Community Valley Bancorp Announces the Engagement of Cappello Capital Corp. to Raise Additional Capital

CHICO, Calif., July 6 /PRNewswire-FirstCall/ -- Community Valley Bancorp (OTC Bulletin Board: CVLL), the parent company of Butte Community Bank and Butte Community Insurance Agency, announced today that it has engaged Cappello Capital Corp. of Santa Monica, California to be its financial advisor in connection with its recapitalization.

"We are looking forward to working with the professionals at Cappello Capital to present Community Valley Bancorp's opportunities to potential investors," said John Coger, President and CEO of Community Valley Bancorp and Butte Community Bank.

Cappello Capital is an internationally recognized investment bank with an impressive track record in the arena of private equity investments in public companies. It has decades of successful transaction experience and a client base spanning the globe.

"While there can be no assurance of a successful transaction, we are convinced that the advice and assistance from Cappello Capital will provide us with the best platform for pursuing a successful recapitalization," commented Coger.

About Community Valley Bancorp

Community Valley Bancorp is the parent company of Butte Community Bank, a progressive Northern California bank that combines traditional deposit and lending services with innovative banking solutions, and Butte Community Insurance Agency, LLC, a full-service insurance agency offering all lines of coverage from auto and health to commercial and farm packages.

Founded in 1990, Butte Community Bank is California state-chartered with 14 branches in eleven cities including Anderson, Chico, Colusa, Corning, Magalia, Oroville, Paradise, Red Bluff, Redding, Yuba City and Marysville. Community Valley Bancorp has headquarters in Chico, California.

For more information, visit: www.communityvalleybancorp.com.

About Cappello Capital Corp.

With over 35 years of history, Cappello Capital Corp. is an internationally recognized firm providing clients with world-class investment banking advisory services in the fields of private placement of equity and debt, mergers and acquisitions, strategic advice and financial restructuring.  With transactional experience in over 50 countries, the principals of Cappello Capital Corp. and its affiliates have advised on transactions in excess of $100 billion of aggregate value.

Forward Looking Statement Disclosure

This news release contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Exchange Act of 1934, as amended and Community Valley Bancorp intends for such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995.  These forward-looking statements describe the Company's expectations regarding future events and developments and are subject to risks and uncertainties and include information about possible or assumed future results of operations. Many possible events or factors could affect the Company's future financial results and performance. This could cause results of performance to differ materially from those expressed in the Company's forward-looking statements. These statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions, which are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in, or implied by, such forward looking statements. All forward-looking statements are representative only on the date hereof.

SOURCE Community Valley Bancorp