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.: May 2, 2005: Capitol Bancorp Limited (NYSE:CBC), a $3.2 billion community bank development company, has filed applications to organize two new community banks in California. Pending approval, Bank of San Francisco (proposed) and Bank of Santa Barbara (proposed) will join Capitol Bancorp's national network of 34 community banks. Currently, Capitol Bancorp has four community banks operating in California: Napa Community Bank, Sunrise Bank of San Diego, Bank of Escondido and Point Loma Community Bank.

Veteran San Francisco Bay Area banker Ed Obuchowski has been named president of Bank of San Francisco (proposed) and long-time Santa Barbara banker Greggory M. Bigger has been named president of Bank of Santa Barbara (proposed). Both banks will be full-service community banks focused on providing personalized banking services to small to medium-sized business owners, commercial real estate professionals and entrepreneurs via a full range of loan, deposit and cash management products.

Capitol Bancorp Chairman and CEO Joseph D. Reid said a key component in Capitol Bancorp's successful business model is finding experienced bankers that understand their local business climates. "Understanding of, and involvement in, a community is essential to the success of a community bank," said Reid. "Both Ed and Gregg have spent their entire banking careers in their respective communities and possess the experience and relationships necessary to launch successful operations."

Capitol Bancorp also has applications pending for new community banks in Colorado, Michigan and Washington, and recently announced it had acquired a majority interest in Peoples State Bank in Jeffersonville, Georgia. In April the Corporation announced record first quarter 2005 earnings exceeding $8 million and increased its quarterly dividend payment to $0.18 per common share.

About Capitol Bancorp Limited
Capitol Bancorp Limited is a $3.2 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.