Commonwealth Business Bank Reports Total Assets Reaching $77 Million.

LOS ANGELES -- Commonwealth Business Bank ("CBB" or the "Company")(OTCBB:CWBB) opened for operations on March 9, 2005. CBB is pleased to report remarkable growth in loans and deposits that surpass projection, and is pleased to announce its unaudited financial performance for the four-month period ended June 30, 2005.

Financial Highlights

    --  Total Assets reached     $ 76.5 million

    --  Total Deposits           $ 55.0 million

    --  Total Gross Loans        $ 35.7 million

    --  Net Loss                 $(1.8) million

The Bank reported a net loss of $1,773,000 or $0.77 per common share for the four months ended June 30, 2005. The net loss included a provision for loan losses of $532,000 and the amortization of the entire organization cost of $507,000.

"We are pleased with the progress of the Bank. The result proves that our model as a business bank is welcomed in this community. Our pipeline in real estate commercial and commercial loans will continue to be strong in the second half of the year, and we are well positioned to fund the anticipated loan growth. We believe these outstanding achievements are attributable to the concerted efforts by the shareholders, directors and employees. The harmonious cooperation among the constituents is exceptional and will bode well for the rest of the year. I am grateful to all for the seamless cruise in the initial period," said Jack Choi, President and Chief Executive Officer.

As a de novo bank, CBB puts top priority in three operational areas: credit, liquidity, and compliance. Credit quality cannot be compromised at this early stage of growth. Given our strategy as a business bank, our average loan size is bigger than that of retail banks, warranting more stringent credit risk management. Our experienced lending staff along with strong Board oversight through close monitoring and transaction review is preserving the necessary credit culture.

Liquidity is maintained through managing loan to deposit ratio, loan to asset ratio, and diversified funding sources. The Bank is closely watching both ratios and developing different sources of deposits. It is premature to set up borrowing lines for loan purposes, although the Bank currently has a number of lines of credit for negotiating letters of credit and overnight coverage.

Compliance is one of the most critical areas in the banking industry as a whole. CBB is located in one of the higher risk areas within the definition of the Bank Secrecy Act, an important national issue after 9.11. CBB established an internal Compliance Committee to ensure that the Bank is proactively adhering to the compliance requirements. Board oversight is conducted by establishing policies and procedures, timely reporting, and management accountability. The legal and reputation risk associated with the Bank Secrecy Act is by no means less emphasized than any other risk management.

Overall, the Bank is progressing to reach critical mass to generate profit while strengthening the foundation of a sound risk management.

Certain matters discussed in this press release constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements involve known and unknown risks, uncertainties and factors such as: (1) the impact of changes in interest rates, (2) fluctuation in economic conditions, (3) competition in the Company's defined market, (4) Company's ability to sustain its internal growth rate and to preserve its earning assets quality, and (5) government regulations. Although the Company believes the expectations reflected in these forward-looking statements are reasonable, it can give no assurance that these expectations will prove to have been correct.