NEW ORLEANS, LA -- (MARKET WIRE) -- 05/25/07 -- Kahn Gauthier Swick, LLC ("KGS") announces that shareholders of Sterling Financial Corporation ("Sterling" or the "Company") (NASDAQ: SLFI) who purchased shares of the Company between April 27, 2004 and May 25, 2007 have until July 24, 2007 to move for appointment as Lead Plaintiff in a securities fraud class action lawsuit currently pending in the United States District Court for the Southern District of New York. No class has yet been certified in this action.

UNTIL A CLASS IS CERTIFIED, YOU ARE NOT PERSONALLY REPRESENTED BY COUNSEL UNLESS YOU RETAIN AN ATTORNEY. SHAREHOLDERS MAY CONTACT KGS MANAGING PARTNER LEWIS KAHN DIRECTLY TOLL FREE 1-866-467-1400, EXT. 100, VIA CELL PHONE 504-301-7900, OR VIA EMAIL LEWIS.KAHN@KGSCOUNSEL.COM FOR MORE INFORMATION. KGS LAWYERS ARE AVAILABLE OVER THE HOLIDAY WEEKEND SHOULD INVESTORS NEED IMMEDIATE INFORMATION.

Sterling and certain of its officers and directors are charged with issuing a series of materially false and misleading statements in violation of Section 10(b) and 20(a) of the Securities Exchange Act and Rule 10b-5 promulgated thereunder.

Shares of Sterling fell over 40% today to an intraday low of $9.31, after the bank holding company announced an after tax charge of $145 to $165 million to the company's 2006 financial results related to a significant loan scheme by employees at its affiliate Equipment Finance LLC ("EFI"). Sterling announced that its own internal investigation revealed "evidence of a sophisticated loan scheme, orchestrated deliberately by certain EFI officers and employees over an extended period of time" to conceal credit delinquencies and falsify financing contracts. As a result, five EFI employees have been terminated, including the chief operating officer and executive vice president. Sterling had previously announced that it expected to be restating financial statements for the years 2004 through 2006.

If you are a Sterling shareholder who would like to discuss your legal rights, you may e-mail or call KGS, without obligation or cost to you. You may contact Managing Partner Lewis Kahn of KGS direct, toll free 1-866-467-1400, ext., 100, or by email at lewis.kahn@kgscounsel.com. KGS focuses its practice on securities fraud litigation, and the firm's lawyers have significant experience working on securities fraud cases that have resulted in significant recoveries for shareholders. For more information on KGS, please visit www.kgscounsel.com.

SPECIAL NOTICE: Because Courts generally appoint only one firm to prosecute a securities fraud action on behalf of the "lead plaintiffs," who serve to guide the litigation on behalf of the shareholders, it is critically important that interested parties carefully evaluate any other firm that may be competing with KGS to prosecute the Sterling class action. Critical components of a law firm's ability to successfully prosecute this action and obtain a strong recovery for you include its knowledge of applicable federal securities laws, the resources it will dedicate to prosecution of the case, including the number of lawyers the firm has available for the Sterling class action, AND especially the quality of the firm's work. Interested shareholders are encouraged to call for consultation and to request more information about KGS.

CONTACT:
Kahn Gauthier Swick, LLC
Lewis Kahn
Toll free 1-866-467-1400, Ext. 100
lewis.kahn@kgscounsel.com