Virginia Financial Group Announces Increase in Dividend

CULPEPER, Va., Oct. 27  /PRNewswire-FirstCall/ -- Virginia Financial Group, Inc. (NASDAQ:VFGI) announced today that its Board of Directors has declared a quarterly dividend of $.16 per share, payable on November 24, 2006 to shareholders of record as of November 3, 2006. This dividend represents an increase of $.0067 per share from the last quarterly dividend paid of $.1533 per share, adjusted for the three for two stock split in the form of a stock dividend paid on September 6, 2006. Based on the October 24, 2006 closing price of a share of VFG stock, the adjusted annual dividend rate of $.64 per share represents a yield of 2.3%.

Virginia Financial Group, with $1.6 billion in assets, is one of the largest Virginia based community bank holding companies. It is the parent company for Planters Bank & Trust Company of Virginia - in Staunton; Second Bank & Trust - in Culpeper; Virginia Heartland Bank - in Fredericksburg and Virginia Commonwealth Trust Company - in Culpeper. The Company is a traditional community banking provider, offering a full range of business and consumer banking services including trust and asset management services via its trust company affiliate. The organization maintains a network of thirty- nine branches serving Central and Southwest Virginia. It also maintains five trust and investment service offices in its markets. For more investor information, please visit our website at http://www.vfgi.net/. 

DATASOURCE: Virginia Financial Group, Inc.



CONTACT:  Jeffrey W. Farrar, Executive Vice President and CFO of Virginia

Financial Group, Inc., [phone], 



Web site:  http://www.vfgi.net/

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