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BANK OF BOSTON REACHES DEFINITIVE AGREEMENT TO ACQUIRE BANKWORCESTER

 WORCESTER, Mass., Sept. 22 /PRNewswire/ -- Bank of Boston Corporation (NYSE: BKB) and BankWorcester Corporation (NASDAQ: BNKW) announced yesterday that Bank of Boston has agreed to acquire BankWorcester Corporation.
 BankWorcester, holding company for Worcester County Institution for Savings (WCiS), is a financial services company located in Worcester and Worcester County, with total assets of $1.4 billion and total deposits of $1.2 billion.
 The acquisition, which was approved by the boards of directors of each company yesterday afternoon, is subject to approvals by regulators and BankWorcester's stockholders.
 Under the terms of the agreement, Bank of Boston will pay $34 per share in cash. The indicated value of the transaction is approximately $247 million.
 The acquisition is expected to close during the first half of 1994 and, until actual consummation of the transaction, BankWorcester will continue to operate independently.
 Ira Stepanian, chairman and CEO, Bank of Boston, said, "The acquisition of BankWorcester, along with our acquisition of Mechanics Bank through the recent purchase of Multibank, will give Bank of Boston a leading market position in Worcester -- the second-largest city in New England and a community of strategic importance to us."
 "This action reinforces our determination to invest resources in priority markets throughout the region. It considerably strengthens our central Massachusetts franchise, since BankWorcester's consumer franchise provides an excellent complement to Mechanics Bank's commercial strengths," Stepanian said. Stepanian added that Bank of Boston maintains 17 branches with $700 million in deposits in Worcester County following the July acquisition of Mechanics Bank. Upon consummation of the BankWorcester transaction, Bank of Boston will have $1.9 billion in deposits and 41 branches in Worcester County.
 The BankWorcester acquisition agreement follows the completion in July of Bank of Boston's most recent acquisitions of Multibank Financial Corp. (Mechanics Bank, South Shore Bank and First Agricultural Bank) and the Hartford-based Society For Savings Bancorp, Inc., which includes Fidelity Acceptance Corporation.
 Harold (Hal) Cabot, chairman, BankWorcester Corporation, said, "With Bank of Boston's national and global reach, we will be able to address more effectively the increasingly competitive marketplace. The combined strength of the Bank of Boston, Mechanics and BankWorcester franchises will provide customers and communities in Worcester with the broadest and deepest array of products, services and specialized capabilities."
 BankWorcester serves businesses and individuals primarily in the greater Worcester area through 28 branches, 24 of which are located in Worcester County and four in Middlesex County. BankWorcester customers will be able to conduct business as usual at their normal banking locations.
 Special toll-free telephone numbers have been established at both Bank of Boston and BankWorcester to respond to customer inquiries about the acquisition and service over the months ahead. For questions regarding BankWorcester accounts, customers may call 1-508-831-4500 daily from 9 a.m. to 5 p.m. For questions related to Bank of Boston, customers may call 1-800-752-6611 from 8:30 a.m. to 5 p.m., Monday through Friday.
 BankWorcester has 600 employees. Bank of Boston has 19,457 employees worldwide and offers a full range of banking services to businesses and individuals in 25 countries. Bank of Boston currently maintains 319 branches in New England.
 Bank of Boston Corporation, with assets of $37.5 billion, is the oldest-chartered bank in the nation and New England's only global bank. The corporation and its subsidiaries provide a broad range of financial services to individual, corporate, institutional and governmental customers, as well as to other banks. Its common and preferred stocks are listed on the New York and Boston stock exchanges.
 -0- 9/22/93
 /CONTACT: Karen Schwartzman of Bank of Boston, 617-434-7594 (media); Hal Cabot or Charles Troccia of BankWorcester, 508-831-4265 or 508-831-4461 (media); John Kahwaty of Bank of Boston, 617-434-3650 (investor); Dennis Byrne or Anthony Keller of BankWorcester, 508-831-4460 or 508-831-4293 (investor)/
 (BKB BNKW)


CO: BankWorcester Corporation; Bank of Boston Corporation ST: Massachusetts IN: FIN SU: TNM

DJ-DD -- NE002 -- 4516 09/22/93 08:11 EDT
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Publication:PR Newswire
Date:Sep 22, 1993
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