Unions Appeal Decision

----City of Vallejo Press Release----

FOR IMMEDIATE RELEASE – SEPTEMBER 19, 2008

FOR MORE INFORMATION, CONTACT JOANN WEST, PUBLIC INFORMATION OFFICER (707) 651-7152

MOTION FOR LEAVE TO APPEAL FILED IN BANKRUPTCY CASE

Late yesterday, attorneys representing the Vallejo Police Officer’s Association, the International
Association of Fire Fighters and the International Brotherhood of Electrical Workers filed a
Motion for Leave to Appeal in the City of Vallejo chapter 9 bankruptcy case. The motion seeks
permission to appeal the Order for Relief entered on September 8, 2008 by Judge Michael
McManus.

The City of Vallejo is confident that the ruling that the City is eligible for chapter 9 relief is
correct and will be upheld on appeal. Judge McManus, a distinguished, independent bankruptcy
judge, found that the evidence of insolvency and good faith was overwhelming.
The City is dismayed that the appeal will cause both sides to incur even more legal fees. The
funds that the City will expend to fight the appeal would be better spent on salaries and other
General Fund obligations.

The unions’ filing in no way impacts the ongoing bankruptcy case. For example, the schedule
set by Judge McManus on September 8th with respect to the City’s motion to reject the
collective bargaining agreements will not change, and the hearing on that motion remains set for
December 2nd.

More information regarding the City of Vallejo bankruptcy can be found on the city website at
www.ci.vallejo.ca.us

----End of City of Vallejo Press Release----

This press release may also be found online here.

The Notice of Appeal is here in pdf.