Bank Rhode Island Announces Expansion Plan; Bank To Add Three Branches, Grow Workforce by 15%.

Business Editors

PROVIDENCE, R.I.--(BUSINESS WIRE)--Jan. 29, 2002

Bank Rhode Island (a wholly-owned subsidiary of Bancorp Rhode Island, Inc., NASDAQ: BARI) today announced plans to add three new branches in the next year, pushing its total number of service locations in the State to 16.

The first of the three new branches will be built in Western Cranston this Spring. The Bank also is looking at branch locations in Pawtucket and in North Kingstown.

The Bank also announced it will increase its workforce by 15 percent by the end of 2002. The new positions are the result of the overall growth of the Bank, the continued growth in commercial lending and additional staff needed at the three new branches.

"We have done an excellent job growing the branch network we inherited when we opened our doors in 1996," said Merrill W. Sherman, President & CEO of Bank Rhode Island. "We feel we can grow to be a $1.5 billion institution in Rhode Island, but to do that we need to expand our branch footprint. These three branches are the first steps toward that goal."

The Bank has experienced tremendous growth since it was created in 1996 through the acquisition of 12 branches divested by Fleet as part of the Fleet/Shawmut merger. Total deposits have climbed nearly 60 percent, total assets are up more than 85 percent and commercial loan outstandings have nearly tripled.

The Bank now has 13 locations and an average branch size of $52 million, up from $35 million at inception. It has added more than 60 ATMs to its network, and has expanded its product offerings to include cash management, international trade services, non-deposit investments and online banking.

"We have spent our first five years building a solid commercial bank. We have a broad product mix and we are known as the sophisticated, service-oriented alternative to the large financial institutions that dominate our marketplace," Ms. Sherman added. "We are at a point in our history where we can now look beyond our original footprint for growth opportunities."

The first of the three new branches will be built at 2104 Plainfield Pike in Western Cranston. Construction is expected to start in March and be complete by late May. The branch will be the first to use the Xpress design developed by the Bank. Xpress branches are smaller than traditional branches and feature services tailored to commuters and drive-up traffic. Commuter patterns and the Bank's existing customer base in Cranston made the Plainfield Pike area an ideal location for an Xpress facility.

The branch will feature three drive-up lanes, including a drive-up ATM, and a commercial night depository. The lobby will be open from 9 a.m. to 3 p.m. Monday through Thursday and until 6 p.m. on Fridays. The Bank's drive thru will open at 7:30 a.m. to accommodate commuters.

The Xpress facility is one of three branch models Bank Rhode Island has developed as part of its overall expansion plan. In addition to a traditional branch model, the Bank will utilize full service automated kiosks to add depth in existing markets and also has developed a flagship branch model called Xcel. The Xcel facility features innovative design, the latest technology, and expanded hours and services.

"We believe these new branch models will enable us to develop the maximum number of branch and service locations in the most cost effective manner," Ms. Sherman said.

The Bank will look to North Kingstown because of the area's growing population and a high level of business ownership among residents. The Pawtucket branch will give the Bank a presence in six of the largest cities in the State as well as access to a large number of business customers.

Bank Rhode Island, a wholly-owned subsidiary of Bancorp Rhode Island, Inc., is a full service, FDIC insured, state chartered financial institution headquartered in Providence. Bancorp Rhode Island's total assets stood at $862.3 million as of year-end 2001 and total deposits were $670.4 million.

This release may contain "forward-looking statements" within the meaning of section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements represent the Company's present expectations or beliefs concerning future events. The company cautions that such statements are necessarily based on certain assumptions which are subject to risks and uncertainties, including, but not limited to, changes in general economic conditions and changing competition which could cause actual future results to differ materially from those indicated herein. Further information on these risk factors is included in the Company's filings with the Securities and Exchange Commission.