Freedom Bank of Virginia Stakes Its Flag in Small Business Marketplace: Ready to Seize Opportunity Resulting from Mergers.

FAIRFAX, Va. -- The Freedom Bank of Virginia (Bulletin Board:FDVA.OB) announced today that it has successfully completed its action plan to empower the Bank to become a leading Northern Virginia community bank serving small businesses in our region.

In July 2006, James Monroe Bank merged into Mercantile Bank, which will soon merge into PNC Bank. Six of the founding directors of James Monroe Bank, together with Ategra Community Financial Institution Fund, LP, reached an agreement in October 2006 with Freedom Bank to acquire over 38% of the Bank. State and Federal regulators recently approved the transaction, which allowed the group's investment of over $5.1 million and a restructuring of the Bank's Board of Directors.

Staying on a 12 member Board are President and CEO, John T. Rohrback, attorney H. Jason Gold, CPA G. Thomas Collins, Jr., consultants Cynthia Carter Atwater and Michael A. Miranda, and William G. Dukas, founder of Karin's Florist, who is Vice Chairman. They have been joined on the Board by the six former James Monroe Bank directors: government contracting executives, Drs. Terry L. Collins, David C. Karlgaard and Alvin E. Nashman, CPA Norman P. Horn, and attorneys Russell E. Sherman and Richard C. Litman, who is Chairman of the Board.

As part of the Bank's plan, an additional $9.1 million was raised in a December 2006 private offering that was oversubscribed within a month. With the regulatory approvals, and the $5.1 million investment and new directors, the Bank has now accepted the subscriptions for this additional capital. The $15 million in additional capital supplements over $8 million in capital the Bank had before the October 2006 agreement. The additional capital increases the Bank's legal lending limit to about $3.5 million, thereby enabling it to offer larger loans to small businesses.

The bank's new chairman, Richard C. Litman, says the re-energized bank will be people driven. "There is a void left by the sale of James Monroe Bank to Mercantile Potomac Bank and that bank to PNC. Freedom Bank is ready to fill that void and provide commercial and real estate loans to small business owners, including government contractors and professionals. Our community bank is all about personal service -- from relationship-oriented business lending to responsive, experienced professional bankers. Plus, we have the benefits of state-of-the-art technology. Freedom Bank customers are family. Our mission is to help them succeed. We know our customers by name, understand their business needs, and help them achieve their business goals."

To help our customers grow and prosper, President and CEO, John T. Rohrback, notes: "Our goal is to build relationships with our customers and empower them with a whole range of value added banking products and services, such as being able to make deposits from their offices and a robust web banking interface, to competitive rates and quick turn around on lines of credit, working capital, equipment and facilities financing."

This press release contains forward-looking statements. These forward-looking statements include, but are not limited to, statements about (i) the benefits of the transaction; (ii) Freedom's plans, objectives, expectations and intentions and other statements that are not historical facts; and (iii) other statements identified by words such as "expects," "anticipates," "intends," "plans," "believes," "seeks," "estimates," "targets," "projects," or words of similar meaning generally intended to identify forward-looking statements. These forward-looking statements are based on the current beliefs and expectations and are inherently subject to significant business, economic and competitive uncertainties and contingencies, many of which are beyond the Bank's control. In addition, these forward-looking statements are subject to assumptions with respect to future business strategies and decisions that are subject to change. Actual results may differ materially from the anticipated results discussed or implied in these forward- looking statements because of numerous possible uncertainties.