**FOR
      IMMEDIATE RELEASE**




**CONTACT:**          Roy
      Estridge. EVP/CFO




Valley
      Commerce Bancorp




(559)
      622-9000







**VALLEY
      COMMERCE BANCORP REPORTS**


**EARNINGS
      FOR SECOND QUARTER OF 2007**




VISALIA,
      Calif., July 26, 2007/ -- Valley Commerce Bancorp (OTCBB: VCBP), a bank holding
      company and the parent company of Valley Business Bank, today announced
      unaudited consolidated net income of $671,000, or $.28 per diluted share, for
      the quarter ended June 30, 2007, compared to $665,000 or $.27 per diluted share
      for the same period of 2006, representing a 4% improvement in diluted earnings
      per share.




For
      the
      six months ended June 30, 2007 the Company’s consolidated net income totaled
      $1,264,000 or $.52 per diluted share, compared to $1,393,000 or $.57 per diluted
      share achieved in the comparable 2006 period.  The annualized returns
      on average assets for the six month periods ended June 30, 2007 and 2006 were
      .98% and 1.22%, respectively, while the annualized returns on average equity
      were 9.77% and 12.42%, respectively.




“Our
      second quarter results indicate that our continued growth in earning assets
      over
      the past year has begun to more fully offset the decline in net interest income
      that resulted from the compression of our net interest margin over the same
      period of time,” stated Don Gilles, President and Chief Executive Officer of
      Valley Commerce Bancorp and Valley Business Bank.  He added, “To
      combat the rising cost of funds evident throughout the industry, we are pushing
      hard to complete the growth and profitability initiatives that were implemented
      earlier this year.  We are confident that upon completion, these
      initiatives will enhance long-term franchise and shareholder
      value.”




Comparing
      account totals at June 30, 2007 to account totals at June 30, 2006, total assets
      increased by $25 million or 11% to $267 million, while net loans increased
      by
      $32 million or 20% to $195 million and total deposits increased by $19 million
      or 10% to $214 million.









Comparing
      account totals at June 30, 2007 to account totals at December 31, 2006, total
      assets increased by $4 million or 1%, while net loans increased by $13 million
      or 7%, and total deposits increased by $6 million or 3%.  Total
      deposits at June 30, 2007 and December 31, 2006 include $10 million of brokered
      time deposits that were acquired in December 2006.




Average
      total assets for the six months ended June 30, 2007 were $261 million compared
      to $230 million for the same period in 2006, an increase of $31 million or
      14%.  Average total loans for the six months ended June 30, 2007 were
      $189 million compared to $154 million for the same period in 2006, an increase
      of $35 million or 23%.  Average deposits for the six months ended June
      30, 2007 were $209 million compared to $191 million for the same period in
      2006,
      an increase of $18 million or 9%.  Excluding $10 million of brokered
      time deposits acquired in December 2006, deposit growth has been relatively
      flat
      due to the economic and competitive environment.  The Company has
      accordingly utilized brokered time deposits and short-term Federal Home Loan
      Bank borrowings along with internal resources to fund loan growth and maintain
      liquidity.




Net
      interest income for the three- and six-month periods ended June 30, 2007 was
      $2.8 million and $5.5 million, respectively, compared to $2.8 million and $5.6
      million for the comparable 2006 periods.  Although net interest income
      changed very little for the six-month periods ended June 30, 2007 and 2006,
      there was significant change in the components of net interest
      income.  Due primarily to asset growth, interest revenue in the 2007
      period was $4.6 million compared to $4.0 million in the 2006 period, a 15%
      increase.  Interest expense in the 2007 period was $1.9 million
      compared to $1.2 million in the 2006 period, a 58% increase.  This
      reflected the fact that funding costs for both local deposits and wholesale
      funding sources increased significantly due to competitive factors even after
      the series of Fed-related rate increases was halted in mid-2006.  The
      Company’s net interest income was also impacted by a decrease in the average
      volume of non-interest bearing deposits which primarily migrated into
      interest-bearing deposit categories.  The average volume of demand
      deposit accounts for the 2007 period was $59 million, an $8 million or 12%
      decrease from the 2006 period.









The
      Company’s net interest margin on a fully tax equivalent basis for the second
      quarter of 2007 was 4.64% compared to 5.43% for the second quarter of
      2006.  On a year to date basis, the Company’s net interest margin on a
      fully tax equivalent basis was 4.69% for the 2007 period compared to 5.46%
      for
      the 2006 period.  The reduction in net interest margin in the 2007
      periods was the result of rising funding costs as discussed above.




