California United Bank Reports Continued Asset Growth.

ENCINO, Calif. -- California United Bank (OTCBB:CUNB) today announced that after five full quarters of operations, the Bank increased total assets to $159,674,000 at September 30, 2006, an increase of $17,166,000 or 12.0 percent over June 30, 2006 and an increase of $57,784,000 or 56.7 percent over December 31, 2005.

The growth in assets for the third quarter of 2006 was accompanied by increases in loans and deposits. Deposits increased by $18,265,000 or 18.5 percent to $117,085,000 at September 30, 2006, as compared to $98,820,000 at June 30, 2006. Deposits were up $57,628,000 or 96.9% over year end 2005. Loans increased to $69,745,000 at September 30, 2006, an increase of $17,956,000 or a 34.7 percent increase from the $51,789,000 balance at June 30, 2006. Loans at September 30, 2006 were $35,170,000 or 101.7% greater than loans at December 31, 2005.

"The Bank has achieved these milestones through increasing our core business banking base," explained David I. Rainer, President and Chief Executive Officer. "The growth in the Bank's deposits has occurred without the use of high cost brokered deposits and other high rate deposit products such as internet deposits. Our loan growth results from customer relationships and does not include any loan pool purchases or similar transactions. The Bank's non-interest bearing deposits as a percentage of total deposits were consistent at 26.9% for both September 30, and June 30, 2006."

The Bank reported a net loss for the third quarter of 2006 of ($583,000); this compares positively to a net loss of ($618,000) for the second quarter of 2006, an improvement of $35,000 or 5.7 percent. This loss includes the recognition of $262,000 of stock based compensation in the third quarter of 2006 as a result of the adoption, effective as of January 1, 2006 of SFAS 123R, "Share Based Payments." The loss also includes a provision for loan losses for the third quarter of 2006 in the amount of $245,000.

"While the loan loss reserve impacts our net income, it is part of our strategy to operate conservatively and with a view to long-term shareholder value. It also reflects the success which we have achieved in the growth of our loan portfolio," explained Rainer. At September 30, 2006, the Bank's reserve for loan losses was $945,000 or 1.35% of loans while the Bank had no non-performing loans.

"This quarter has been one of significant achievements," stated Stephen G. Carpenter, Chairman of the Board. "We have received regulatory approval for a new office in the Santa Clarita Valley. We have also augmented our ability to deliver sophisticated cash management products to our customer by our roll out of 'CUB REMOTE' which allows business customers to image checks and make daily non-cash deposits from their own offices."

On October 23, 2006 the Bank announced that it had received a Permit from the California Department of Financial Institutions to issue and sell up to 1,212,122 Shares of its Common Stock to the public, in a best efforts offering, at $16.50 per share. The offering is expected to close on December 29, 2006, although it may be terminated earlier, or extended.

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 from its headquarters office at 15821 Ventura Boulevard, Suite 100, Encino, CA 91436 and West Los Angeles Regional Office at 1640 South Sepulveda Boulevard, Suite 114, Los Angeles, CA 90025. Information on products and services may be obtained by calling [phone] 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) changes in interest rates, (2) significant changes in banking laws or regulations, (3) increased competition in the Bank's markets, (4) other-than-expected credit losses due to real estate cycles or other economic events, (5) earthquake or other natural disasters affecting the condition of real estate collateral or the business environment, and (6) 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.

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