Valley Ridge Financial Corp. and ChoiceOne Financial Services, Inc. to Combine in a Merger of Equals

On April 26, 2006 Valley Ridge Financial Corp. ("Valley Ridge") and ChoiceOne Financial Services, Inc. (COFS) announced that they signed a definitive agreement to join forces in a merger of equals transaction.

Valley Ridge shareholders would receive 8.5 shares of COFS common stock for each share of Valley Ridge common stock outstanding. In addition, prior to closing this transaction, Valley Ridge is expected to declare a special one-time cash dividend to its shareholders totaling $10 million, or approximately $53.60 per share on a fully diluted basis. Adjusted for the special dividend, price to book value at announcement was 2.31x. The combined company is expected to have a market capitalization of approximately $60.0 million based on ChoiceOne's closing stock price of $18.25 on April 25, 2006.

Upon completion of this transaction, the combined organization will have 14 banking offices, with total assets projected to be approximately $480 million and total deposits projected to be approximately $380 million. The pro forma company will be the sixth largest Michigan-based depository in the Grand Rapids market area.

The merger is subject to approval by Valley Ridge's shareholders, approval by banking regulators, and other customary conditions. It is expected to be completed during the fourth quarter of 2006.