The
      allowance for loan losses is evaluated prior to the end of each quarter and
      represents management’s estimate of the current amount of potential losses
      inherent in the loan portfolio given the facts and circumstances that exist
      as
      of the evaluation date.  The allowance for loan losses totaled $1.75
      million or 0.89% of total loans at June 30, 2007 compared to $1.75 million
      or
      1.06% of total loans at June 30, 2006.  No loan loss provision was
      recorded during either the 2007 or 2006 periods.  The Company recorded
      a $6,000 loan recovery and no loan charge-offs during the six months ended
      June
      30, 2007, and recorded net charge-offs totaling $21,000 during the same period
      of 2006.




The
      Company had no non-performing assets at either June 30, 2007 or June 30,
      2006.




Non-interest
      income earned during the six months ended June 30, 2007 totaled $573,000, an
      increase of $165,000 or 40% compared to the $408,000 earned during the six
      months ended June 30, 2006.  The change was primarily attributable to
      $73,000 of earnings on bank-owned life insurance assets acquired during the
      latter part of 2006.  The Company’s non-interest income also increased
      in the categories of service charges on deposits, fees from mortgage loan
      underwriting, and Federal Home Loan Bank dividend income.




Non-interest
      expense was $4.2 million in the first half of 2007 compared to $3.8 million
      in
      the first half of 2006, an increase of $388,000 or 10%. The increase was due
      primarily to increased employee costs associated with the Company’s
      growth.  Salaries and benefits for the 2007 period totaled $2.4
      million compared to $2.1 million for the 2006 period, a $285,000 or 13%
      increase.









Valley
      Commerce Bancorp had 2,328,191 shares of common stock outstanding at June 30,
      2007.  The book value per share was $11.31 at June 30, 2007, compared
      to $9.91 at June 30, 2006.  The increase in book value per share from
      the prior year is primarily attributable to the retention of earnings during
      the
      12-month period ending June 30, 2007.  All per share data discussed
      above has been adjusted for the 5% stock dividend declared in May
      2007.




*OTHER
      INFORMATION:  Valley Commerce Bancorp stock trades on NASDAQ’s Over
      The Counter Bulletin Board under the symbol VCBP.  Valley Business
      Bank, the wholly owned subsidiary of Valley Commerce Bancorp, is a commercial
      bank that commenced operations in 1996 under the name Bank of Visalia. Valley
      Business Bank operates through Business Banking Centers in Visalia and Fresno
      and has branch offices in Woodlake and Tipton.  The Bank also operates
      a loan production office in Tulare.  Additional information about
      Valley Business Bank is available from the Bank’s website at
http://www.valleybusinessbank.net.*




*FORWARD-LOOKING
      STATEMENTS:  In addition to historical information, this release
      includes forward-looking statements, which reflect management's current
      expectations for Valley Commerce Bancorp’s future financial results, business
      prospects and business developments.  Management's expectations for
      Valley Commerce Bancorp's future necessarily involve assumptions, estimates
      and
      the evaluation of risks and uncertainties. Various factors could cause actual
      events or results to differ materially from those expectations.  The
      forward-looking statements contained herein represent management's expectations
      as of the date of this release. Valley Commerce Bancorp undertakes no obligation
      to release publicly the results of any revisions to the forward-looking
      statements included herein to reflect events or circumstances after today,
      or to
      reflect the occurrence of unanticipated events.  For those statements,
      the Company claims the protection of the safe harbor for forward-looking
      statements contained in the Private Securities Litigation Reform Act of
      1995.*










































**Condensed
                Consolidated**
              **Balance
                Sheet**
              (In
                thousands) (Unaudited)
            
            **As
                of June 30,**
            
            
            **As
                of December 31,****2007**
            
            
            **2006**
            
            
            **2006**
            
            
            **2005****Assets**Cash
                and Due from Banks
            
            $
            8,196
            
            
            $
            12,994
            
            
            $
            13,266
            
            
            $
            17,733Federal
                Funds Sold
            
            
            -
            
            
            
            2,030
            
            
            
            -
            
            
            
            1,885Available-for-Sale
                Investment Securities
            
            
            51,153
            
            
            
            55,565
            
            
            
            55,298
            
            
            
            50,391Loans
                (net)
            
            
            194,986
            
            
            
            162,487
            
            
            
