New Executives Will Build on Capital Pacific Bank's Solid Foundation

Capital Pacific Bank (OTC BB: CPFB) today announced the appointment of two experienced financial service executives to lead the bank's strategic growth and future diversification of services.

Mark C. Stevenson joins Capital Pacific Bank as chief executive officer. Robert A. Krueger takes the post of president. Larry Rosencrantz, one of the bank's founders, continues his leadership as chairman. Mack Lai, who has served as interim CEO during the executive search, will be assisting with the transition and will be leaving the bank.

"We have attracted two unique individuals with experience in both traditional and investment banking to lead Capital Pacific through its evolution into a full-fledged financial services company," said Rosencrantz. "Having reached a key benchmark of sustainable profitability in just two years, Capital Pacific Bank is poised to leverage our initial success as a business bank. Mark and Bob bring expertise and an innovative point of view to help us accelerate our growth."

Stevenson and Krueger most recently were managing directors at the Portland, Oregon office of Piper Jaffray & Co., where they forged a strong and effective working relationship over seven years. They each began their careers as commercial bankers.

"Bob and I share a history of collaborating to build businesses around unique niches and strengths in a very competitive financial service environment," said Stevenson. "We're looking forward to applying our entrepreneurial perspective and energy to Capital Pacific Bank.

"The bank has strong management and client service teams who understand and are committed to supporting the local business community," he continued. "My job is to build upon that solid foundation in a manner that adds value for bank clients, shareholders and employees."

Stevenson's experience at Piper Jaffray included management of corporate bond and commercial paper financing, asset securitization and mezzanine funding. Prior to joining Piper Jaffray in 1997, he was senior vice president and credit approval manager for U.S. Bank's national corporate and international banking clients. He began his career in 1983 with Security Pacific Bank in San Francisco. Stevenson holds a B.A. in economics and Spanish from Stanford University.

Robert Krueger also brings more than 20 years of diverse financial service experience to his role as president of Capital Pacific Bank. As an investment banker at Piper Jaffray, he was responsible for the origination and structuring of an array of debt products for public and private corporate clients based in the Northwest. His career at U.S. Bank began in 1981 as a trainee in the work-college program. He consistently rose through the ranks within the commercial banking division, and in 1993 he helped start U.S. Bank of Oregon's business development team. In 1995 he became vice president and director of the investment banking division. Krueger graduated from Whitworth College with a degree in business management.

"While I'm well grounded in traditional banking, my years as an investment banker have given me a sense of urgency that I know is shared by many businesses in this community," said Krueger. "I'm attracted to Capital Pacific's motto of 'Getting it done' and am determined to help make this Portland's premier business bank."

Capital Pacific Bank (OTC BB: CPFB), headquartered in the Fox Tower in downtown Portland, offers a full array of bank products and services delivered through a strategic combination of highly experienced client service officers and the innovative application of technology.

Founded in late 2003 by a group of experienced bankers and initial investor capital of $15 million, Capital Pacific Bank has focused on delivering an elite level of service to the region's business community. The bank's founders envision enhancing its core business over time with carefully selected, complementary financial services that will benefit customers as well as shareholders.

For more information, visit www.capitalpacificbank.com.

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