Tri Counties Bank issued a statement today regarding plans to accept state-registered warrants (IOUs) from the State of California through July 10, 2009.

�To further assist our customers in avoiding potential financial hardship, we will accept on a limited basis California state-registered warrants.� In addition, we will work with our customers on a case-by-case basis to address short term needs through our existing products and services. Tri Counties Bank will only accept state-registered warrants that are made payable directly to our customers. We will not be accepting registered warrants from any third-party sources.

The current State of California budget crisis is having an impact on Californians in both the short and long term. We hope that by accepting these IOU�s, we can support our customers while giving some additional time for the state legislature to pass a budget. Our preference would be to see the state budget impasse resolved without further delay.

We advise our customers who have questions to call us or come in to speak to us regarding any of their financial concerns.

For further information about Tri Counties Bank, contact 1-800-922-8742 or visit www.tricountiesbank.com.

TriCo Bancshares and Tri Counties Bank are headquartered in Chico, California. Tri Counties Bank has a 34-year history in the banking industry. It operates 32 traditional branch locations and 25 in-store branch locations in 23 California counties. Tri Counties Bank offers financial services and provides a diversified line of products and services to consumers and businesses, which include demand, savings and time deposits, consumer finance, online banking, mortgage lending, and commercial banking throughout its market area. It operates a network of 64 ATMs and a 24-hour, seven days-a-week telephone customer service center. Brokerage services are provided by the Bank�s investment services affiliate, Raymond James Financial Services, Inc. For further information please visit the Tri Counties Bank web site at http://www.tricountiesbank.com.

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