Capitol Bancorp Center
200 Washington Sq. North
Lansing, MI 48933

2777 East Camelback Road
Suite 375
Phoenix, AZ 85016

Analyst Contact:
Michael M. Moran
Chief of Capital Markets
877-884-5662

Media Contact:
Joal Redmond
Corporate Communications
602-977-3797

LANSING, Mich., and PHOENIX, Ariz.: October 23, 2003: Today, Capitol Bancorp Limited (NYSE:CBC) announced the issuance of $10 million of trust preferred securities through a pooled trust preferred program co-managed by Oppenheimer & Co. and Bear, Stearns & Co. The trust preferred securities, structured with a 30-year term and callable at par after five years, have a fixed rate of 7.78 percent for the first 10 years.

The approximately $10 million of additional capital funds will further strengthen the Corporation's capital position, and will support the anticipated consolidated balance sheet growth occurring at Capitol Bancorp's 30 affiliated community banks. The funds will also be allocated for general corporate and working capital purposes. On a pro forma basis as of September 30, 2003, the $2.7 billion Capitol Bancorp now has total capital funds of approximately $300 million.

Commenting on this transaction, Capitol Bancorp Chairman and CEO, Joseph D. Reid, said, "We view this transaction as an opportunity to access capital in a favorable interest rate environment and, in the process, augment our existing solid capital base."

Earlier this week Capitol Bancorp announced a 25 percent increase in its quarterly cash dividend to $0.15 per share, and last week the Corporation announced record quarterly earnings of $6 million, 36 percent greater than the year ago period. On a diluted per share basis, third quarter 2003 earnings per share of $0.44 represented a 10 percent increase from the comparable 2002 third quarter. Total consolidated assets at Capitol Bancorp Limited approximated $2.7 billion on September 30, 2003.

About Capitol Bancorp Limited
Capitol Bancorp Limited is a $2.7 billion community bank development company, with 30 individual bank charters operating in eight states. Capitol Bancorp Limited identifies opportunities for the development of new community banks, raises capital and mentors a community bank through its formative stages. Each community bank has full local decision-making authority and is managed by an on-site president under the direction of a local board of directors composed of business leaders from the bank's community. Capitol Bancorp Limited was founded in 1988 and has headquarters in Lansing, Mich. and Phoenix, Ariz. The company was named to Fortune magazine's 100 fastest-growing small public companies in the country in July 2003.