BankBoston Development Company Announces First Direct Equity Investment; $500,000 Capital Infusion Into Job Link of Providence, R.I. Will Create Nearly 25,000 New Jobs Over Five Years.

BOSTON--(BUSINESS WIRE)--June 5, 1998--Chad Gifford, chairman and CEO of BankBoston announces today that BankBoston Development Company (BBDC), a division of BankBoston, has closed its first direct equity deal. The announcement was made at the White House in Washington, D.C., with Vice President Al Gore, where Gifford and Earvin "Magic" Johnson served as honorary co-chairs of the first of four White House Business and Entrepreneurial Roundtables on Community Empowerment. The meetings will encourage participating CEOs from some of America's top companies to invest in distressed urban and rural companies.

BankBoston Development Company was formed one year ago as the first bank-owned urban investment bank in America providing direct equity investment to low-to-moderate income areas, minority and women-owned businesses. The mission of BBDC is to invest in and be the innovative provider of capital to businesses that benefit low-to-moderate income, disadvantaged and minority populations. What makes the for-profit BBDC unique is that, in addition to lending, the company provides equity to businesses that have not had access to venture capital in the past. Moreover, the organization provides comprehensive financial advisory services, technical assistance and consulting to its clients.

Since its inception, BBDC has committed over $58 million in debt to businesses and not-for-profits and equity to community and venture funds, as well as affordable housing rehabilitation and development. The equity investment that Gifford announced today is BBDC's first direct equity deal.

The partner is Job Link, a $10 million, Providence-based, minority-owned employment agency with additional offices in Worcester, Mass. BBDC will provide $500,000 that will allow Job Link, the largest employer of minority workers in Rhode Island, to expand its labor pool to meet the needs of other employers for skilled, semi-skilled and entry-level workers.

The Job Link deal illustrates the unique differentiation that BBDC brings to capital investment in the inner city. Through its partnership with Job Link and the infusion of capital, BBDC will become a part owner of the company. A BBDC executive will sit on Job Link's board. The goal of the BBDC is to earn a market rate of return on its invested capital.

"BBDC is a community development company with added value," said Gifford. "This concept was developed through understanding the needs of local communities and realizing that, for all of us to prosper, our urban neighborhoods need a level playing field. Essentially we have redefined how a bank can bring about economic change by proactively seeking out underserved markets and providing them with the tools and resources they need to grow and prosper."

Job Link was established in 1983 by Ali Cabral and Dennis Iacobbo and, in 1987, the company expanded to form Job Link of Massachusetts. Since its inception, it has placed 150,000 workers, most of whom are economically disadvantaged, in temporary and permanent jobs. Going forward, with the assistance of BankBoston, Job Link expects to generate an additional 25,000 new jobs over five years in Rhode Island and Massachusetts.

Job Link has developed a system of working cooperatively with over 300 companies, most of which are small to mid-size firms. It screens and test prospective employees prior to placement. In addition, Job Link provides training, including basic computer skills, and provides safety equipment and transportation to job sites to ensure a reliable work force.

In addition to previous community awards, Job Link was recently named the "Rhode Island SBA Welfare to Work Associate of the Year." The company has been a model for successful welfare-to-work programs and has also established the Job Link Learning Centers, Inc., whose principle objective is to transition individuals into valued workers.

"Our partnership with BBDC gives us the ability to expand our services to meet the needs of both small businesses and people who are looking to overcome their challenges and become productive employees," said Ali Cabral. "Our principle objective is to provide employers with a work force and create opportunities for individuals who historically may not have many options beyond welfare and other public assistance programs."

BankBoston (NYSE:BKB), with assets of $71.4 billion as of March 31, 1998, was founded in 1784 and is the 16th-largest bank holding company in the United States. BankBoston offers a full range of banking services to consumers, small businesses and corporate customers in southern New England; delivers sophisticated financial solutions to mid-size and large corporations nationally as well as corporations and governments internationally; and provides full-service banking in leading Latin American markets. The corporation's common and preferred stocks are listed on the New York and Boston stock exchanges.

CONTACT: BankBoston

Bruce Spitzer, 781/788-7812