Matrix Bancorp, Inc. Promotes Three Senior Executives; Company's Redirection Toward Community Banking Facilitates Promotions at

Matrix Bancorp, Inc. (NASDAQ: MTXC) (the "Company")
announced today that three senior executives have been promoted to new
roles within the organization.
   Benjamin C. Hirsh has been named chief accounting officer of
Matrix Bancorp. He will continue to serve as chief financial officer
of the Company's Matrix Capital Bank subsidiary on an interim basis
until his replacement is chosen, which is expected to occur within the
next 90 days. In his new position, Hirsh will be responsible for the
accounting and financial reporting functions for the Company,
including selection and implementation of accounting policies and
procedures, internal, regulatory and SEC reporting, income tax
compliance and budgeting.
   Hirsh joined Matrix Bancorp in November 2000 as director of
internal audit and in October 2001, was promoted to chief financial
officer of Matrix Capital Bank. He also serves as a director of Matrix
Capital Bank, and holds the position of chief financial officer and
financial and operations principal of First Matrix Investment
Services, the broker/dealer subsidiary of Matrix Bancorp. Hirsh's
financial career spans nearly 25 years.
   Glenna J. Hale was named executive vice president and head of
consumer banking for Matrix Capital Bank. Since July 2005, she served
as senior vice president and chief operating officer of Matrix Capital
Bank. In her new position, Hale will oversee sales and service efforts
for the Bank and its consumer lending and private banking programs,
including wealth management and trust services. She will also retain
responsibility for the Bank's institutional deposit management and
origination business. Hale and her team will work to expand the suite
of products and services geared toward meeting the deposit and
investment needs of the Bank's new target customers, while also
generating new revenue sources for the organization.
   Hale joined Matrix Capital Bank in 2002 as senior vice president
and trust department head and was named the first president of MG
Trust Company, a Matrix Bancorp subsidiary which the company divested
in 2005. Hale boasts more than 25 years of management experience
within the financial services industry.
   Patrick Howard, a senior level banker with over 20 years of
experience (12 of which have been with Matrix Capital Bank), will
assume the role of executive vice president and chief operating
officer of Matrix Capital Bank, replacing Hale. Currently, he is
president and chief executive officer of Matrix Financial Services
Corporation, the Company's mortgage subsidiary, and a director of
Matrix Capital Bank. Howard will continue to serve in these
capacities.
   As COO of the Bank, Howard will oversee the operational platform
that supports the community bank franchise the Company is building to
ensure the delivery of premier customer service in a regulatory sound
and compliant manner. Additionally, over the next two years, Howard
will be focused on identifying and constructing the Bank's four
previously announced proposed new branches in key Denver-area
sub-markets, including Cherry Creek and the Denver Technological
Center (DTC) as well as those in Boulder and Ft. Collins. Howard
joined Matrix Capital Bank in January 1994 and held various executive
level positions, including the previous role of chief operating
officer during its growth from $54 million in assets to its current $2
billion.
   Commenting on the promotions, Scot T. Wetzel, the Company's
president and chief executive officer and chairman, president and
chief executive officer of the Company's Matrix Capital Bank
subsidiary, said: "Ben, Glenna and Pat have made significant
contributions to the Bank during their employment. As we redirect our
focus toward community banking across Colorado's Front Range, we will
draw upon the financial services expertise of these three key
executives as well as their tenure within our organization. We are
building a management team that will play a key role in our long-term
success as a community bank, and Ben, Glenna and Pat possess banking
knowledge and relationships that bode well for our company as we grow
our franchise. We are pleased to capitalize on existing talent within
our own organization as we carry out our expansion plans."
   Hirsh is a resident of Commerce City, Colo., while Hale resides in
Aurora, Colo., and Howard in Arvada, Colo.

   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 press release 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, 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.