UnionBanCal Board Appoints New CEO, Approves 14% Increase in Dividend

UnionBanCal Board Appoints New CEO, Approves 14% Increase in Dividend and $200 Million Addition to Share Repurchase Program

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    SAN FRANCISCO--(BUSINESS WIRE)--April 21, 2005--UnionBanCal Corporation (NYSE:UB) today announced that the Board of Directors approved the appointment of Takashi Morimura to President and Chief Executive Officer of UnionBanCal Corporation and its principal subsidiary, Union Bank of California, N.A., effective May 25, 2005. Morimura, 52, has served as Vice Chairman and Director of UnionBanCal and Union Bank of California since July 2004, and he has been a Director of The Bank of Tokyo-Mitsubishi, Ltd. (BTM), UnionBanCal's majority shareholder, since June 2002.
    Mr. Morimura's experience in the United States dates to 1982 and includes assignments at BTM in New York in the corporate banking division and the planning division. Morimura began his banking career with The Bank of Tokyo, Ltd., predecessor to BTM, upon graduation from Keio University in 1975.
    Mr. Morimura succeeds Norimichi Kanari, who has served as President and Chief Executive Officer of UnionBanCal Corporation and Union Bank of California, N.A., since July 2001. Mr. Kanari, who is a Senior Managing Director of BTM, is returning to BTM headquarters in Tokyo for a new assignment.
    During Mr. Kanari's nearly four year term as CEO, UnionBanCal generated strong growth in profitability, as well as a substantial increase in shareholder value. The value of UB shares nearly doubled, significantly outperforming industry averages, and the dividend rate increased 64 percent. Strategic highlights of Mr. Kanari's tenure included expansion of the bank's retail footprint through the acquisition of several community banks and independent insurance agencies, a substantial improvement in asset quality and an executive management reorganization in March 2005 to better position the Company to meet competitive challenges going forward.
    "I leave the company in good hands," said Kanari. "The transition phase is now complete and I have every confidence in Takashi's ability to lead the company. I also have great confidence in the other two members of the executive leadership team -- Philip Flynn, Vice Chairman and Chief Operating Officer, and David Matson, Vice Chairman and Chief Financial Officer. I expect that this strong executive management team will maintain the positive momentum we have achieved and will continue to focus on building long-term shareholder value."
    Kanari added, "I have been honored to serve as CEO of this great company, and I express my deep appreciation to our customers, employees and the Board of Directors."

    Dividend Increase and Addition to Share Repurchase Program

    UnionBanCal Corporation announced today a 14 percent increase in its quarterly common stock dividend. For the second quarter of 2005, the cash dividend will be 41 cents per common share, an increase of 5 cents per share. The dividend will be paid on July 1, 2005, to shareholders of record as of June 3, 2005. UnionBanCal Corporation has approximately 144.6 million shares of common stock outstanding.
    UnionBanCal Corporation also announced today that its Board of Directors has authorized the repurchase of an additional $200 million of the Company's common stock. When combined with the $51 million remaining on its previous repurchase authorization, the Company has $251 million in repurchase authority.
    "Our positive business momentum supports the capital management actions approved by the Board today. The 14 percent dividend increase marks the sixth time since November 1998 that the Company has increased its common stock dividend, for a total increase of 193 percent during that period. We also affirm our intention to continue returning capital to our shareholders in the form of share repurchases, with the new $200 million authorization," stated Norimichi Kanari, President and Chief Executive Officer.
    Shares may be repurchased in the open market or through privately negotiated transactions. Based on the April 20, 2005 closing price of $58.24 per share, the $251 million in repurchase authority would permit the repurchase of approximately 4.3 million common shares, or 3 percent of total shares currently outstanding.
    Since December 1999, the Company has repurchased 33.8 million shares at an aggregate cost of $1.45 billion.
    Based in San Francisco, UnionBanCal Corporation is a bank holding company with assets of $49.4 billion at March 31, 2005. Its primary subsidiary, Union Bank of California, N.A., had 316 banking offices in California, Oregon and Washington and 21 international facilities at March 31, 2005.

    Forward-Looking Statements

    The following appears in accordance with the Private Securities Litigation Reform Act. This press release includes forward-looking statements that involve risks and uncertainties. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. Often, they include the words "believe," "expect," "target," "anticipate," "intend," "plan," "estimate," "potential," "project," or words of similar meaning, or future or conditional verbs such as "will," "would," "should," "could," or "may." They may also consist of annualized amounts based on historical interim period results. Forward-looking statements in this press release include those related to management changes at the Company and proposed share repurchase activity.
    There are numerous risks and uncertainties that could and will cause actual results to differ materially from those discussed in the Company's forward-looking statements. Many of these factors are beyond the Company's ability to control or predict and could have a material adverse effect on the Company's stock price, financial condition, and results of operations or prospects. Such risks and uncertainties include, but are not limited to, adverse economic and fiscal conditions in California, including the continuing financial difficulties of the California state government; global political and general economic conditions related to the war on terrorism and other hostilities; fluctuations in interest rates; the controlling interest in UnionBanCal Corporation of The Bank of Tokyo-Mitsubishi, Ltd., which is a wholly-owned subsidiary of Mitsubishi Tokyo Financial Group, Inc.; competition in the banking and financial services industries; adverse effects of current and future banking laws, rules and regulations and their enforcement, or governmental fiscal or monetary policies; declines or disruptions in the stock or bond markets which may adversely affect the Company or the Company's borrowers or other customers; changes in accounting practices or requirements; risks associated with various strategies the Company may pursue, including potential acquisitions, divestitures and restructurings.
    A complete description of the Company, including related risk factors, is discussed in the Company's public filings with the Securities and Exchange Commission, which are available by calling (415) 765-2969 or online at http://www.sec.gov. All forward-looking statements included in this press release are based on information available at the time of the release, and the Company assumes no obligation to update any forward-looking statement.

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CONTACT: UnionBanCal Corporation John A. Rice, Jr., 415-765-2998 (Investor Relations) Michelle R. Crandall, 415-765-2780 (Investor Relations) Stephen L. Johnson, 415-765-3252 (Public Relations)

KEYWORD: CALIFORNIA JAPAN INTERNATIONAL ASIA PACIFIC INDUSTRY KEYWORD: BANKING MANAGEMENT CHANGES DIVIDEND PHOTO PHOTOWIRE SOURCE: UnionBanCal Corporation PHOTO: 43923

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