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: Aug. 30, 2006 - Clinton D. Dunn, a longtime Texas banker, has been named president of Capitol Bancorp's (NYSE: CBC) Texas Region. In this role, Dunn will guide Capitol Bancorp's community bank development initiatives throughout Texas.

"We believe there is tremendous opportunity in Texas," said Joseph D. Reid, chairman and CEO of Capitol Bancorp. "Our strategy is to preserve, promote and expand community banking, which runs contrary to what we're seeing not only in Texas, but across the country. The recent wave of merger and acquisition activity in Texas is a shift away from community banking and we view that as an opportunity to accelerate our development efforts there."

Dunn also sees plenty of opportunity for community bank development in Texas. "Community banks remain a viable banking alternative. There will always be people who want to work with a bank that makes its lending decisions locally, understands the importance of building strong local relationships and contributes to the economic health of a community. Our unique banking model is built on these very principles," said Dunn.

In his new role, Dunn will work with experienced bankers who are interested in launching a de novo community bank funded by local investors, staffed by local bankers, and overseen by a board of directors composed primarily of local business leaders. Dunn has more than 32 years experience in the financial services industry, serving for the past 25 years in a president and/or CEO capacity for banks in Houston and Dallas as well as in the communities of Stafford and Bellaire. Prior to his banking career, Dunn was a process engineer with Exxon. He holds an MBA in finance from the University of Houston and a BS in chemical engineering from Louisiana State University. His community involvement includes serving as the vice chairman of the Stafford Economic Development Commission and on the SBA loan approval committee for the Stafford Local Development Corporation. He is an adjunct professor at LeTourneau University.

About Capitol Bancorp Limited
Capitol Bancorp Limited (NYSE: CBC) is a $3.7 billion national community bank development company, with a network of 47 separately chartered banks and bank operations in 13 states. It is the holder of the most individual bank charters in the country. Capitol Bancorp Limited identifies opportunities for the development of new community banks, raises capital for and mentors new community banks through their formative stages, and provides efficient services to its growing network of 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. Founded in 1988, Capitol Bancorp Limited has executive offices in Lansing, Michigan, and Phoenix, Arizona.