City National Bank Forms Alliance with Bank of East Asia; The Cooperative Agreement Will Enable Both Companies to Better Serve Their International Business and High-Net-Worth Clients in California and China.

LOS ANGELES -- To better serve the many California companies doing business in China and throughout Asia, City National Bank, California's Premier Private and Business Bank(R), and The Bank of East Asia Ltd. (BEA), the largest independent bank in Hong Kong, today announced a China/America joint business alliance.

Under the terms of the agreement, City National will refer to BEA its clients who need local banking services in China, as appropriate. Likewise, BEA will, as appropriate, refer to City National its clients who wish to do business in California. The agreement also will include referrals for companies who wish to do business in New York, where City National also has an office.

"We are very pleased and proud to enter into this agreement with The Bank of East Asia," said City National's Chief Executive Officer Russell Goldsmith. "City National and BEA are two very complementary, independent, local business banks committed to premier client service and financial capabilities. This agreement between our companies will enable both banks to better serve the global financial needs of our respective clients as trade, manufacturing, investing and banking expand between entrepreneurs in China and the U.S."

City National expects the agreement to benefit its clients who invest or do business in China as well as those seeking Chinese distributors for American-made goods. For one thing, BEA has legal authority to underwrite credit in China. In addition, BEA can provide financing in the local currency and offers access to local legal, accounting and other banking-related services there. Tricor Group, a member of the BEA Group and the leading professional provider of integrated business, corporate, and investor services in Asia, can also help U.S.-based clients establish and manage corporate structures for operations in China.

"We have observed increasing business activity between California and China," said The Bank of East Asia Chairman and Chief Executive Dr. David K.P. Li. "This alliance between Hong Kong's largest independent local bank and City National Bank will enable customers to enjoy banking services and commercial lines of credit, cash management, investment advice and asset management services on both sides of the Pacific."

Incorporated in Hong Kong in 1918, The Bank of East Asia has assets of more than $30 billion (U.S.). It is listed on the Stock Exchange of Hong Kong and is one of the constituent stocks of the Hang Seng Index. The bank delivers comprehensive retail and commercial banking services through more than 160 outlets covering Hong Kong and Greater China, the United States, Canada, the United Kingdom, the British Virgin Islands and Southeast Asia.

China is the world's fourth largest economy, and its commercial relationship with the United States has grown sharply in recent years. According to the U.S. Department of State, cumulative American investment in China now exceeds $50 billion, making the U.S. the second-largest foreign investor in China. Trade between the two nations last year was valued at $285.3 billion, making it the United States' third-largest trading partner (behind Canada and Mexico). Since 2000, U.S. exports to China have increased 260 percent to $41.8 billion, and California companies own the largest share of that figure, accounting for nearly 1 in 5 export dollars.

California is now the eighth largest economy in the world, and Asia-based clients looking to do business in the United States will receive access to the wide array of City National's credit, cash management, investment services and international banking capabilities.

This is the first alliance of its kind for City National Bank and the first North American alliance for the Bank of East Asia. It does not involve an exchange of equity.

About City National

City National Corporation (NYSE:CYN) is a financial services company with $14.7 billion in total assets. Its wholly owned subsidiary, City National Bank provides banking, investment and trust services through 55 offices, including 12 full-service regional centers, in Southern California, the San Francisco Bay Area and New York City.

City National Bank's International department serves businesses, professional firms, business managers and their clients, and entrepreneurs through a range of international banking services, including trade financing, currency management, foreign exchange, foreign credit information, online foreign exchange and online letters of credit.

For more information about City National, visit the company's Website at www.cnb.com.

About The Bank of East Asia

For more information on BEA, please visit any branch or the bank's homepage at www.hkbea.com.