With the information provided by the company (see links below), research and update this information as best you can using the following techniques: fair market valuation from actual market transactions, earnings value method, and price/book value method. You will need to research the market, the company, and the climate for market movements in this lightly traded company. With it should come your opinion for whether this is a good purchase or not. Is the shareholder selling getting the better deal?

-- r-' I Luxendnug Bancshares, hlC. Stock Analysis and Recent Financial Infonnation .Tune 30, 2011 Luxemburg Bancsbares, Inc. (the "Company"), a Wisconsin corporation, was f0D11ed June 10, 1983 for the purpose of owning a Wisconsin bank. On December 30, 1983, the Company acquired a controlling interest in the Bank of Luxemburg (the "Bank"). The Bank is a wholly-owned subsidiary of the Company. As of June 30, 2011, the Company had Consolidated Total Assets of$236.3 million and Total Shareholder's Equity of$22.5 million. as of 06-30-11 -------------------- $233.9 $236.3 $1,404,678 Income: 12-31-2010 ----------------- $227.4 Assets: ($ in millions) 12-31- 2009 ----------------- Company Financial Information: $1,818,520 $888,096 Shareholders Equity: ($ in millions) $20.5 $21.0 $22.5 Earnings Per Share: $2.67 $3.44 $ 1.68 Book Value Per Share: $38.97 $39.89 $42.70 Third Party Market Value Analysis: Since the Company's shares are not actively traded, the Board commissions Hopkins & Howard, CPA, an independent accounting finn, to conduct an aru1Ual valuation of the estimated fair market value of Luxemburg Bancshares, Inc. common stock. The fair market value analysis considers three different valuation methodologies, including the Earnings value method, the Price/Book value method and actual market transactions. As ofDecember 31, 2010, the fair market valuation of the Company stock, according to Hopkins & Howard, was $45.80 per share, a decrease of$0.95 per share from the $46.75 fair market value per share as of December 31,2009. This decrease was despite the fact that the Company income in 2010 increased to $1,818,520 from $1,404,678 in 2009. Two main factors were identified by Hopkins & Howard for the decline in fair market value: The Company earnings in 2010 were adjusted downward for the capital gain in the securities pOlifolio, and because ofthe increased availability of FDIC-assisted purchases of failed banks. The Company makes no representations or warranties regarding the accuracy of the fair market value estimates provided from time to time by Hopkins & Howard ofthe Company's share plice. 2006 Market Value Estimate Per Share: (From Hopkins & Howard) 2007 2008 2009 2010 $50.33 $50.64 $43.33 $46.75 $45.80 NASDAQ Bank Index (lXBK). The general interest in community bank stocks will have an impact on the value of Luxemburg Bancshares, Inc. stock. In an attempt to quantify historical banking industry trends, we have listed the NASDAQ Bank Index year end values below. The NASDAQ Bank Index is a measure of the performance of financial companies listed on the NASDAQ Stock Exchange, such as banks, savings institutions, and related holding companies that perfonn banking-related functions. The Index began in February 1971, with a base of$100.00 . 2006 NASDAQ Bank Index: $3,375 2007 2008 $2,37] $2,026 2009 2010 3-31-11 6-30-11 $1,713 $1,849 $1,826 $1,768 Stock Transactions: While Luxemburg Bancshares, Inc. stock is not actively traded on a national exchange, shares ofthe Company are often traded directly between individuals for a variety of reasons. No specific broker or brokerage company has an active interest in trading or making a market in Company shares nor does the Banle of Luxemburg or any afiliate make a market in these shares. Bank personnel may i'om time to time provide administrative assistance to individuals in the purchase or sale of Company stock. In the first half of 20 11, 4,238 shares of Company common stock were traded, and to the best of our lmowledge the trading range was between $43 .96 and $46.75. We are not always aware of all purchases or sales of Company stock or the prices at which the shares are traded, and there may be purchases or sales of Company stock outside of this range. In the past the company has had a list of shareholders seeking to purchase additional shares. Currently, the company has a list of shareholders who are seeking to sell shares. The share liquidity may have an effect on the market value of the shares. Financial Summary & Redemption Price: The Company's eamings for the first half of 20 11 totaled $888,096, which equates to annualized earnings of $1,776,192. The Book Value per share increased to $42.70, with Earnings per share of$1.68, as compared to a Book Value per share of$39.50 and Earnings per share of$1.22, as ofJtme 30, 2010. The Bank of Luxemburg's total assets as of June 30, 2011 were $235,342,488 . Net income for the Bank totaled $925,323, $235,013 over the same period ending June 30, 2010. Net interest income of$3,984,254 was $730,010 above the first half of 201 0. Non-interest income of $1,636,648 was $290,480 under the non-interest income for the same period 02010. Non-interest expenses of$4,395,868 were $13,989 higher than the expenses in the first half of2010. As a matter of policy, when the Company becomes aware of shareholders who desire