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Palisair Capital Partners, L.P. Sends Open Letter to Stockholders of 1st Century Bancshares, Inc.

Article Excerpt
LOS ANGELES -- Palisair Capital Partners, L.P. ("Palisair") announced today that it has issued an open letter to stockholders of 1st Century Bancshares, Inc. (OTC BB:FCTY).

The full text of the letter follows:

May 14, 2008

Dear Fellow Stockholder,

You may have read a letter dated May 8, 2008 from Alan Rothenberg, the Chairman and Chief Executive Officer of 1st Century Bancshares, and his handpicked Chief Executive Officer of 1st Century Bank, Jason DiNapoli. Messrs. Rothenberg and DiNapoli have made hostile and unsubstantiated remarks in their communication with shareholders. Their strategy appears to be predicated on disparaging 1st Century's largest stockholder, Palisair Capital Partners, L.P., by attempting to install fear and continuing to ignore the ongoing problems facing our Company.

Specifically, Messrs. Rothenberg and DiNapoli made no effort to address the following:

* A disturbing trend of nepotism at 1st Century;

* Weak internal controls and sub-standard corporate governance practices;

* Excessive turnover of senior executives;

* The poor performance of 1st Century's stock price relative to its peers since this turnover;

* Excessive use of stock options...

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