SUN VALLEY, Calif., April 7, 2008 /PRNewswire-FirstCall/ -- Mission Valley Bancorp (OTC:MVLY) (BULLETIN BOARD: MVLY) , the parent company of Mission Valley Bank, announced record net income for 2007 of $1,366,000 (after provision for income taxes). This is an increase of 49%, or $449,000, from $917,000 achieved at year-end 2006. "We are very pleased with the Company's financial performance during 2007, particularly in light of the economic conditions our industry has been facing," said Tamara Gurney, President and CEO of both the Bank and the Bancorp. "The Company's performance is particularly noteworthy given the significant investment made during the year in both technology and facilities," Gurney continued. Mission Valley Bank upgraded its entire local and wide area networks, computer, security and telecommunications systems during the year. In addition, two new locations became operational, including a facility to house the Bank's back office operations and loan servicing units and a new branch office located in the Centre Pointe area of Santa Clarita. These decisions, made prior to entering 2007 and the economic downturn that followed, caused significant increases in the Bank's non-interest expenses. "The Board of Directors and Management are committed to the long-term growth of the Bank and strongly believe these decisions will pay dividends in the future by allowing us to grow efficiently and take advantage of opportunities in the future regardless of economic conditions," stated Gurney. Gurney noted that the Bank has grown 'the old fashioned way,' through hard work and a dedication to providing an unmatched level of personal service through developing creative solutions to client's financials needs. "We are fortunate that Mission Valley Bank's core value of 'Relationship Banking' has helped to insulate the Bank from much of the turmoil being experienced throughout our industry. We do not participate in primary residential mortgage financing nor have we invested in any 'sub-prime' products. As a 'relationship bank,' we lend within the communities we serve, to people and businesses we know and understand," Gurney acknowledged. The Bank continues to meet the regulatory guidelines as a well capitalized financial institution and its asset quality is strong with minimal delinquencies as compared to the industry overall. Ms. Gurney continued, "The current turmoil in the industry caused in large part by the sub prime meltdown has caused precipitous declines in the value of bank stocks across the board. We believe our stock remains a good value, particularly given the fact that the Company has declared four stock splits (25%, 50%, 20% and 25%) over the past five years. As a result, those investors who purchased stock in the initial or secondary offering have realized a significant return on their initial investment." The Bank's total deposits increased 9% to $151 million from the $139 million reported at December 31, 2006, while net loans grew more than 19%, reaching $166 million over the $139 million reported for the same period last year. Total assets surpassed the $200 million mark during the final quarter, reaching almost $205 million by year-end, representing an increase of more than 15% from December 2006. Mission Valley Bank is a full-service, independent, commercial bank specializing in serving small and middle market businesses in the San Fernando & Santa Clarita Valleys. The Bank was chartered in July 2001, with a vision of local ownership and a commitment to providing financial solutions to meet the needs of its clients. http://www.missionvalleybank.com/ Forward-looking statements: Certain matters discussed in this news release constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based upon current management expectations and, therefore, are subject to certain risks and uncertainties that could cause actual results, performance, or achievements to differ materially from those expressed, suggested, or implied by the forward-looking statements. Forward-looking statements are effective only as of the date that they are made and Mission Valley Bank assumes no obligation to update this information. DATASOURCE: Mission Valley Bancorp CONTACT: Tamara Gurney, CEO of Mission Valley Bancorp, +1-818-394-2300 Web site: http://www.missionvalleybank.com/

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