to sell their shares, the Company first attempts to refer the shareholder to either another existing shareholder, or another individual the Company believes may be interested in purchasing shares of the Company's common stock. In the event the shareholder wishing to sell his shares is unable to find a third party to purchase the shares, such shareholder ("Selling Shareholder") may request the Company to purchase the Selling Shareholder's shares. The Company shall make reasonable attempts to purchase these shares, in accordance with its Repurchase Policy, capital requirements and applicable banking regulations. All shares repurchased by the Company under this Policy shall be purchased at a per share price determined by the Board to be the share's fair market value, less a discount percentage. The Board shall make a fair market value determination on at least a quarterly basis, which may be based on the receipt of an annual appraisal provided by an independent valuation firm, with quarterly adjustments for the changes in the market value for Bank stocks and changes in the Company's projected annual income. The Board has determined that the current repurchase price per share shall be $43 .20, which is 95% of an estimated fair market value range of$45.03 to $45.92 for the shares. 5eutCe:ntkp !?!Ja/?cj~aFej-, J /?c. ..... August 5, 2011 Dear Shareholder: Luxemburg Bancshares, Inc. faces many challenges from the economy and new regulations, and yet the Company continues to prosper. Total assets have grown from $233,160,089 in December, 2010 to $236,334.41 as of June 30, 2011. The net income as of June 30, 2011 totaled $888,096 or $1.68 per share, compared to net income of$653,939 in 2010 and $1.22 per share. A semi-annual dividend of $.51 was paid in June 2011. The Company would like to thank retired Directors, Ronald Ledvina and Lois Hoida for their years of service on the Board of Directors of the Bank: of Luxemburg and Luxemburg Bancshares, Inc. Ronald and Lois retired after the Annual Luxemburg Bancshares, Inc. Shareholder Meeting in May 2011 . The Company recognizes their valuable contributions to the organization. The Company would also like to welcome Susan Heim as the newest member of the Board of Directors. Susan Heim is President/Owner of Quali T, Inc. in Luxemburg. Generally, Luxemburg Bancshares, Inc. does not have a large number of shares available to interested investors. However, recently a larger Shareholder has indicated an interest in selling some ofms shares, therefore shares are now available. Included is updated financial information and a review of the Luxemburg Bancshares, Inc. stock estimated value. If you are interested in increasing your ownership in the Company, or have any questions, please contact Darice Bunker at 920-845-2345. I thank you for being a shareholder of Luxemburg Bancshares, Inc. 'ohn Statky r ~ President LUXEMBURG,WISCONSIN 542170440 PHONE:9208452345 " -- r-' I Luxendnug Bancshares, hlC. Stock Analysis and Recent Financial Infonnation .Tune 30, 2011 Luxemburg Bancsbares, Inc. (the "Company"), a Wisconsin corporation, was f0D11ed June 10, 1983 for the purpose of owning a Wisconsin bank. On December 30, 1983, the Company acquired a controlling interest in the Bank of Luxemburg (the "Bank"). The Bank is a wholly-owned subsidiary of the Company. As of June 30, 2011, the Company had Consolidated Total Assets of$236.3 million and Total Shareholder's Equity of$22.5 million. as of 06-30-11 -------------------- $233.9 $236.3 $1,404,678 Income: 12-31-2010 ----------------- $227.4 Assets: ($ in millions) 12-31- 2009 ----------------- Company Financial Information: $1,818,520 $888,096 Shareholders Equity: ($ in millions) $20.5 $21.0 $22.5 Earnings Per Share: $2.67 $3.44 $ 1.68 Book Value Per Share: $38.97 $39.89 $42.70 Third Party Market Value Analysis: Since the Company's shares are not actively traded, the Board commissions Hopkins & Howard, CPA, an independent accounting finn, to conduct an aru1Ual valuation of the estimated fair market value of Luxemburg Bancshares, Inc. common stock. The fair market value analysis considers three different valuation methodologies, including the Earnings value method, the Price/Book value method and actual market transactions. As ofDecember 31, 2010, the fair market valuation of the Company stock, according to Hopkins & Howard, was $45.80 per share, a decrease of$0.95 per share from the $46.75 fair market value per share as of December 31,2009. This decrease was despite the fact that the Company income in 2010 increased to $1,818,520 from $1,404,678 in 2009. Two main factors were identified by Hopkins & Howard for the decline in fair market value: The Company earnings in 2010 were adjusted downward for the capital gain in the securities pOlifolio, and because ofthe increased availability of FDIC-assisted purchases of failed banks. The Company makes no representations or warranties regarding the accuracy of the fair market value estimates provided from time to time by Hopkins & Howard ofthe Company's share plice. 