Sussex Bancorp, parent company of Sussex Bank, has notified that it has received preliminary nod from the US Department of Treasury (Treasury) to sell $9,989,000 in preferred stock to Treasury under the Treasury's Capital Purchase Program.

Under the transaction, the Company will issue warrants to Treasury to acquire approximately 279,543 shares of common stock of the Company.

An official stated that the exercise price of the warrant will be $5.27, based on the average closing price of the Company's stock for the 20 trading days ending December 8, 2008.