North Valley Bank Corrects Media Report

REDDING, CA--(Marketwire - January 8, 2010) - North Valley Bancorp (NASDAQ: NOVB). North Valley Bank, a subsidiary of North Valley Bancorp, reported: Today there was an erroneous statement in the media that North Valley Bank's lending functions have been restricted as a result of an Agreement with the Federal Reserve Bank. That statement is in error. The Bank's normal lending functions have not been curtailed as a result of the Agreement. The Bank is continuing to lend to customers as usual. Customers of the Bank should be reassured that all of the Bank's normal banking functions are in place. The Bank has requested that the media correct its erroneous reporting. Mike Cushman, President and CEO of North Valley Bank, expresses his concern for those customers that received this erroneous report and wants to reassure them that the Bank is prepared to continue to bank them as it has done in the past and provide the excellent services and support that they have experienced and come to expect from North Valley Bank.

Cautionary Statement: This release contains certain forward-looking statements that are subject to risks and uncertainties that could cause actual results to differ materially from those stated herein. Management's assumptions and projections are based on their anticipation of future events and actual performance may differ materially from those projected. Risks and uncertainties which could impact future financial performance include, among others, (a) competitive pressures in the banking industry; (b) changes in the interest rate environment; (c) general economic conditions, either nationally, regionally or locally, including fluctuations in real estate values; (d) changes in the regulatory environment; (e) changes in business conditions or the securities markets and inflation; (f) possible shortages of gas and electricity at utility companies operating in the State of California, and (g) the effects of terrorism, including the events of September 11, 2001, and thereafter, and the conduct of the war on terrorism by the United States and its allies. Therefore, the information set forth herein, together with other information contained in the periodic reports filed by the Company with the Securities and Exchange Commission, should be carefully considered when evaluating the business prospects of the Company. North Valley Bancorp undertakes no obligation to update any forward-looking statements contained in this release, except as required by law.

Contact Information: For further information contact: Michael J. Cushman President & Chief Executive Officer (530) 226-2900 Fax: (530) 221-4877 Kevin R. Watson EVP & Chief Financial Officer (530) 226-2900 Fax: (530) 221-4877