LOS ANGELES--(BUSINESS WIRE)--Aug. 17, 2004--City National Bank,the second largest independent bank headquartered in California,announced today that its investment management division, City NationalAsset Management, has decided to shift its overall investmentstrategies for managed stock and bond portfolios based on currentmarket and economic conditions.

Within its equity portfolios, the bank has decided to shift to amore market-neutral position in industrial issues from its previousoverweighting in this sector. It also will be moving to a marketweighting from an underweight position in the financial services andconsumer staples sectors.

"We've been overweighting equities in the industrial sector of themarket for the last year or so, given their relatively attractivevaluations and strong earnings momentum," said City National's ChiefInvestment Officer Richard A. Weiss. "With the average return ofindustrial issues up more than 16 percent over that period, we havedecided to adopt a more sector-neutral stance, reflecting our beliefthat growth rates are stabilizing in the overall economy."

For fixed income portfolios, the bank will reduce its previousoverweighting in corporate bonds relative to U.S. Treasury securities.

"The corporate bond sector has significantly outperformed Treasurybonds since we put into place our overweighted position roughly a yearago," Weiss said. "However, renewed concerns about the rate ofeconomic growth and corporate earnings are driving our currentreallocation back to Treasuries and Agencies."

Weiss added that the bank will maintain the market-neutralposition adopted at the beginning of this year for its balanced stockand bond portfolios. "While the specter of inflation, rising interestrates and high oil prices pose some significant threats to thisrecovery, we are not ready to move to a more bearish position andunderweight stocks at this time."

About City National

City National Corporation (NYSE:CYN) is a financial servicescompany with $13.5 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 53 offices, including 12 full-service regionalcenters, in Southern California, the San Francisco Bay Area and NewYork City.

City National is ranked among America's top companies in Forbesmagazine's "Super 500" list. It also is one of the nation's top wealthmanagers, according to Barron's magazine. The company and itsaffiliates manage or administer more than $31 billion of client trustand investment assets.

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

Note to Editors: Richard A. Weiss, chief investment officer, CityNational Bank, is available for interview about the bank's shifts inits investment strategies, as well as the markets, economy and otherfactors that will continue to influence investment decisions in 2004and beyond.

 CONTACT: City National Bank Linda Mueller, 213.833.4719 linda.mueller@cnb.com SOURCE: City National Bank