Valley Financial Corp (VYFC) SEC Filing 10-K Annual report for the fiscal year ending Monday, December 31, 2007

EXHIBIT 99

FOR RELEASE 4:00 p.m. February 1, 2008

VALLEY FINANCIAL CORPORATION

36 Church Avenue, S.W.

Roanoke, Virginia 24011

For Further Information Contact:

Ellis L. Gutshall, President and Chief Executive Officer

Kimberly B. Snyder, Executive Vice President and Chief Financial Officer

(540) 342-2265

VALLEY FINANCIAL CORPORATION ANNOUNCES

INCREASE IN EARNINGS FOR 4^TH QUARTER AND FOR THE YEAR

ROANOKE, VIRGINIA. February 1, 2008 — Roanoke-based Valley Financial Corporation (NASDAQ Capital Market-VYFC) announced today its consolidated financial results for 2007 and reported that the Company has successfully resolved all three of its previously disclosed problem loan assets subsequent to the end of the year.

For the three months ended December 31, 2007, Valley Financial reported net income of $925,000 compared with $156,000 for the same three months of 2006, a 493% increase. Diluted earnings per share increased to $0.20 for the quarter ended December 31, 2007, in comparison to $0.04 for the same quarter last year, a 400% increase. Earnings per share growth for the fourth quarter would have been in step with earnings growth except for the additional 409,884 shares issued as a result of the private placement offering completed in September and October of 2007. Return on average total assets was 0.62% for the quarter and return on average shareholders’ equity was 9.06% compared with 0.12% and 1.92% respectively, for the same period in 2006. The provision for loan losses was ($74,000) for the quarter ended December 31, 2007, as compared to $1,703,000 for the same period of 2006.

Ellis L. Gutshall, President and Chief Executive Officer of Valley Financial, stated “Due to the successful resolution of all three of our large problem loan relationships, we were able to reduce the specific reserves previously set aside for these credits by over $500,000, which was the contributing factor to the negative loan loss provision in the fourth quarter of 2007. Additionally, we took active and prudent steps by charging off $423,000 in problem loan assets during the fourth quarter. We believe these events, combined with the $4.2 Million equity capital raised in the private placement offering in the fall of last year, will