Redwood Capital Bank Announces Hiring of Risk Manager.

EUREKA, Calif. -- On December 5, 2006, Redwood Capital Bank (OTCBB:RDWO) proudly announced the hiring of Michael D. McCoy, VP/Risk Manager. CFO Fred Moore stated, "Redwood Capital Bank is committed to providing quality banking services that meet the needs of our customers in a manner which continuously earns their trust. The hiring of Mr. McCoy will further serve to achieve that goal."

Michael McCoy was the Compliance Officer at Humboldt Bank from 1998 to 2004. Following the merger with Umpqua Bank, Mr. McCoy accepted the position of Corporate Compliance Manager and relocated to Portland, Oregon. In 2002, Mr. McCoy earned the prestigious designation of Certified Regulatory Compliance Manager ("CRCM"), which he continues to hold today. To retain the CRCM certification, a compliance professional must meet the experience, education, ethics and exam requirements, as well as annual continuing education requirements.

Michael McCoy stated, "I am looking forward to joining the team at Redwood Capital Bank and getting back to work for a locally owned, community bank. Redwood Capital has done extremely well since its inception and I am very thankful for the opportunity to support the bank and the community it serves." Mr. McCoy resides in McKinleyville with his family.

For more information regarding Redwood Capital Bank, please visit our website at www.rdwo.com, contact Fred Moore, CFO, at [phone], or stop by our headquarters and main office at 402 "G" Street, Eureka, CA 95501.