2006 Market Value Estimate Per Share: (From Hopkins & Howard) 2007 2008 2009 2010 $50.33 $50.64 $43.33 $46.75 $45.80 NASDAQ Bank Index (lXBK). The general interest in community bank stocks will have an impact on the value of Luxemburg Bancshares, Inc. stock. In an attempt to quantify historical banking industry trends, we have listed the NASDAQ Bank Index year end values below. The NASDAQ Bank Index is a measure of the performance of financial companies listed on the NASDAQ Stock Exchange, such as banks, savings institutions, and related holding companies that perfonn banking-related functions. The Index began in February 1971, with a base of$100.00 . 2006 NASDAQ Bank Index: $3,375 2007 2008 $2,37] $2,026 2009 2010 3-31-11 6-30-11 $1,713 $1,849 $1,826 $1,768 Stock Transactions: While Luxemburg Bancshares, Inc. stock is not actively traded on a national exchange, shares ofthe Company are often traded directly between individuals for a variety of reasons. No specific broker or brokerage company has an active interest in trading or making a market in Company shares nor does the Banle of Luxemburg or any afiliate make a market in these shares. Bank personnel may i'om time to time provide administrative assistance to individuals in the purchase or sale of Company stock. In the first half of 20 11, 4,238 shares of Company common stock were traded, and to the best of our lmowledge the trading range was between $43 .96 and $46.75. We are not always aware of all purchases or sales of Company stock or the prices at which the shares are traded, and there may be purchases or sales of Company stock outside of this range. In the past the company has had a list of shareholders seeking to purchase additional shares. Currently, the company has a list of shareholders who are seeking to sell shares. The share liquidity may have an effect on the market value of the shares. Financial Summary & Redemption Price: The Company's eamings for the first half of 20 11 totaled $888,096, which equates to annualized earnings of $1,776,192. The Book Value per share increased to $42.70, with Earnings per share of$1.68, as compared to a Book Value per share of$39.50 and Earnings per share of$1.22, as ofJtme 30, 2010. The Bank of Luxemburg's total assets as of June 30, 2011 were $235,342,488 . Net income for the Bank totaled $925,323, $235,013 over the same period ending June 30, 2010. Net interest income of$3,984,254 was $730,010 above the first half of 201 0. Non-interest income of $1,636,648 was $290,480 under the non-interest income for the same period 02010. Non-interest expenses of$4,395,868 were $13,989 higher than the expenses in the first half of2010. As a matter of policy, when the Company becomes aware of shareholders who desire to sell their shares, the Company first attempts to refer the shareholder to either another existing shareholder, or another individual the Company believes may be interested in purchasing shares of the Company's common stock. In the event the shareholder wishing to sell his shares is unable to find a third party to purchase the shares, such shareholder ("Selling Shareholder") may request the Company to purchase the Selling Shareholder's shares. The Company shall make reasonable attempts to purchase these shares, in accordance with its Repurchase Policy, capital requirements and applicable banking regulations. All shares repurchased by the Company under this Policy shall be purchased at a per share price determined by the Board to be the share's fair market value, less a discount percentage. The Board shall make a fair market value determination on at least a quarterly basis, which may be based on the receipt of an annual appraisal provided by an independent valuation firm, with quarterly adjustments for the changes in the market value for Bank stocks and changes in the Company's projected annual income. The Board has determined that the current repurchase price per share shall be $43 .20, which is 95% of an estimated fair market value range of$45.03 to $45.92 for the shares. 5eutCe:ntkp !?!Ja/?cj~aFej-, J /?c. ..... August 5, 2011 Dear Shareholder: Luxemburg Bancshares, Inc. faces many challenges from the economy and new regulations, and yet the Company continues to prosper. Total assets have grown from $233,160,089 in December, 2010 to $236,334.41 as of June 30, 2011. The net income as of June 30, 2011 totaled $888,096 or $1.68 per share, compared to net income of$653,939 in 2010 and $1.22 per share. A semi-annual dividend of $.51 was paid in June 2011. The Company would like to thank retired Directors, Ronald Ledvina and Lois Hoida for their years of service on the Board of Directors of the Bank: of Luxemburg and Luxemburg Bancshares, Inc. Ronald and Lois retired after the Annual Luxemburg Bancshares, Inc. Shareholder Meeting in May 2011 . The Company recognizes their valuable contributions to the organization. The Company would also like to welcome Susan Heim as the newest member of the Board of Directors. Susan Heim is President/Owner of Quali T, Inc. in Luxemburg. Generally, Luxemburg Bancshares, Inc. does not have a large number of shares available to interested investors. However, recently a larger Shareholder has indicated an interest in selling some ofms shares, therefore shares are now available. Included is updated financial information and a review of the Luxemburg Bancshares, Inc. stock estimated value. If you are interested in increasing your ownership in the Company, or have any questions, please contact Darice Bunker at 920-845-2345. I thank you for being a shareholder of Luxemburg Bancshares, Inc. 'ohn Statky r ~ President LUXEMBURG,WISCONSIN 542170440 PHONE:9208452345 "