MTXC Matrix Bancorp

Matrix Bancorp, Inc. (Nasdaq:MTXC) (the "Company") announced today that its wholly owned subsidiary, Matrix Capital Bank, has been named to participate nationally in the preferred lenders program (PLP) of the United States Small Business Administration, effective May 2006. Previously, Matrix Capital Bank was a PLP participant across six designated districts including Colorado, Idaho, Arizona, Texas, Oregon and Washington. With the elevation to national status, Matrix Capital Bank is now able to participate in the PLP nationally, which encompasses 68 districts spanning 50 states. PLP lenders are nominated and selected based on their historical record with the SBA. According to the SBA, these lenders must have demonstrated a proficiency in processing and servicing SBA-guaranteed loans. Under PLP, SBA delegates loan approval, closing and most servicing and liquidation authority and responsibility to these carefully chosen lenders. Scot T. Wetzel, the Company's president and chief executive officer and chairman, president and chief executive officer of Matrix Capital Bank, said: "This elevation to national PLP status will help to truly enhance the value of our franchise. Our SBA business has been an integral part of the Company's growth and business strategy for nearly a decade. This ranking will further leverage our already established position and the solid SBA reputation we have built while also strengthening our SBA-lending business on a nationwide basis." "As a result of our acquiring the ability to provide SBA-lending services across many more geographic markets, we will look to augment the Bank's marketing personnel in our SBA division to support anticipated growth in this area," Wetzel concluded. Also commenting on the PLP status, Scott Umbaugh, senior vice president of Matrix Capital Bank's SBA division, added: "We are pleased with the expansion in our PLP status because it will allow us to expedite the processing of SBA loans nationally and extend our geographic reach. More importantly, with this ranking we are better positioned to compete nationally, on a level playing field, with SBA originators throughout the country that vary in size and scope. We are very pleased with the new capabilities awarded to us by the SBA, and are gearing up internally to serve what we believe will be significant, additional SBA business." Denver-based Matrix Bancorp, Inc. is focused on developing its community-based banking network through its Matrix Capital Bank subsidiary by strategically positioning branches across Colorado's Front Range market. The Bank plans to grow its network to an estimated five to seven community-based branches over the next three to five years. The Company recently identified "United Western" as its proposed new brand name and anticipates a formal change in legal and trade names during the second or third quarter of 2006, after receiving applicable regulatory and shareholder approvals. At March 31, 2006, the Company reported total consolidated assets of approximately $2.15 billion, total loans of $1.3 billion, total deposits of $1.2 billion and total consolidated shareholders equity of $107 million. For more information, please visit www.matrixbancorp.com. Certain statements contained in this earnings release that are not historical facts, including, but not limited to, statements that can be identified by the use of forward-looking terminology such as "may," "will," "expect," "anticipate," "predict," "believe," "plan," "estimate" or "continue" or the negative thereof or other variations thereon or comparable terminology, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, and involve a number of risks and uncertainties. The actual results of the future events described in such forward-looking statements in this earnings release could differ materially are: the timing of regulatory approvals or consents for new branches or other contemplated actions; the availability of suitable and desirable locations for additional branches; and the continuing strength of our existing business, which may be affected by various factors, including but not limited to interest rate fluctuations, level of delinquencies, defaults and prepayments, general economic conditions, competition; the delay in or failure to receive any required shareholder approvals of the contemplated actions; and the risks and uncertainties discussed elsewhere in the annual report for the year ended December 31, 2005, filed with the Securities and Exchange Commission on March 15, 2006; and in the quarterly report for the first quarter ended March 31, 2006, filed with the Securities and Exchange Commission on May 11, 2006; and the uncertainties set forth from time to time in the Company's periodic reports, filings and other public statements.