UB Unionbancal Corp

Union Bank of California: WHAT: Keitaro Matsuda, senior economist for Union Bank of California, today released his March 2007 Economic Report focusing on the California economy. This annual commentary on the state's housing market, titled "What's REALLY Wrong with the Housing Market?" is part of a monthly series produced by Matsuda on the California, Pacific Northwest and U.S. economies. � WHY: The March 2007 Economic Report discusses factors at play in California's housing market, including: � -- Slowing rates of home price appreciation � -- A significant rise in mortgage default notices during the past year � -- Decline in new home production and the lack of housing affordability in the state � -- Stability of interest rates and the tight labor market � WHO: Keitaro Matsuda has served as senior economist for Union Bank of California since 1997. He monitors economic trends and developments for Union Bank management and customers. Mr. Matsuda is also a member of the economic advisory committee of the American Bankers Association. Union Bank of California, the wholly owned subsidiary of UnionBanCal Corporation (NYSE:UB), provides a broad range of financial services to consumers, small businesses, middle market and large corporations. � AVAILABILITY: The March 2007 Economic Report is available upon request. � INTERVIEW: Keitaro Matsuda is available for interviews to share his insights about local, state and national economies. Please contact Katie Pandes to schedule an appointment.