B. Riley Is Acting As Financial Advisor for Saehan Bancorp (SAEB)

Saehan Bancorp Signs Memorandum of Understanding with Hana Financial Group for Strategic Investment

Business Wire -- LOS ANGELES

Saehan Bancorp (OTCBB:SAEB) announced it has signed a Memorandum of Understanding with Hana Financial Group, based in Seoul, South Korea, for the sale of newly issued shares of common stock and a 51 percent ownership position on a fully diluted basis upon its proposed completion.

The transaction is subject to appropriate U.S. and Korean regulatory approvals, the execution of a stock purchase agreement and related due diligence.

“The proposed transaction will enable Saehan to further strengthen its financial position and provide the Korean American community with diversified financial products and services available through our strategic partnership with Hana Financial,” said Dong Soo Han, chairman of Saehan Bancorp.

Han noted that the proposed relationship with Hana Financial will enhance Saehan’s focus on upgrading its risk management systems, such as credit scoring systems, as well as support private banking and relationship manager programs. “We anticipate that the partnership will contribute to further corporate social responsibility activities in the U.S., such as the establishment of a foundation and financial education programs for second and third generation Korean Americans,” Han said. He highlighted Hana Financial’s successful financial executive program established in 2006 with Jilin University and Bank of Jilin in China.

“Our proposed investment in Saehan complements a focus on expanding our organization’s global presence, particularly within the U.S. banking community, and participating in the consolidation of financial institutions in this important market,” said Seung Yu Kim, chairman of Hana Financial Group.

Kim noted that Hana Financial Group recently completed the acquisition of Korean Exchange Bank, which, prior to a divestiture in 2004 of Pacific Union Bank, operated in the U.S. market. “Our proposed investment in Saehan will allow Hana Financial to regain a presence in the U.S. and leverage extensive overseas networks to create new business opportunities through Korean Exchange Bank’s business networks in 22 countries across the world,” Kim said.

He noted that Hana Financial has been particularly successful in leveraging global business opportunities in Asia through its subsidiaries in China and Indonesia, and is fully committed to playing a major role in providing diversified financial services to Korea–U.S. trade business – supported by the Korea-U.S. Foreign Trade Act that will take effect in March.

About Saehan Bancorp

Saehan Bancorp is a bank holding company with headquarters in Los Angeles, California. Its wholly owned subsidiary, Saehan Bank, offers a comprehensive range of financial solutions to meet the needs of multi-ethnic communities in the U.S. Saehan Bancorp is committed to satisfying customers and creating shareholder value. Its ten retail branch offices, International Department, and SBA Department of Saehan Bank focus on fulfilling these commitments to customers and shareholders.

Contact:

Saehan Bancorp
Daniel Kim, 213-388-5550
Executive Vice President and Chief Financial Officer

or

Hana Financial Group
Yung Ryul (Mike) Ko, 82-2-3709-6387