In the nation, Butte Community Bank had the fourth largest number ofguaranteed loans and the fifth largest dollar amount. Administrative VicePresident Glenn Rilinger and his staff at the government lending division ofButte Community Bank originated 19 loans totaling over $38.1 million.

Butte Community Bank participated in the B&I Guaranteed Loan programthrough USDA Rural Development which guarantees up to 80% of the loan made bya commercial lender for qualified businesses in eligible rural areas. Theprimary purpose of the B&I program is to stimulate the local economy, createadditional employment, attract additional commercial investment capital andsupport potential growth in tax revenue, which will improve the quality oflife for rural residents.

The B&I program is a useful tool to Butte Community Bank because itexpands their lending capabilities to include a wider range of rural businessprojects. Loan proceeds may be used for working capital, equipment, buildings,real estate and certain types of debt financing. All rural areas are eligible,excluding cities of more than 50,000 population and their adjacent urbanizedareas.

In addition to being a top Business and Industry Lender, Butte CommunityBank is also certified by the Small Business Administration as a PreferredLender, which means they have the authority to underwrite and approve SBAloans locally.

About Community Valley Bancorp

Community Valley Bancorp (Nasdaq: CVLL) is the parent company of ButteCommunity Bank, a progressive Northern California bank that combinestraditional deposit and lending services with innovative banking solutions,and Butte Community Insurance Agency, LLC, a full-service insurance agencyoffering all lines of coverage from auto and health to commercial and farmpackages.

Founded in 1990, Butte Community Bank is California state-chartered with15 branches in eleven cities including Anderson, Chico, Colusa, Corning,Magalia, Oroville, Paradise, Red Bluff, Redding, Yuba City and Marysville. Italso operates loan production offices in Citrus Heights and Gridley. CommunityValley Bancorp has headquarters in Chico, California.

For more information visit: http://www.communityvalleybancorp.com

Forward Looking Statement Disclosure

This news release contains certain forward-looking statements within themeaning of Section 27A of the Securities Act of 1933, as amended, and Section21E of the Exchange Act of 1934, as amended and Community Valley Bancorpintends for such forward-looking statements to be covered by the safe harborprovisions for forward-looking statements contained in the Private SecuritiesLitigation Reform Act of 1995. These forward-looking statements describe theCompany's expectations regarding future events and developments and aresubject to risks and uncertainties and include information about possible orassumed future results of operations. Many possible events or factors couldaffect the Company's future financial results and performance. This couldcause results of performance to differ materially from those expressed in theCompany's forward-looking statements. These statements are not guarantees offuture performance and involve certain risks, uncertainties and assumptions,which are difficult to predict. Therefore, actual outcomes and results maydiffer materially from what is expressed or forecasted in, or implied by, suchforward-looking statements. All forward-looking statements are representativeonly on the date hereof.

SOURCE Community Valley Bancorp