CABB California Business Bank (CE)

California Business Bank (OTCBB:CABB) announces the Bank completed its first full calendar year ended December 31, 2006 with total assets of $85.1 million, an increase of $12.5 million or 17% over September 30, 2006 and for the year an increase of $52.9 million or 264% over December 31, 2005. Deposits increased by $12.4 million to $68.3 million or 22% increase from September 30, 2006. Loans grew to $53.5 million, up 42% from September 30, 2006. Mr. Wood, President and Chief Executive Officer, stated, �The Bank achieved these results through increasing our core business relationships and providing superior service. The Bank will continue to focus on organic growth mainly in the core commercial and industrial loan areas. We are committed to developing long-term business loan and deposit relationships. Our non-interest bearing demand deposits as a percentage to total deposits continue to trend upward to 18% as of December 31, 2006.� The Bank�s fourth quarter 2006 loss decreased to $67,142 from $201,734 for the third quarter 2006 and loss for the year of 2006 was $1,209,386. The Bank achieved its first month of profitability in November, 2006. The Bank is forecasting a profitable 1st quarter 2007 as our continued overall improved efficiency attributed to focusing on technology and cash management products rather than growing non-production personnel. The Bank is Check21 compliant and continues to experience robust growth of our Deposit Express� product for electronic deposits. California Business Bank offers a wide range of financial services to individuals, small and medium size businesses in Los Angeles, and the surrounding communities in Southern California. Our commitment is to deliver the highest quality financial services and products. Forward Looking Statements Certain matters discussed in this press release constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, and are subject to the safe harbors created by the act. These forward-looking statements refer to the Company�s current expectations regarding future operating results, and growth in loans, deposits, and assets. These forward looking statements are subject to certain risks and uncertainties that could cause the actual results, performance, or achievements to differ materially from those expressed, suggested, or implied by the forward looking statements. These risks and uncertainties include, but are not limited to (1) the impact of changes in interest rates, a decline in economic conditions, and increased competition by financial service providers on the Company�s results of operation, (2) the Company�s ability to continue its internal growth rate, (3) the Company�s ability to build net interest spread, (4) the quality of the Company�s earning assets, and (5) governmental regulations.