California United Bank Reports Initial Closing of Its Stock Offering.

ENCINO, Calif. -- California United Bank (OTCBB:CUNB) announced that it completed its first closing of its current best efforts public offering of common stock on December 29, 2006. The Bank accepted subscriptions for 1,275,159 shares equaling $21,040,123.50 which, after application of expenses, the Bank expected to take into capital prior to December 31, 2006. In addition, the Bank has obtained the approval of California Department of Financial Institutions to increase the number of shares it may sell and issue in the offering by an additional 121,212 shares for a total offering by the Bank of up to 1,333,334 shares at the price of $16.50 per share. The Bank is extending the expiration date of the offering until January 13, 2007, in order to process additional subscriptions. Additional subscriptions will be received and processed until the final closing of the offering scheduled for January 13, 2007, unless terminated earlier, in the Bank's discretion.

"Our Board of Directors is gratified by the response to our secondary offering. We have chosen to do two closings in order to reflect the new capital on our year end financial statements as well as to facilitate a number of subscribers who are still waiting for funds to be delivered by IRA or 401-K custodians or who need additional time to complete their purchase," commented President and CEO David I. Rainer. "At the same time, we wanted to provide assurances to other subscribers that their subscriptions have been accepted."

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.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy a security. Offers to buy or sell securities of California United Bank are being made solely by means of and on the terms and conditions described in an Offering Circular, dated October 23, 2006 as to which the Bank has received a Permit from the California Department of Financial Institutions ("DFI") dated October 13, 2006 which was amended as of December 28, 2006. The Permit is permissive only and does not constitute a recommendation or endorsement by the DFI of the securities permitted to be offered or sold. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of these securities in any state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state.

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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.