Desert Commercial Bank Plans to Open El Centro Branch.

PALM DESERT, Calif. -- The California Department of Financial Institutions has approved an amended business plan for Desert Commercial Bank (OTCBB:DCBC), clearing the way for the Palm Desert-based bank to open a branch in Imperial County. Management plans to open the El Centro branch within the year by securing the necessary regulatory approvals, as well as raising sufficient additional capital to finance the expansion.

The development caps a whirlwind 12-month period in which the Bank received approval to organize, completed the organization, raised $16,500,000 in capital, opened a temporary facility June 16 and moved into its permanent quarters on December 12. During that period, Desert Commercial Bank (www.desertbanking.com) has built an asset base in excess of $40 million, while securing $25.7 million in deposits. Loan outstandings are valued at $15.9 million.

"All of our activities have focused on building a bank to serve businesses, professionals and individuals with high-service banking needs in the Coachella Valley," said R. Albert "Al" Roensch, President & CEO. "For most start-up banks, this would be more than a full plate. But, in part because we have come so far in 2005, the Board of Directors has also been approached with an opportunity that it felt it must consider in the best interests of our shareholders.

"Through connections in Imperial County, the Board was asked to entertain the idea of opening a branch office in El Centro. The only locally owned independent bank that operated in the area was acquired by a much larger institution. This left a number of the former investors and customers anxious to work with a bank like ours, one with a personal, local touch and culture."

Mr. Roensch said efforts are now underway to find a suitable location for the proposed branch, as well as hire capable personnel.

He added, "2005 was a busy and productive year. 2006 promises to be even busier, as we continue to build our Coachella Valley presence and work on our expansion into Imperial County."

Certain statements in this press release, including statements regarding the anticipated development and expansion of the Bank's business, and the intent, belief or current expectations of the Bank, its directors or its officers, are "forward-looking" statements (as such term is defined in the Private Securities Litigation Reform Act of 1995). Because such statements are subject to risks and uncertainties, actual results may differ materially from those expressed or implied by such forward-looking statements. These risks and uncertainties include, but are not limited to, risks related to raising additional capital, the local and national economy, the Bank's performance and implementation of its business plans, loan performance, interest rates, and regulatory matters.