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: March 23, 2006: Capitol Bancorp Limited (NYSE: CBC), a $3.5 billion national community bank development company, announced today it has formed a new wealth management subsidiary, Capitol Wealth Advisors, to serve its growing nationwide network of more than 40 community banks. Capitol Wealth Advisors, subject to regulatory approval, will enable Capitol Bancorp's community bank affiliates to provide their customers with a comprehensive array of wealth management advice, services and products to help them grow, manage and preserve their wealth.

"Capitol Wealth Advisors is a natural evolution of our service-oriented business model," said Capitol Bancorp's Chairman and CEO Joseph D. Reid. "Our community banks are successful because of their individual commitment to service delivery and their focus on building a financial relationship with each customer. Through Capitol Wealth Advisors we now can provide our customers with wealth management products and services in addition to the existing traditional financial services."

Financial services industry veteran Robert R. Hogan has been appointed President and CEO of Capitol Wealth Advisors. Hogan has more than 23 years of financial services experience, including investment banking, brokerage, private client services and asset management. His background spans a wide range of industry realms, through operations, technology, internal control, risk management, regulatory, compliance and finance.

In his most recent role, Hogan served as Managing Director and Chief Operations Officer for Banc of America Securities, LLC. Prior to this position, he was an executive with Salomon Brothers and Price Waterhouse. Hogan is a Certified Public Accountant, NASD Series 7 and 27 Registered, and Six Sigma certified.

"Today the wealth management industry presents a $30-$40 trillion opportunity, of which no one financial institution controls a significant market share," said Hogan. "Even the top firms combined, service less than 12 percent of the market. This lack of dominance stems from the 'product silo' approach created by large financial institutions, which emphasizes pushing product sales through multiple delivery channels.

"Capitol Bancorp's community bank affiliates are built on providing one-on-one delivery of customized financial solutions," Hogan added. "Capitol Wealth Advisors will mirror this approach by focusing on building one-on-one relationships, to better understand and address our client's needs."

According to Reid it is the right time for Capitol Bancorp to enter into the wealth management business. "We have the right people and structure in place. By leveraging the shared-ownership model, which we have successfully deployed at the affiliate bank level, Capitol Bancorp will be able to manage the early-stage costs and resource allocation associated with this new initiative," said Reid.

"As Capitol Wealth Advisors develops and matures, much like other Capitol Bancorp affiliates, the earnings contribution and franchise enhancement will be more fully realized," Reid added.

About Capitol Wealth Advisors
Capitol Wealth, Inc., doing business as Capitol Wealth Advisors, will be headquartered in Charlotte, North Carolina. This subsidiary of Capitol Bancorp will assist clients, their families and their businesses in meeting their wealth management needs by providing advice and quality service through a single advisory relationship. Through these relationships, clients will have access to a complete suite of wealth products including investment management, brokerage, insurance, trusts, estate and tax planning, complementing the traditional services currently offered by Capitol Bancorp's national network of community banks.

Brokerage and insurance services are provided by PrimeVest Financial Services, Inc., a registered broker-dealer, member NASD/SIPC, and not affiliated with Capitol Wealth, Inc., or its related companies. Securities and insurance products offered by PrimeVest are not FDIC insured, may lose value and are not bank guaranteed.

About Capitol Bancorp Limited
Capitol Bancorp Limited is a $3.5 billion national community bank development company, with 42 individual bank charters and bank operations in 13 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, Michigan and Phoenix, Arizona.