Bank of Boston launches PC banking; First New England-based bank to offer on-line banking and bill payment services through Quicken 5.0 and Microsoft Money for Windows 95.

BOSTON--(BUSINESS WIRE)--Oct. 26, 1995--Bank of Boston Corp. (NYSE: BKB) announced today that on-line banking via the personal computer is now available -- through Bank of Boston and its affiliates -- to everyone in southern New England who uses either of the two most popular personal finance software packages: Intuit's Quicken 5.0 or Microsoft's Money for Windows 95.

Through agreements reached earlier this year with Intuit and Microsoft Corp., Bank of Boston's PC Banking services are now available to 90 percent of all current users of personal financial software, estimated to be about 280,000 registered users in southern New England. Bank of Boston PC Banking includes both on-line banking and electronic bill payment services.

"Establishing Bank of Boston as the first bank in New England to offer PC banking services through either of the two most popular software packages on the market reflects our aggressive commitment to lead the industry in personal banking services," said Bank of Boston Chairman Chad Gifford. "Over the past three years, our personal banking activities -- including our retail, consumer lending, mortgage and private banking businesses -- have grown dramatically, now contributing more than 25 percent of our growing revenues. With the investments that we're making to provide better service to our retail customers clearly paying off, we are committed to providing the same level of product innovation and leadership for personal banking as we have for what have been our traditional strengths -- Global and Corporate banking services."

Bank of Boston PC Banking allows customers to:

o reconcile accounts instantly through automatic updating of transaction information within the Quicken or Microsoft Money check register;

o transfer funds between Bank of Boston accounts;

o order checks electronically;

o pay bills electronically, scheduling payments as much as 60 days in advance and establishing automatic or recurring payments; and

o communicate to Bank of Boston electronically via e-mail

To access Bank of Boston's PC Banking services, customers need only an IBM-compatible personal computer, a modem, and either Intuit's Quicken 5.0 or Microsoft's Money for Windows 95 personal finance software. Quicken is compatible with all the leading operating systems - Windows 3.1, Windows 95 and Macintosh (though on-line banking for Macintosh will not be available until late December 1995).

As for service cost, special discounts will be available to customers depending on when they subscribe.

o Customers who subscribe on or before Jan. 13, 1996 will receive free checking privileges and free on-line services until June 30.

o Those who opt to use Money for Windows 95 will receive free software.

o Quicken 5.0 users will receive a $20 rebate toward the purchase of that software.

o Customers who subscribe after Jan. 13 will also receive free on-line services through June, though the free checking account will no longer be available to them.

o Beginning July 1, 1996, the cost for combined on-line banking and electronic bill payment services through Bank of Boston PC banking will be a maximum of $5 per month, or depending on the Bank of Boston account balances, the service may be free.

"Our ability to lead New England in the delivery of PC banking reflects the depth of our commitment to providing convenient access to banking services," said Bank of Boston Vice Chairman Ed O'Neal. "Over the past six months, we have been installing ATMs in such non-traditional locations as Wal-Mart stores and Cumberland Farms. Before too long, McDonald's customers will have ready access to ATM-delivered cash just beneath the golden arches. We've reached agreements with Star Markets, Stop & Shop and Shaws to open 50 full-service branches in supermarkets throughout southern New England by the end of 1996 -- and we've opened ten such branches to date. We've grown our telebanking capability to offer banking services by phone 24-hours-a-day every day of the year. PC Banking is just the next step in providing convenient banking any time, any place, any way."

Customers can subscribe to Bank of Boston PC Banking by dialing toll free 1-800-476-6262 to talk with a PC Banking specialist. Each new customer will receive a user-friendly Welcome Kit and a temporary personal identification number (PIN) to access the system. Once a customer signs onto the system for the first time, the software will prompt the customer to select a new PIN as a security measure. The software will also automatically set up most modems, making the necessary electronic connections between the customer's PC and the bank. Once that link has been established, the system will automatically download new transaction information to maintain an up- to-date balance and transaction history.

Bank of Boston Corp. (NYSE: BKB), with assets of $46.1 billion as of Sept. 30, 1995, is one of the top 20 banks in the nation. New England's only global bank, the corporation and its subsidiaries provide comprehensive personal, corporate and global banking though a network of over 500 U.S. offices and over 100 offices in 23 countries in Latin America, Europe and Asia, the third-largest overseas network of any U.S. bank. The corporation's common and preferred stocks are listed on the New York and Boston stock exchanges.

CONTACT: Bank of Boston

Karen Schwartzman, 617/434-7594