Matrix Bancorp, Inc. Announces Appointment by Matrix Capital Bank of New Regional President for Its Proposed Fort Collins, Colo

  Branch Will Mark Company's Fifth Proposed Community Bank Location;
               Temporary Facility to Open in the Interim
                    While Permanent Site is Sought

   Matrix Bancorp, Inc. (Nasdaq:MTXC) (the "Company") announced today
that its Matrix Capital Bank subsidiary has appointed Tim Ostic as
regional president for its fifth community bank branch, to be located
in Fort Collins, Colo. A specific branch site is being determined. In
the interim, Matrix Capital Bank of Fort Collins will operate from a
temporary location at 2815 East Harmony Road, Suite 108, which is
expected to be operational by mid-May 2006.
   Ostic, whose banking career spans more than 20 years, will oversee
operations of the Bank's planned facility in Fort Collins. Most
recently, Ostic was regional president at Centennial Bank of the West
(Nasdaq:CBHI), in Fort Collins. He joined the Bank in 2000 as a loan
officer and quickly moved up the ranks to become president of the
Harmony Road branch in 2002 and then regional president in 2005. As
regional president, he headed the branch and was responsible for
oversight of four other bank branches in the area.
   Previously, Ostic was vice president at 1st Choice Bank in Fort
Collins. He also served as a loan officer for First National Bank in
Fort Collins and a consumer loan officer at Rocky Mountain Bank in
both Cheyenne, Wyoming and Fort Collins. He began his career as branch
manager for a finance company in Modesto, Calif.
   "Tim is an excellent addition to the regional president banking
team we are building. He has spent 11 of his 20 years in the banking
and financial services industry working in Fort Collins, serving its
growing business community. His roots and relationships will serve our
Bank well, as we establish a presence in this important market," noted
Scot T. Wetzel, the Company's president and chief executive officer
and chairman, president and chief executive officer of Matrix Capital
Bank.
   Wetzel also said: "Tim's appointment marks the fifth regional
president put in place since announcing our plans to redirect our
Company's business and operations toward community banking back in
December 2005. We are swiftly fulfilling the goals we set forth in our
expansion plan and are on target to operate five to seven branches in
the next three to five years. Fort Collins will prove to be a key new
marketplace for our Bank."
   Ostic also discussed his position: "The career opportunity with
Matrix affords me the extraordinary chance to help build a new brand
in a prosperous business community. This is a great professional
opportunity, which I believe will prove to be both exciting and
rewarding.
   "Fort Collins is perceived as the gateway to the Front Range of
Northern Colorado, and as we build our presence here, we will service
a wide array of customers throughout the area. It truly is a vibrant
community that boasts much opportunity. While we are moving quickly to
secure a location for our new branch, the temporary location on East
Harmony Road will initially serve our customers well. We look forward
to bringing our banking philosophy to business and retail customers
throughout Fort Collins."
   Ostic, a Fort Collins resident since 1994, lives here with his
wife and two children. He received his Bachelor of Arts degree in
journalism from University of Idaho.

   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 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; 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; the risks and
uncertainties discussed elsewhere in the Company's Annual Report on
Form 10-K for the year ended December 31, 2005, filed with the
Securities and Exchange Commission on March 15, 2006; and the
uncertainties set forth from time to time in the Company's periodic
reports, filings and other public statements.