Matrix Bancorp, Inc. Announces Appointment by Matrix Capital Bank of New Branch President for Its Proposed Denver Technological

Matrix Bancorp, Inc. (NASDAQ: MTXC) (the "Company")
announced today that its Matrix Capital Bank subsidiary has appointed
a new regional president for its fourth community bank branch, to be
located in southeast Denver, or the Denver Technological Center (DTC)
area.
   Van A. Horsley, a veteran banker, will head operations of the
Bank's DTC branch. He brings more than 20 years of banking experience
to his new position. Most recently, Horsley served as senior vice
president and Colorado district business banking manager at Key Bank.
In this role, Horsley managed all business banking operations across
Colorado. Previously, Horsley was senior vice president and team sales
leader at Key Bank. Prior, he was president of Union Bank & Trust's
southwest (Lakewood) branch and executive vice president for the
Denver-based bank, which was later sold to Key Bank. As president and
chief executive officer and board member of Medical Dynamics, Inc. in
Englewood, Colo., Horsley oversaw all operations of this publicly
traded medical device and dental practice management software company.
He also spent 16 years at Affiliated Denver National Bank (predecessor
to Bank One/Chase) in various roles, the latest being executive vice
president.
   Scot T. Wetzel, the Company's president and chief executive
officer and chairman, president and chief executive officer of Matrix
Capital Bank, said: "Van is a seasoned banker who has spent years in
the Colorado banking and business marketplace. His roots within the
Denver banking community make him an excellent choice for this role.
The expertise and relationships he has garnered, coupled with the
experience he gained while heading a public company involved in
acquisitions, will prove highly beneficial to our franchise. We are
currently in the process of identifying a location for our new DTC
branch, an area which is believed to be among the fastest-growing in
metro-Denver."
   Horsley commented on his joining the Bank: "As Matrix focuses on
building its community bank presence, one of the real benefits of the
organization is its local ownership and decision-making capability. As
we establish the DTC branch, our focus will be on providing
unparalleled relationship banking to small- to medium-size business
owners as well as individuals. Senior bankers who truly understand our
commitment to quality financial care and expeditious service will
manage these relationships. Our local presence allows us to provide
the exceptional service levels of a small bank while capitalizing on
the reputation and abilities of an established $2 billion financial
institution. This certainly strengthens our position in the
marketplace as we expand our banking network."
   Horsley resides in Englewood, Colo., with his wife and children.
He earned a Bachelor of Science degree in finance from the University
of Denver and earned a degree from the graduate school of banking at
the University of Colorado. He is member of the Greater Denver Chamber
of Commerce and a past board member of the Risk Management
Association. He is chairman of the University of Denver/Lambda Chi
Architectural Committee of the Lambda Chi Alpha Fraternity House
Corporation.
   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 second or third quarter of 2006, after receiving
applicable regulatory and shareholder approvals.
   At December 31, 2005, the Company reported total consolidated
assets of $2.1 billion, total loans of $1.4 billion, total deposits of
$1.1 billion and total consolidated shareholders equity of $180.7
million (includes proceeds used for the Company's January 2006 tender
offer). For more information, please visit www.matrixbancorp.com.

   Certain statements contained in this press 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 interim report could differ materially from those
stated in such forward-looking statements. Among the factors that
could cause actual results to 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; 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; the risks and
uncertainties discussed elsewhere in the Company's Annual Report on
Form 10-K for the year ended December 31, 2004, and in the Company's
Current Report on Form 8-K, filed with the Securities and Exchange
Commission on November 7, 2005; and the uncertainties set forth from
time to time in the Company's periodic reports, filings and other
public statements.