Matrix Bancorp, Inc. Announces Proposed New Brand Name; Company Takes First Steps toward Building Its Community-Based Banking Br

Matrix Bancorp, Inc. (NASDAQ:MTXC) (the "Company")
today announced, consistent with the themes disclosed to the public
during its recent private placement of common stock, its launch of a
proposed new brand name for the Company and its various subsidiaries.
   The Company recently identified "United Western(TM)" as its
proposed new brand name, and anticipates that a formal change in the
legal and trade names, as well as corporate logos, will occur for the
Company and various of its subsidiaries during the second or third
quarter of 2006. The name changes, which are subject to applicable
regulatory and shareholder notices, approvals and/or consents, would
change from, for example, "Matrix Bancorp, Inc." to "United Western
Bancorp, Inc." and "Matrix Capital Bank" to "United Western Bank." The
Company plans to submit the proposed name change for the publicly held
holding company at the upcoming annual meeting of shareholders,
expected to be held during the second quarter of 2006.
   Guy Gibson, chairman of the Company's board of directors, stated:
"The proposed new brand name draws on the western heritage of the
Colorado Front Range community, the Company's employees and our
institution. We look forward to providing exceptional service from our
new community banking network to the Colorado Front Range community
and to the growing businesses that serve this marketplace."
   Scot T. Wetzel, the Company's president and chief executive
officer and chairman, president and chief executive officer of Matrix
Capital Bank, added: "We are moving forward to swiftly carry out the
initiatives identified by management necessary to build our community
banking presence. Our first step is to emerge as a new brand, focused
on building a network of community bank branches around reputable
Colorado bankers across the Front Range. We believe that the United
Western Bank name will help facilitate this process as it best
reflects our goals, objectives and geographic reach."
   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.
   At September 30, 2005, the Company reported total consolidated
assets of $2.0 billion, total loans of $1.4 billion, total deposits of
$1.2 billion and total consolidated shareholders equity of $99.8
million. 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.