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Dear Shareholder:

Growth
I am pleased to report to you that with the addition of nine affiliate banks in 2005, Capitol Bancorp became the only banking company in America with as many as 41 separately chartered financial institutions. Additions to our affiliated bank group included:
Bank State    Bank State
Bank of Michigan Michigan    Peoples State Bank Georgia
Bank of Bellevue Washington    Fort Collins Commerce Bank Colorado
Bank of Auburn Hills Michigan    Bank of San Francisco California
Bank of Belleville Illinois    Summit Bank of Kansas City Missouri
Bank of Santa Barbara California   
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