Temecula Valley Bancorp Inc. (NASDAQ:TMCV), the parent of Temecula Valley Bank, is recognized by Sandler O'Neill & Partners, L.P. as a top-performing small-cap company receiving their prestigious "Sm-All Stars" ranking. This recognition places Temecula Valley Bancorp among the top six percent of all financial institutions evaluated for the Sm-All Stars -- Class of 2006.

To achieve the Sm-All Star level, financial institutions had to perform at or above their peer median on financial metrics which focused on growth, profitability, credit quality, and capital strength. According to Sandler O'Neill, "the primary objective of the Sm-All Stars is to create a subset of the 573 publicly traded banks and thrifts under $2 billion in market cap that identifies what we believe to be the top-performing small-cap banks and thrifts in the nation. The performance metrics of the Sm-All Stars are outstanding, with the Class of 2006 delivering more than two times the level of loan, deposit, and earnings growth of the industry over the past twelve months while simultaneously maintaining pristine credit quality and a return on equity that ranks in the top quartile for the industry."

"It is particularly gratifying to be recognized by an independent firm and judged a top performer among our peers. Our strong performance is directly attributable to our talented and experienced staff, our solid customer relationships, and remaining focused on our strategy of pursuing quality commercial, construction and SBA lending which provides some of the highest yields in the industry," said Stephen H. Wacknitz, President/CEO/Chairman of the Board.

Temecula Valley Bank was established in 1996 and operates full service offices in Temecula, Murrieta, Corona, Fallbrook, Escondido, Rancho Bernardo, Carlsbad and El Cajon. Temecula Valley Bancorp was established in June 2002 and operates as a bank holding company for the Bank. As a Preferred Lender (PLP) since 1998, the locally owned and operated bank also has multiple SBA loan production offices across the United States. The Bank's website is at www.temvalbank.com.

Statements concerning future performance, developments or events concerning expectations for growth and market forecasts, and any other guidance on future periods, constitute forward-looking statements that are subject to a number of risks and uncertainties. Actual results may differ materially from stated expectations. Specific factors include, but are not limited to, the effect of interest rate changes, the ability to control costs and expenses, the impact of consolidation in the banking industry, financial policies of the United States government, and general economic conditions. Additional information on these and other factors that could affect financial results are included in Temecula Valley Bancorp's Securities and Exchange Commission filings which can be accessed at www.sec.gov.