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.: July 25, 2005: Capitol Bancorp Limited (NYSE:CBC), a $3.3 billion community bank development company, has filed an application to organize a new community bank in Illinois. Pending approvals, Bank of Belleville (in organization) in Belleville, Illinois, will join Capitol Bancorp's national network of 37 community banks.

Veteran Illinois banker Kevin M. Pesko has been named president of the proposed bank which will focus on providing personalized banking services to owners of small to medium-sized business, commercial real estate professionals and local residents via a full range of loan, deposit and cash management products.

Capitol Bancorp Chairman and CEO Joseph D. Reid said this filing is part of the Corporation's ongoing development plans. "Our business model is successful because we find a banker with industry expertise, strong business instincts and a commitment to the local community," said Reid. "Kevin is a 25-year veteran of the banking industry in the Belleville area and he has the experience and entrepreneurial spirit necessary to launch Capitol's first bank in Illinois."

In other development activities, Capitol has opened three new community banks during the past two months; Bank of Bellevue in Bellevue, Washington; Fort Collins Commerce Bank in Fort Collins, Colorado; and Bank of Auburn Hills in Auburn Hills, Michigan. The banks in Washington and Colorado represent Capitol's entrance into those states.

About Capitol Bancorp Limited
Capitol Bancorp Limited is a $3.3 billion community bank development company, with 37 individual bank charters and operations in eleven 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 executive offices in Lansing, Mich. and Phoenix, Ariz.