Matrix Bancorp, Inc.'s Wholly Owned Subsidiary, Matrix Capital Bank, Earns National Preferred Lenders Program (PLP) Status from

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.