Banknorth Group Acquires Community Insurance Agency In Upstate New York.

Business Editors

PORTLAND, Maine--(BUSINESS WIRE)--May 16, 2002

Banknorth Group, Inc. (NASDAQ: BKNG), a $21 billion banking and financial services holding company, will soon be providing insurance agency products and services in upstate New York. The Company has signed a letter of intent to acquire Community Insurance Agencies, Inc., headquartered in South Glens Falls, New York. Banknorth Group already conducts banking operations in upstate New York through the Evergreen Bank division of its banking subsidiary, Banknorth, N.A., which is based in Glens Falls.

"This acquisition will continue our practice of seeking to provide insurance services wherever we provide banking services," said William J. Ryan, Banknorth Group chairman, president and chief executive officer. "We continue to be innovative and aggressive in seeking to offer our customers a full range of financial services."

During 2001, Community Insurance Agencies had annual premium volume of $24 million and generated $4.2 million in annual revenue. The firm has 57 employees operating out of seven locations primarily in the Adirondacks.

The acquisition, when completed by year-end, will expand the annual premium volume of Banknorth Insurance Group, the Company's insurance subsidiary, which totaled $400 million in 2001. Banknorth Insurance Group currently operates insurance brokerage firms in Maine, Morse Payson & Noyes Insurance, W.C. Ladd & Sons and New England Benefits; New Hampshire, A. D. Davis Insurance Agency; Massachusetts, Catalano Insurance Agency, Palmer Goodell Insurance Agency, and Waters Insurance Agency; and Connecticut, The Watson Group. The insurance agencies closely follow Banknorth Group's banking presence which includes upstate New York and all the New England states except Rhode Island.

"We are pleased to join the Banknorth family," said Bruce H. Lant, who will continue as President of Community Insurance following the acquisition. "The whole direction of financial services is toward one-stop shopping to better serve the customer."

"Community Insurance serves markets very similar to those of our other agencies, from small towns to substantial northeastern cities, from rural communities to suburban neighborhoods," said Peter L. Sparta, President of Banknorth Insurance Group and Morse, Payson & Noyes Insurance. "Our agencies are typified by the ability to serve all personal insurance needs and the increasingly complex insurance needs of businesses in our communities, both large and small."

In addition to banking and insurance services, Banknorth Group, headquartered in Portland, Maine, and its subsidiaries provide trust, investment and money management services, leasing, and government banking.

Note: This news release contains certain forward-looking statements with respect to the financial condition, results of operations and business of Banknorth. Forward-looking statements are subject to various factors which could cause actual results to differ materially from these estimates. These factors include, but are not limited to, changes in general economic conditions, interest rates, deposit flows, loan demand, competition, legislation or regulation and accounting principles, policies or guidelines, as well as other economic, competitive, governmental, regulatory and accounting and technological factors affecting Banknorth's operations. In addition, acquisitions may result in large one-time charges to income, may not produce revenue enhancements or cost savings at levels or within time frames originally anticipated and may result in unforeseen integration difficulties. Investors are encouraged to access Banknorth's periodic reports filed with the Securities and Exchange Commission for financial and business information regarding Banknorth.