Capitol Bancorp Center
200 Washington Sq. North
Lansing, MI 48933

2777 East Camelback Road
Suite 375
Phoenix, AZ 85016

Media Contact:
Joal Redmond
Corporate Communications
602-977-3797

LANSING, Mich., and PHOENIX: April 03, 2007: Today, Capitol Bancorp Limited (NYSE:CBC) announced the issuance of $55 million of trust preferred securities through two pooled trust preferred programs. On March 15, 2007, approximately $35 million of trust preferred securities were issued, structured with a 30-year term and callable at par after five years, with a fixed rate of 6.55 percent for the first five years, and thereafter with a floating distribution rate equal to the 3-month LIBOR plus 1.65 percent. In addition, approximately $20 million of trust preferred securities were issued on March 22, 2007, also structured with a 30-year term and callable at par after five years, with a floating rate priced at 3-month LIBOR plus 1.65 percent, and currently carrying a pre-tax cost of approximately 7 percent.

The approximately $55 million of additional capital funds will further strengthen the Corporation’s capital position, and will support the anticipated consolidated balance sheet growth occurring at Capitol Bancorp’s 51 affiliated community banks. The funds will also be allocated for general corporate and working capital purposes. On a pro forma basis as of December 31, 2006, the $4.1 billion Capitol Bancorp now has total capital funds in excess of $640 million.

Commenting on this transaction, Capitol Bancorp Chairman and CEO, Joseph D. Reid, said, "We view this transaction as an opportunity to access capital in a favorable interest rate environment and, in the process, augment our existing solid capital base. These initiatives will provide us with additional resources to proactively and efficiently react to growth opportunities."

Capitol Bancorp has opened two new community banks this year: Sunrise Community Bank in Palm Desert, California, and Bank of Tacoma in the state of Washington. Development activity is currently underway in Arizona, California, Colorado, New York, Oregon, Texas and Washington. During 2006, the Corporation opened nine community banks.

About Capitol Bancorp Limited
Capitol Bancorp Limited (NYSE: CBC) is a $4.1 billion national community bank development company, with a network of more than 50 separately chartered banks and bank operations in 14 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