Banknorth Group Increases Dividend.

Business Editors

BURLINGTON, Vt.--(BUSINESS WIRE)--Jan. 25, 2000

Banknorth Group, Inc. [NASDAQ-BKNG], at today's board of directors meeting, increased its regular quarterly cash dividend to 20 cents per common share issued and outstanding, an increase of 2 cents per common share, or 11.1%. The dividend will be paid on February 14, 2000, to shareholders of record at the close of business on February 4, 2000. Making the announcement was William H. Chadwick, president and chief executive officer.

On June 2, 1999, it was announced that Banknorth had reached a definitive agreement to be acquired by Peoples Heritage Financial Group, Inc. [NASDAQ--PHBK] in a transaction valued at $780.7 million, based on the stock price at that date. Under the terms of the definitive agreement, shareholders of Banknorth will receive 1.825 shares of Peoples Heritage common stock for each whole share of Banknorth common stock plus cash in lieu of any fractional interest. The exchange will be tax free and the transaction will be accounted for as a pooling of interests. The agreement is subject to the approval of the shareholders of both companies and requisite regulatory approvals. It is expected that the transaction will be closed in 2000.

Banknorth Group, Inc., a $4.6 billion financial services company, operates 100 offices in New York, Massachusetts, New Hampshire and Vermont, as well as Banknorth Mortgage Company, Inc. and The Stratevest Group, N.A., an investment management firm. The company serves the financial needs of customers 24 hours a day, seven days a week through its automated telephone banking system and network of 144 ATM's. More information about the company is available at http://www.banknorth.com.

Except for historical information contained herein, the matters discussed in this news release, and other information contained in the Company's SEC filings, may express &uot;forward looking statements.&uot; Those &uot;forward-looking statements&uot; may involve risk and uncertainties, including statements concerning future events or performance and assumptions and other statements that are other than statements of historical facts. The Company wishes to caution readers not to place undue reliance on any forward-looking statements, which speak only as of the date made. Readers are advised that various factors --- including, but not limited to changes in laws, regulations or Generally Accepted Accounting Principles; the Company's competitive position within the markets served of increasing consolidation within the banking industry; certain customers and vendors of critical systems or services failing to have complied with Year 2000 programming issues; unforeseen changes in interest rates; any unforeseen downturns in the local, regional or national economies --- could cause the Company's actual results or circumstances for future periods to differ materially from those anticipated or projected.

Banknorth Group, Inc. does not undertake, and specifically disclaims any obligation, to publicly release the result of any revisions that may be made to any forward-looking statements to reflect the occurrence of unanticipated events or circumstances after the date of such statements.