California United Bank Opts Not to Participate in U.S. Treasury Capital Purchase Program

ENCINO, Calif.--(Business Wire)--
California United Bank (OTCBB:CUNB) announced that it has decided not to accept
an $8.3 million capital investment for which the Bank recently received
preliminary approval as part of the U.S. Department of the Treasury's Capital
Purchase Program (CPP).

"While California United Bank fully supports the overall purpose of the Capital
Purchase Program, upon careful analysis our Board and management concluded that
the CPP features and costs are not consistent with our strategic goals, and that
participation in the CPP would not be in the best interests of the Company and
its shareholders," said David I. Rainer, President and CEO of the Bank.

Rainer noted that given the short timeframe between the release of the CPP
guidelines and agreements and the application deadline, the Bank felt that the
prudent course of action was to submit its application to participate in order
to preserve its options, and then take the opportunity to carefully consider all
aspects of accepting funds awarded through the CPP. The Non-Public Bank terms to
which the Bank would be subject according to the CPP provisions were released
subsequent to the Bank`s application.

In making its decision, the Board reviewed the cost of this capital,
particularly in light of the current and expected near-term interest-rate
environment, as well as the Bank`s ability to effectively and profitably deploy
the capital while still adhering to its conservative and prudent lending
standards. In addition, statements by representatives of governmental and
legislative bodies regarding the CPP were carefully weighed. After such
consideration, the Board and management determined that the various
restrictions, costs and possible uncertainties outweighed the potential benefits
of the Bank's participation in the CPP.

"While we have decided not to participate in the capital augmentation offered by
the CPP, we believe we presently have sufficient capital to meet our current and
future anticipated capital needs," said Rainer. "It is worth noting that at
September 30, 2008, all our capital ratios were more than double the regulatory
minimums required for an institution to be considered 'well capitalized.'

"We intend to continue to use our significant existing capital strength to take
advantage of opportunities for organic and acquisitive growth. Despite the
economic difficulties over the past year, we have continued to lend to our core
constituency in accordance with prudent lending practices, and in fact, for the
nine months ended September 30, 2008 we reported solid loan growth," concluded
Rainer.

The CPP is part of the $700 billion Troubled Asset Relief Program (TARP)
established by the Emergency Economic Stabilization Act. The Bank applied to
participate in the CPP prior to the original November 14, 2008 deadline, and was
notified on December 19, 2008 that it had been approved for CPP funds.

About California United Bank

California United Bank provides a full range of financial services, including
credit and deposit products, cash management, and internet banking for business
and high net worth individuals. The Bank operates from its headquarters office
at 15821 Ventura Boulevard, Suite 100, Encino, CA 91436; West Los Angeles
Regional Office at 1640 South Sepulveda Boulevard, Suite 114, Los Angeles, CA
90025; Santa Clarita Valley Regional Office at 25350 Magic Mountain Parkway,
Suite 100, Valencia CA 91355 and Conejo Valley Loan Production Office at 4333
Park Terrace Drive, Suite 215, Westlake Village, CA 91361. Information on
products and services may be obtained by calling (818) 257-7700 or visiting the
Bank`s website at www.californiaunitedbank.com.

{NOTE}:

This news release contains forward-looking statements about the Bank for which
the Bank claims the protection of the safe harbor provisions contained in the
Private Securities Litigation Reform Act of 1995.

Forward-looking statements are based on management's knowledge and belief as of
today and include information concerning the Bank's possible or assumed future
financial condition, and its results of operations, business, and earnings
outlook. These forward-looking statements are subject to risks and
uncertainties. A number of factors, some of which are beyond the Bank's ability
to control or predict, could cause future results to differ materially from
those contemplated by such forward-looking statements. These factors include (1)
economic events and governmental activities; (2) changes in accounting policies
or procedures as may be required by the Financial Accounting Standards Board or
regulatory agencies, (3) changes in interest rates, (4) significant changes in
banking laws or regulations, (5) increased competition in the Bank's markets,
(6) other-than-expected credit losses due to real estate cycles or other
economic events, (7) earthquake or other natural disasters affecting the
condition of real estate collateral or the business environment, and (8) the
impact of changes in regulatory, judicial, or legislative tax treatment of
business transactions. Management cannot predict at this time the extent of the
economic recovery, and a slowing or reversal could adversely affect our
performance in a number of ways including decreased demand for our products and
services and increased credit losses. Likewise, changes in deposit interest
rates, among other things, could slow the rate of growth or put pressure on
current deposit levels. Forward-looking statements speak only as of the date
they are made, and the Bank does not undertake to update forward-looking
statements to reflect circumstances or events that occur after the date the
statements are made.

California United Bank
David I. Rainer, President and CEO
818-257-7776

Copyright Business Wire 2009