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: January 14, 2004: Capitol Bancorp Limited (NYSE:CBC), a $2.7 billion bank development company, today announced the signing of a definitive agreement to acquire AEA Bancshares, Inc., a $148 million bank holding company headquartered in Seattle, Washington.

Asia-Europe-Americas Bank (AEA), the wholly-owned subsidiary of AEA Bancshares, Inc., is a multi-cultural bank, founded in 1995 to provide financial services to small-to-medium size businesses, entrepreneurs, and individuals in the Greater Seattle area. Capitol Bancorp currently operates 30 separately chartered affiliate community banks in eight states and recently announced its intent to purchase First Carolina State Bank, a $60 million community bank in Rocky Mount, North Carolina.

"We believe this transaction with AEA to be an excellent strategic growth opportunity for both companies," stated Joseph D. Reid, Chairman and CEO of Capitol Bancorp. "The addition of AEA enables us to enter the Pacific Northwest region with a banking operation that understands and reflects the diversity that is so intrinsic to the vibrancy of Seattle and its surrounding communities."

Subsequent to the acquisition, AEA will continue to operate as a separately chartered bank affiliate within the Capitol Bancorp family, and will represent Capitol Bancorp's first bank in the Northwestern United States.

"We have been interested in establishing a presence in the Northwest for some time and believe this transaction provides a solid entry point while facilitating continued growth for Capitol and AEA. Both parties share the basic belief that people want access to quality financial services through personalized service, and each organization has been successfully built upon that principle."

Commenting on the transaction, Per-Odd Keul, Chairman, CEO and President of AEA said, "We are excited that our success as a company that respects and strives to work with our multi-cultural communities has given us this opportunity to partner with Capitol and its myriad of resources. Our customers have benefited from a very special relationship with our staff and board of directors and we do not see that changing. It will be business as usual but with a wider range of products and services through the strength and resources Capitol can offer us."

Added Reid, "We will continue to welcome opportunities like this as well as continue with our very successful approach to growth through de novo banking. The common denominator for any transaction we might pursue is that there is a set of core values shared by the management and boards of both parties."

The transaction is subject to a final due diligence examination by Capitol Bancorp, approval by regulatory agencies and AEA's shareholders, and certain other conditions. Pending approvals, the transaction is expected to be completed mid-year 2004.

Transaction Terms
The transaction consideration will be comprised of three distinct components. Each share of AEA common stock outstanding will be converted into the right to receive a combination of cash and stock of Capitol, with the stock component based on Capitol's average trading price at closing determined in accordance with the merger agreement. At closing, AEA shareholders will receive $11 million in Capitol Bancorp common stock. In addition, a cash consideration of $6 million will be immediately used to purchase certain select assets from AEA for potential future distribution to AEA shareholders. A trustee has been appointed to facilitate the collection and subsequent distribution of such assets on behalf of AEA shareholders. The third, and final, component of the merger transaction is a performance-driven earn-out provision. Pending the ability of AEA to achieve certain earnings criteria under the terms of the agreement, AEA shareholders may receive an additional $3 million in Capitol Bancorp common stock at the end of both 2004 and 2005. At December 31, 2003, AEA had outstanding approximately 289,000 shares of common stock. In addition, AEA has outstanding approximately 24,400 options with an average exercise price of approximately $45 per share and 20,800 warrants with an average exercise price of $25 per share, which will be cashed-out based on the initial $11 million common stock component. Consummation of the transaction is not expected to have a material impact on Capitol's 2004 earnings per share.

About Capitol Bancorp Limited
Capitol Bancorp Limited is a publicly traded (NYSE:CBC) bank development company that is headquartered in Lansing, Michigan and Phoenix, Arizona. On a consolidated basis, Capitol's total assets approximated $2.9 billion at March 31, 2004. Capitol is one of the nation's largest community banking organizations, with 31 affiliate community banks operating in nine states. Based in San Diego, First California Southern Bancorp was formed in October 2002, by Capitol Bancorp Limited, to establish local community banks throughout Southern California.

Capitol Bancorp's operations include the following banks and loan production offices (LPO):