UnionBanCal Corporation Announces $2 Billion Capital Increase

UnionBanCal Corporation (UnionBanCal) (the Company) announced today that it will receive a $2 billion capital contribution from its parent company, The Bank of Tokyo-Mitsubishi UFJ, Ltd. (BTMU), by September 30, 2009.

“The $2 billion capital contribution is designed to provide UnionBanCal with sufficient capital now to offset potential future credit losses, assuming a highly adverse economic scenario,” said Masaaki Tanaka, President and Chief Executive Officer. “The highly adverse scenario is significantly more pessimistic than that which is incorporated into our base financial forecast, and was based on the Federal Reserve’s publicly available Supervisory Capital Assessment Program (SCAP) assumptions. To the extent actual credit costs are consistent with, or lower than, those in our base forecast, we will have considerable excess capital that could be deployed to support incremental organic growth and acquisitions.”

Mr. Tanaka continued: “The capital contribution is a voluntary and preemptive action by BTMU, made at our request, to ensure that all key constituents, including customers, counterparties, bank regulators, credit rating agencies, and employees, continue to view UnionBanCal as one of the financially strongest financial institutions in the U.S. By injecting the capital preemptively, BTMU has reaffirmed its commitment to capital strength at UnionBanCal, as well as UnionBanCal’s strategic importance within the global BTMU organization.”

The capital will have a significant positive impact on all of the capital ratios of UnionBanCal and its primary commercial banking subsidiary, Union Bank, N.A. At June 30, 2009, the Company had $4.7 billion in tangible common equity, a tangible common equity ratio of 6.56 percent, and a Tier 1 common ratio of 8.66 percent. At June 30, 2009, these capital ratios were higher than those of the Company’s regional bank peer group, and substantially higher than those of its primary California competitors. On a pro forma basis, reflecting the $2 billion capital contribution, tangible common equity would increase 43 percent to $6.7 billion, the tangible common equity ratio would increase by 2.55 percentage points, to 9.11 percent, and the Tier 1 common ratio would increase by 3.21 percentage points, to 11.87 percent, as of June 30, 2009.

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,” ”continue,” “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 credit costs and trends, the likelihood of adverse economic scenarios and the timing and effect of the capital contribution.

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 financial condition, and results of operations or prospects.

Such risks and uncertainties include, but are not limited to, further declines or disruptions in the financial markets which may adversely affect the Company or the Company’s borrowers or other customers; continued or worsening adverse economic conditions in the United States; continued or worsening adverse economic and fiscal conditions in California; increased energy costs; global political and general economic conditions related to the war on terrorism and other hostilities; fluctuations in interest rates; the ownership interest in UnionBanCal Corporation by BTMU, which is a wholly-owned subsidiary of MUFG; competition in the banking and financial services industries; deposit pricing pressures; the levels of commercial and residential real estate activity in our market; adverse effects of current and future banking laws, rules and regulations and their enforcement; effects of governmental fiscal or monetary policies; legal or regulatory proceedings or investigations; changes in accounting practices or requirements; and 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 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.

About UnionBanCal Corporation

Headquartered in San Francisco, UnionBanCal Corporation is a financial holding company with assets of $74 billion at June 30, 2009. UnionBanCal Corporation is the 16th largest commercial bank holding company in the U.S., based on assets at June 30, 2009. Its primary subsidiary, Union Bank, N.A., is a full-service commercial bank providing an array of financial services to individuals, small businesses, middle-market companies, and major corporations. The bank has 335 banking offices in California, Oregon, and Washington and two international offices. UnionBanCal Corporation is a wholly-owned subsidiary of The Bank of Tokyo-Mitsubishi UFJ, Ltd., which is a subsidiary of Mitsubishi UFJ Financial Group, Inc. (NYSE: MTU). Visit www.unionbank.com for more information.