LOS ANGELES--(BUSINESS WIRE)--Aug. 19, 2003--City National Bank,the second largest independent bank headquartered in California,announced today that its investment management division, City NationalAsset Management, is implementing a sector shift in its managed stockportfolios.

"We're moving from our current sector-neutral stance to a sectorweighting that places more emphasis on industrial stocks," said ChiefInvestment Officer Richard A. Weiss. "This shift in our equitypositions will help us take advantage of changing economicconditions."

Weiss cited a number of factors in deciding to favor or overweightthe industrial sector by 3 percent to 5 percent, at the expense ofenergy stocks and consumer staples:

- The economy is showing signs of renewed vigor. Economic growth should promote increased business investment and, in turn, increased revenue potential for the industrial sector.

-- Recent productivity gains in the industrial sector could lead to solid earnings growth as volume picks up. This operating leverage works to the significant advantage of industrial companies.

- Industrial stocks, when compared with the overall market, are still attractively valued. Shares of the typical company in this sector have not risen appreciably over the last several months.

As a result of the sector shift, City National's managed stockportfolios will become relatively underweighted in energy stocks andconsumer staples. According to Weiss, positions in the energy sectorare being trimmed due to the apparent stability of energy prices andincreasing natural gas supplies. He doesn't expect global demand forenergy to rise, but notes that major suppliers from Russia, the NorthSea and Venezuela are ready to increase production if necessary.

Weiss also notes that the consumer staples sector - especiallystocks in the household products industry - is not as economicallysensitive as other sectors of the market. "We just don't think it'sgoing to experience the same levels of sales and earnings growth inthe coming months," concluded Weiss.

About City National

City National Corporation (NYSE:CYN) is a financial servicescompany with $12.4 billion in total assets. Its wholly ownedsubsidiary, City National Bank, is the second largest independent bankheadquartered in California. As California's Premier Private andBusiness Bank(R), City National provides banking, investment and trustservices through 54 offices, including 12 full-service regionalcenters, in Southern California, the San Francisco Bay Area and NewYork City. The company has more than $26 billion in investment andtrust assets under management or administration.

For more information about City National, visit the company's Website at cnb.com.

Note to Editors: Richard Weiss, chief investment officer, CityNational Bank, is available for interview about the bank's shifttoward industrials in its managed accounts, as well as the economicrecovery and other factors that will continue to influence investmentdecisions in 2003.

CONTACT: City National Bank Linda Mueller, 213-833-4719 linda.mueller@cnb.com SOURCE: City National Bank