BankBoston Receives Ron Brown Award for Corporate Leadership At White House With President Clinton; Community Banking Group Receives National Recognition.

BOSTON--(BUSINESS WIRE)--March 24, 1999--At ceremonies today at the White House, Chad Gifford, chairman and CEO of BankBoston accepted the Ron Brown Award for Corporate Leadership from President Clinton. Vice President Al Gore was on hand to extend his congratulations. It is the only Presidential Award to honor companies for outstanding achievements in employee and community relations. BankBoston received the award for its efforts to revitalize inner-city communities through its Community Banking Group.

Fully funded by the private sector, the award is named in honor of the late U.S. Secretary of Commerce Ron Brown. It is sponsored and managed by The Conference Board, a not-for-profit business research organization. The winners were selected by a distinguished panel of judges. More than 139 corporate programs from 61 companies were judged, with two-thirds of this year's entries from Fortune 500 companies.

"I am so proud that BankBoston's Community Banking Group (CBG) has been recognized nationally for the outstanding work being done to revitalize our inner cities," said Chad Gifford. "About 10 years ago, when we established an inner-city focused bank, I don't think any of us realized the kind of impact our vision was going to have on disadvantaged communities and neighborhoods throughout New England. The success of our Community Banking Group, and the recognition we are receiving today, would not have been achieved without strong leadership and a tremendous commitment on the part of many people throughout the organization."

Since BankBoston began its urban banking efforts in 1990 with the creation of First Community Bank (FCB), low-to moderate-income individuals and small businesses throughout New England have had far greater access to banking services, entire communities have been revitalized, and shareholders have seen a profitable return on their investment. FCB rose from seven underperforming branches in underserved, impoverished Boston neighborhoods to what is today a profitable 42-branch, 13-city "bank within a bank" with $1.6 billion in deposits.

In addition to FCB, the Community Banking Group comprises the BankBoston Development Company (BBDC). Formed in 1997, the BBDC, became the first urban investment bank in the nation created by a commercial bank. It invests in and provides equity capital to businesses and not-for-profits that serve low-to-moderate income and disadvantaged communities. In BBDC's first 15 months of operation, it has approved $66 million in urban investments.

"We have a vested interest in making sure the people who work and live in America's inner cities have the resources and the tools to be competitive," said Ira Jackson, BankBoston executive vice president and chair of the BBDC board. "These are well-run, profit-making entities, and we have been able to demonstrate through sound business practices that doing well and doing good are not mutually exclusive."

A key element to the success of the Community Banking Group, and a real differentiator in the marketplace, is its approach to dealing with the diverse cultures in its market area. Early on, when FCB was created, the idea was to provide specialized urban banking expertise and resources to partner communities. FCB introduced extended branch hours, developed consumer education programs, hired residents who speak different languages and understood varied cultures, advertised in community newspapers, and used targeted ethnic marketing techniques. A network of community development officers (CDOs) work within the community to forge strong ties with customers and lead workshops on basic banking, money management, and credit issues.

"Growing up in the Roxbury neighborhood of Boston, I witnessed first-hand the flight of businesses from the streets and the economic downturn that had befallen my community," said Gail Snowden, executive vice president and group executive of the Community Banking Group. "BankBoston saw a need to provide basic banking services to inner-city people, recognizing that if we can help to transform disadvantaged neighborhoods into those that are economically viable, the impact would be great not only on where I grew up but on the nation overall."

BankBoston's model in serving urban markets has spurred business opportunities and economic rejuvenation far beyond the scope of its own operations and the communities it serves. More importantly, by approaching the inner city as an emerging market, BankBoston has demonstrated that community development is sustainable, that this corporate commitment can be profitable, and that offering capital, credit and technical assistance to entrepreneurs and a new generation of risk-takers, can create jobs, opportunity and wealth that can transform the inner city and help it enter the economic mainstream.

As the new millennium approaches many banks are now emulating BankBoston's inner-city initiatives. However, yet again, with the establishment of the first investment bank for the inner city and a commitment to future innovation, BankBoston is creating a new paradigm.

BankBoston (NYSE:BKB), with assets of $73.5 billion and some 25,000 employees, is the nation's oldest commercial bank and New England's only global bank. BankBoston is engaged in consumer and business banking in New England; delivering sophisticated financial solutions to corporations and governments nationally and internationally; and full-service banking in leading Latin American markets. The Corporation's common stock is listed on the New York and Boston stock exchanges.