AMERICAN RIVER BANKSHARES SURPASSES $115 MILLION IN MARKET CAPITALIZATION

Sacramento, CA, January 10, 2005 – American River Bankshares (NASDAQ: AMRB) announced that on December 31, 2004, their stock price ended the trading day at $22.37 (price adjusted for the recently declared 5% stock dividend), creating $118.9 million in market capitalization.   In addition, the Company is scheduled to report its fourth quarter 2004 financial results later this month.  

American River Bank was established in 1983 with a total of $3.5 million invested by less than 400 local shareholders.  American River Bank formed American River Holdings in 1995 and in 2004 changed its name to American River Bankshares. 

“The size and financial standing of American River Bankshares has increased considerably”, said David Taber, President and CEO of American River Bankshares.  “We’re excited about our growth potential in the dynamic markets of Sacramento, Placer, Sonoma and Amador Counties, where American River Bank, North Coast Bank and Bank of Amador proudly serve as community partners”. 

American River Bankshares is the parent company of American River Bank (“ARB”), a community business bank serving Sacramento, CA that operates a family of financial services providers, including North Coast Bank [a division of “ARB”] in Sonoma County and Bank of Amador [a division of “ARB”] in Amador County.  For more information, please call 916-565-6100 or visit www.amrb.com; www.americanriverbank.com; www.northcoastbank.com;

www.bankofamador.com.

Forward-Looking Statement

In addition to the historical information contained herein, this press release contains certain forward-looking statements. The reader of this press release should understand that all such forward-looking statements are subject to various uncertainties and risks that could affect their outcome. The Company’s actual results could differ materially from those suggested by such forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, variances in the actual versus projected growth in assets, return on assets, loan losses, expenses, changes in the interest environment including interest rates charged on loans, earned on securities investments and paid on deposits, competition effects, fee and other non interest income earned, general economic conditions, nationally, regionally, and in the operating market areas of the Company and its subsidiaries, changes in the regulatory environment, changes in business conditions and inflation, changes in securities markets, data processing problems, a decline in real estate values in the Company’s market area, the conduct of the war on terrorism, the threat of terrorism or the impact of potential military conflicts and the conduct of war on terrorism by the United States and its allies, as well as other factors. To gain a more complete understanding of the uncertainties and risks involved in the Company’s business, this press release should be read in conjunction with the Company’s annual report on Form 10-K for the year ended December 31, 2003, and subsequent quarterly reports on Form 10Q and current reports on Form 8-K.

Investor Contact:
Mitchell A. Derenzo
Chief Financial Officer
American River Bankshares
916-231-6123

Media Contact:
Diana Walery
Corporate Communications
American River Bankshares
916-231-6117

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