MTXC Matrix Bancorp

Matrix Bancorp, Inc. (NASDAQ:MTXC) (the "Company") announced today that its registration statement on Form S-3, which registers for resale by the selling stockholders named therein, shares of the common stock sold by the Company in a private placement in December 2005, has been declared effective by the U.S. Securities and Exchange Commission. The registration statement covers sales by selling stockholders of up to 5.12 million shares of the Company's common stock. Shares of the Company's common stock covered by the registration statement are currently listed on the NASDAQ National Market, under the symbol "MTXC." A copy of the prospectus that is part of the registration statement may be obtained from the SEC by visiting www.sec.gov or you may request a copy from Matrix Bancorp, Investor Relations Department, 700 Seventeenth Street, Denver, CO 80202, Phone: 720-932-4210. Matrix' transfer agent is Computershare Trust Company, Inc. Any transfers of shares pursuant to sales under the registration statement on Form S-3 should be coordinated through Patrick Hayes at Computershare Trust Company, Inc., 350 Indiana Street, Suite 800, Golden, CO 80401, Phone: 303-262-0711. 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 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.