MTXC Matrix Bancorp

Matrix Bancorp, Inc. (NASDAQ:MTXC) (the "Company") today announced that two laptop computers, both the property of Matrix Capital Bank, were stolen from its headquarters building in downtown Denver, Colorado. The computers, one of which contains certain proprietary information regarding Matrix Capital Bank and some of its customers, are strong-password protected and the information on them is fully encrypted. The Company is in the process of contacting affected customers. No customer of any of Matrix Capital Bank's affiliates is affected by the theft. At this time, the Company has no reason to believe that any confidential customer information has been compromised or used for illicit purposes. The Company is monitoring its information database to determine if any illicit activity occurs as a result of this theft. Michael J. McCloskey, the Company's chief operating officer, said, "Despite our confidence that the data is safe, we are offering each of our customers whose information could be compromised extensive fraud detection protection through Equifax, an established credit bureau reporting company. We will provide each affected customer with a letter describing the steps we have taken on their behalf and the means by which they may register for fraud protection with Equifax. More specifically, we are providing, at our expense for a period of one year, the Equifax Credit Watch(TM) Gold with 3-in-1 Monitoring -- Credit Watch fraud protection services to each affected customer." By enrolling in the Equifax program, affected customers will be provided with an "early warning system" apprising them of changes to their credit file, as well as assistance in understanding the content of their credit file at the three national credit reporting agencies. The Company does not expect the expenses associated with the program to have a material effect on its financial performance. Scot T. Wetzel, the Company's president and chief executive officer, said, "We sincerely apologize to our customers for any potential compromise of their personal data, and we want them to know that we are taking every step possible to protect our customers from any further information compromise. Moreover, we are offering a $50,000 reward for information that leads to the recovery of the two laptop computers with proof that the information on the computers has not been compromised. Anyone who can provide such information should call Theodore J. Abariotes at 720-932-4216." Wetzel went on to say, "Matrix Capital Bank is dedicated to protecting the confidential information of each of our customers. The safeguarding of our customers' personal data is our highest priority and we take this obligation seriously. Even now, we are examining our policies, practices and procedures to reconfirm that henceforth our customers' personal data is afforded the highest protection available." Effective August 7, 2006, the Company will establish a link on its web site, www.matrixbancorp.com, to permit affected customers easy access to information concerning the event and the steps they should take to protect themselves in case their customer data is breached as a result of the theft. The Company has also established a toll-free number, 877-250-7742, for customers to call during normal business hours to ascertain the status of the case and the steps the Company has taken to protect their data. According to Wetzel, the theft occurred on Friday, July 28, 2006 sometime between 1:30 p.m. and 2:30 p.m. Thieves entered offices in the Company's headquarters tower on 17th and California Streets in Denver and removed the laptop computers while the staff in that office were temporarily absent. Each of the computers is equipped with a wireless transmission card that broadcasts the computer's identity, making discovery by radio signal detection possible within a limited range. Upon discovering the theft, Matrix Capital Bank representatives conducted an extensive but unsuccessful search of the surrounding area employing radio detection devices in an attempt to determine the presence of the stolen computers. During the night of July 28, 2006 and throughout the weekend of July 29 and July 30, 2006, Matrix Capital Bank representatives conducted an extensive review of the data contained on the personal computers and determined that one of the computers contained client data that could compromise client account safety if the strong-password and encryption technology were compromised. Since the morning of July 29, Matrix Capital Bank has been cooperating with the Federal Bureau of Investigation and the Denver Police in the investigation of this theft. The Denver Police are conducting an ongoing investigation. Also on July 29, the Company contacted representatives of the Office of Thrift Supervision to advise them of the theft. About Matrix Bancorp. Denver-based Matrix Bancorp, Inc. is focused on developing its community-based banking network through its subsidiary, Matrix Capital Bank, by strategically positioning branches across Colorado's Front Range market. The area spans the Eastern slope of the Rocky Mountains -- from Pueblo to Fort Collins, and includes the metropolitan Denver marketplace. Matrix Bank plans to grow its network to an estimated five to seven community bank branches over the next three to five years. The Company's shareholders have approved "United Western" as our new brand name and the Company anticipates a formal change in legal and trade names to be completed during the third quarter of 2006. For more information, please visit our web site at www.matrixbancorp.com. Forward-Looking Statements All forward-looking statements contained in this release are made within the meaning of and pursuant to the safe-harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are all statements other than statements of historical facts, including but not limited to statements regarding the services the Company intends to provide certain of its customers pursuant to the theft mentioned herein, and all other statements concerning the plans, intentions, expectations, beliefs, objectives, goals, and strategies of the Company and its management.