            182,331
            
            
            
            149,991Bank
                Premises and Equipment (net)
            
            
            2,024
            
            
            
            1,220
            
            
            
            1,832
            
            
            
            1,223Cash
                Surrender Value of Bank Owned Life Insurance
            
            
            6,058
            
            
            
            2,835
            
            
            
            5,935
            
            
            
            2,781Other
                Assets
            
            
            4,834
            
            
            
            4,658
            
            
            
            5,003
            
            
            
            4,007TOTAL
                ASSETS
            
            $
            267,251
            
            
            $
            241,789
            
            
            $
            263,665
            
            
            $
            228,011**Liabilities
                & Equity**Non-Interest
                Bearing Deposits
            
            $
            58,708
            
            
            $
            66,386
            
            
            $
            63,020
            
            
            $
            75,419Interest
                Bearing Deposits
            
            
            82,504
            
            
            
            75,344
            
            
            
            75,293
            
            
            
            63,549Time
                Deposits
            
            
            72,613
            
            
            
            53,190
            
            
            
            69,263
            
            
            
            53,613Total
                Deposits
            
            
            213,825
            
            
            
            194,920
            
            
            
            207,576
            
            
            
            192,581Short-Term
                Debt
            
            
            14,053
            
            
            
            10,000
            
            
            
            17,600
            
            
            
            -Long-Term
                Debt
            
            
            8,248
            
            
            
            8,845
            
            
            
            8,548
            
            
            
            9,140Junior
                Subordinated Deferrable Interest Debentures
            
            
            3,093
            
            
            
            3,093
            
            
            
            3,093
            
            
            
            3,093Other
                Liabilities
            
            
            1,701
            
            
            
            2,125
            
            
            
            1,400
            
            
            
            1,288Total
                Liabilities
            
            
            240,920
            
            
            
            218,983
            
            
            
            238,217
            
            
            
            206,102Shareholders’
                Equity
            
            
            26,331
            
            
            
            22,806
            
            
            
            25,448
            
            
            
            21,909TOTAL
                LIABILITIES & EQUITY
            
            $
            267,251
            
            
            $
            241,789
            
            
            $
            263,665
            
            
            $
            228,011





**Condensed
                Consolidated**
              **Statement
                of Income**
              (In
                thousands except share data) (Unaudited)
            
            **Three
                Months Ended June 30,**
            
            
            **Six
                Months Ended June 30,****2007**
            
            
            **2006**
            
            
            **2007**
            
            
            **2006**Interest
                Income
            
            $
            4,616
            
            
            $
            3,978
            
            
            $
            9,073
            
            
            $
            7,780Interest
                Expense
            
            
            1,856
            
            
            
            1,183
            
            
            
            3,620
            
            
            
            2,218NET
              INTEREST INCOME
            
            
            2,760
            
            
            
            2,795
            
            
            
            5,453
            
            
            
            5,562Provision for Loan Losses
            
            
            -
            
            
            
            -
            
            
            
            -
            
            
            
            -NET
                INTEREST INCOME AFTER
              PROVISION
                FOR LOAN LOSSES
            
            
            2,760
            
            
            
            2,795
            
            
            
            5,453
            
            
            
            5,562Non-interest
                Income
            
            
            282
            
            
            
            184
            
            
            
            573
            
            
            
            408Non-interest
                Expenses
            
            
            2,113
            
            
            
            1,952
            
            
            
            4,225
            
            
            
            3,837INCOME
                BEFORE INCOME TAXES
            
            
            929
            
            
            
            1,027
            
            
            
            1,801
            
            
            
            2,133Income
                Taxes
            
            
            258
            
            
            
            362
            
            
            
            537
            
            
            
            740NET
                INCOME
            
            $
            671
            
            
            $
            665
            
            
            $
            1,264
            
            
            $
            1,393EARNINGS
                PER SHARE - BASIC*
            
            $
            0.29
            
            
            $
            0.29
            
            
            $
            0.54
            
            
            $
            0.61EARNINGS
                PER SHARE – DILUTED*
            
            $
            0.28
            
            
            $
            0.27
            
            
            $
            0.52
            
            
            $
            0.57SHARES
                OUTSTANDING – END OF PERIOD*
            
            
            2,328,191
            
            
            
            2,301,296
            
            
            
            2,328,191
            
            
            
            2,301,296*All
                share and earnings per share data have been restated for a 5% stock
                dividend declared in May 2007.