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: April 13, 2005: Capitol Bancorp Limited (NYSE:CBC), a $3.1 billion bank development company, announced that it has received all regulatory approvals and completed the purchase of 51 percent of the outstanding shares of common stock of Peoples State Bank in Jeffersonville, Georgia in a cash transaction valued at approximately $1.4 million. In addition, Capitol Bancorp, together with management and local investors, has invested an additional $1.6 million of equity to support the future growth and development of Peoples State Bank. The bank, with approximately $21 million in assets and $19 million in deposits, will continue to operate as a separately chartered bank affiliate within the Capitol family.

This is Capitol Bancorp's first full-service community bank in Georgia and the 34th community bank in Capitol's nine-state banking network. Capitol also operates a loan production office in Atlanta.

"This investment in a long-established Georgia community bank will provide a platform for additional growth opportunities in the state while augmenting our expansion plans for the Southeast region of the United States," said Joseph D. Reid, chairman and CEO of Capitol Bancorp. "We are excited about partnering with the board, management and staff at Peoples State Bank and together exploring opportunities to further develop this organization."

Steve D. Watts Jr. has joined the bank as president. He most recently was the chief financial officer for Langdale Industries. Prior to that he was with Goldman Sachs. "We are pleased to have someone of Steve's caliber, experience and energy on board to guide our efforts," added Reid.

About Capitol Bancorp Limited
Capitol Bancorp Limited is a $3.1 billion community bank development company, with 34 individual bank charters and operations in nine states. Capitol Bancorp Limited identifies opportunities for the development of new community banks, raises capital, mentors a community bank through its formative stages and manages its investments in its community banks. 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.