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                                                                    EXHIBIT 99.1

                                **PRESS RELEASE**
                                  -------------


Contact:
- -------
John C. Roman
President and Chief Executive Officer
(203) 720-5000

                        NAUGATUCK VALLEY SAVINGS AND LOAN
                 RECEIVES FINAL REGULATORY APPROVAL TO COMPLETE
                      MUTUAL HOLDING COMPANY REORGANIZATION
                           AND MINORITY STOCK OFFERING


         Naugatuck, Connecticut.  September 29, 2004 - The Board of Directors of
Naugatuck Valley Savings and Loan (the "Bank") announced today that the Bank has
received final regulatory approval to complete the Bank's mutual holding company
reorganization  and the  related  common  stock  offering  by  Naugatuck  Valley
Financial  Corporation (the "Company").  Trading is expected to begin on October
1, 2004, on The Nasdaq National Market under the symbol "NVSL."


         The Company sold  3,269,881  shares of common stock at $10.00 per share
in a subscription  offering,  which ended on September 9, 2004, to depositors of
the Bank as of April 30, 2003 and the Bank's  employee  stock  ownership plan in
accordance   with   subscription   rights  granted  under  the  Bank's  plan  of
reorganization.


         John C. Roman, President and Chief Executive Officer of the Bank, said,
"We are pleased by the outstanding  support shown by the depositors of the Bank,
who voted to approve  our plan of  reorganization  and who  participated  in our
stock offering. We look forward, under our new structure, to continuing to serve
our  customers  and  community  with the same  high  level of  service  that our
customers have come to expect from us."

         Upon closing of the reorganization, the Bank will convert from a mutual
savings bank to a capital stock savings bank,  with the concurrent  formation of
the Company as the stock, mid-tier holding company of the Bank and the formation
of Naugatuck  Valley  Mutual  Holding  Company  (the "MHC") as a mutual  holding
company.  The purchasers of stock in the  subscription  offering will own 43% of
the Company's outstanding shares of common stock and the MHC will own 55% of the
Company's  outstanding  shares of common stock. In addition,  in connection with
the reorganization,  the Company will contribute 152,087 shares of common stock,
which will equal 2% of the Company's  outstanding shares of common stock, to the
Naugatuck Valley Savings and Loan  Foundation,  a newly  established  charitable
foundation dedicated to charitable giving within the Bank's market area.

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         Ryan Beck & Co., Inc.  served as financial  advisor and marketing agent
with regard to the stock offering.  Muldoon Murphy Faucette & Aguggia LLP served
as counsel to the Bank.

         At June 30, 2004, the Bank had total assets of $253.7 million, deposits
of $198.9 million and total capital of $21.6 million.

         This news release contains certain forward-looking statements about the
Bank's mutual holding company  reorganization and the proposed stock issuance by
Naugatuck Valley Financial Corporation,  including the anticipated  consummation
date of the transaction.

         Forward-looking  statements  can be identified by the fact that they do
not relate  strictly to  historical or current  facts.  They often include words
like  "believe,"  "expect,"  "anticipate,"  "estimate" and "intend" or future or
conditional  verbs such as "will," "would,"  "should," "could" or "may." Certain
factors  that could cause  actual  results to differ  materially  from  expected
results include delays in completing the offering,  changes in the interest rate
environment, changes in general economic conditions,  legislative and regulatory
changes  that  adversely  affect  the  business  of the Bank and  changes in the
securities markets.