holding company headquartered in St. Charles, Michigan with total assets of approximately $136.4 million, total deposits of approximately $119.2 million, and total shareholders' equity of approximately $16.1 million as of December 31, 2006. Community Bancorp's subsidiary, Community State Bank, operates four branch-banking offices in Saginaw County, Michigan.

MSB is a bank holding company headquartered in Montrose, Michigan. MSB had total assets of approximately $60.2 million, total deposits of approximately $47.4 million, and total shareholders' equity of approximately $11.7 million as of December 31, 2006. MSB's bank subsidiary, Montrose State Bank, provides banking services through four offices located in Genessee, Saginaw and Shiawassee Counties in Michigan, adjacent to Community State Bank's market area.

Robert M. Wolak, President and CEO of Community, stated, "Montrose State Bank has a strong banking franchise with good prospects. This affiliation will combine natural markets, provide both Community State Bank's and Montrose State Bank's customers better access to banking services, and allow us to better serve the customers of both banks in our combined market. We believe that this merger will also provide growth opportunities for our employees and our shareholders."

According to John C. Wendling, President and CEO of MSB, "The merger with Community Bancorp will offer our customers a greater variety of banking products and financial services and access to more bank offices. Community is a strong company with a history of dedication to community banking. This merger will permit our customers to continue to receive the personal service that the Montrose State Bank's customers have enjoyed in the past."

The merger is subject to approval by MSB shareholders, approval by banking regulators, and other conditions. It is expected to be completed during the fourth quarter of this year.