MTXC Matrix Bancorp

Matrix Bancorp, Inc. (NASDAQ: MTXC) (the "Company") announced today that Theodore J. Abariotes has been appointed to the post of general counsel, senior vice president and secretary, effective immediately. Abariotes rejoins Matrix after a brief hiatus. He had served as assistant general counsel at Matrix Bancorp from 2001-2005. Most recently, he served as general counsel and senior vice president for Specialized Loan Servicing LLC, a mortgage loan servicing company in Highlands Ranch, Colo. Prior to working at Matrix Bancorp, he was senior counsel for Denver-based John H. Harland Co., a software company serving the financial services arena. Before relocating to the metro-Denver area in 1998, Abariotes was president and general counsel for Water Tower Bank in Chicago, which was later acquired by Banco Popular. He also was general counsel at the holding company for Water Tower Bank and other affiliated banks located in the Chicago area before being promoted by the holding company's board of directors to president and general counsel at Water Tower Bank. Abariotes is a member of both the Colorado and Illinois bar associations. 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, stated: "We are pleased to welcome Ted back to the Company. Now, as we focus our efforts toward building a community bank branching network, Ted's knowledge of both the Matrix platform as well as his prior experience serving as a bank president, will bode well for the Company. Ted had made significant contributions to the company during his previous four-year tenure, and we look forward to having him work with us again." Abariotes added: "I am excited to once again join the company and its new senior management team. This is an excellent opportunity for me as I parlay my broad-based knowledge of Matrix Bancorp and its subsidiaries into the redirection of the community bank into a local franchise throughout Colorado's Front Range marketplace." Abariotes replaces T. Allen McConnell who will leave the Company in June 2006. Abariotes, 43, resides in Golden, Colo., with his wife and two children. He earned a bachelor of arts degree from the University of Nebraska in Lincoln, Neb., and a juris doctor (J.D.) from Creighton University School of Law in Omaha. He is member of Colorado Bar Association's Subcommittee on Financial Institutions. 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.