Banknorth Announces Allocation of Consideration for American Financial Acquisition.

Business Editors

PORTLAND, Maine--(BUSINESS WIRE)--Feb. 25, 2003

Banknorth Group, Inc. (NYSE: BNK) announced today the pro rata allocation payments of merger consideration for shareholders of the former American Financial Holdings, Inc. (NASDAQ: AMFH) based on American Financial shareholder elections and the terms of the transaction. The transaction closed on February 14, 2003.

Shareholders of the former American Financial who elected cash will receive 58.8735% of their consideration in cash at the rate of $32 per share and the balance in Banknorth Group shares at the rate of 1.22 shares of Banknorth common stock for each share of American Financial common stock. Shareholders who elected to receive Banknorth Group stock and nonelecting shareholders will receive all shares of Banknorth stock at the rate of 1.22 shares of Banknorth for each share of American Financial.

Banknorth Group is a $26 billion banking and financial services holding company headquartered in Portland, Maine that operates in Connecticut, Maine, Massachusetts, New Hampshire, Vermont and Upstate New York. American Financial was the $2.9 billion parent company of American Savings Bank and American Bank of Connecticut. The acquisition of American Financial vaulted Banknorth from the 14th largest to the 5th largest bank in the state based on total deposits.