MTXC Matrix Bancorp

Matrix Bancorp, Inc. (Nasdaq:MTXC) (the "Company") announced today that MTXC Realty Corp., its wholly owned real estate brokerage subsidiary operating exclusively in the Denver area ("MTXC Realty"), has agreed to sell certain assets, including substantially all of its operating assets, to Metrowest Real Estate Solutions. The agreement also provides for the termination of MTXC Realty's exclusive brokerage services agreement with First American REO Services, formerly known as Matrix Asset Management LLC, whereby MTXC Realty was the exclusive agent for First American with respect to real estate listing services in the Denver, Colorado, area. As a result of the transaction, MTXC Realty's ten full-time employees are expected to join Metrowest Real Estate Solutions. MTXC Realty did not contribute materially to the Company's net income in 2005 and was not expected to provide a material contribution to the Company's net income in 2006. 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.