Cambridgeport Mutual Holding Company Receives State and Federal Approvals For Plan of Conversion and Stock Issuance.

Business Editors

CAMBRIDGE, Mass.--(BUSINESS WIRE)--Feb. 23, 2000

Cambridgeport Mutual Holding Company (the "MHC") today announced that the Massachusetts Division of Banks has approved its Plan of Conversion and Stock Issuance, allowing Cambridgeport Bank's holding company to convert from mutual to stock form. The MHC also announced that the U.S. Securities and Exchange Commission has deemed the registration statement for its common stock to be effective as of February 14, 2000.

In connection with the Plan of Conversion, the MHC will convert to stock form and, as Port Financial Corp., become the stock holding company for the Bank. Port Financial will sell shares of its common stock in a subscription offering on a first-priority basis to the Bank's eligible depositors who had an aggregate of $50 or more on deposit as of July 31, 1998, and on a second-priority basis to eligible depositors who had an aggregate of $50 or more on deposit as of September 30, 1999. The Bank's tax-qualified employee benefit plans and the employees, officers, directors, trustees and corporators of the Bank or the MHC also have a right to purchase stock in the subscription offering. Residents of the Bank's community may also have an opportunity to subscribe for common stock in a community offering, if all available shares are not sold in the subscription offering.

Offering materials, including a prospectus, will be distributed to eligible depositors beginning on February 22, 2000. Depositors should read the prospectus carefully before investing. It is anticipated that between 6,800,000 and 9,200,000 shares of common stock will be offered, at $10 per share.

The offering is being managed on a best-efforts basis by Ryan, Beck & Co., Inc., and is expected to conclude on March 23, 2000. Port Financial common stock is expected to be quoted for trading under the symbol "PORT" on the Nasdaq National Market upon consummation of the offering.

Thacher Proffitt & Wood, Washington, DC, serves as special counsel in connection with the conversion and the offering.

James B. Keegan, President and Chief Executive Officer of Cambridgeport Bank, said, "We are pleased that the appropriate state and federal regulatory authorities have given their approval to our plan of conversion, which will allow Cambridgeport Bank to expand its business and to offer important new services to its consumer and commercial customers. We have a proud tradition of service, community lending, and community development throughout our entire 147-year history. We look forward to continuing and enhancing our role as a community-based lending institution, and to having many of our depositors become owners of the Bank by purchasing our stock."

Keegan noted that the conversion will not affect the terms of any loans held by borrowers of Cambridgeport Bank, nor will it affect the balances, interest rates, maturities or deposit insurance coverage of deposit accounts at the Bank.

Cambridgeport Bank is a Massachusetts-chartered stock savings bank, headquartered in Cambridge, Massachusetts. It is a wholly owned subsidiary of Cambridgeport Mutual Holding Company, a Massachusetts-chartered mutual holding company. The Bank operates 10 full-service branches and one Telebanking Center in Middlesex and Norfolk Counties, Massachusetts. At December 31, 1999, the MHC had unaudited assets of approximately $762.7 million and deposits and retained earnings of approximately $621.3 million and $79.1 million, respectively.

Further information, including the details of the offering and business and financial information about the Bank and the Company, is described in the Prospectus. The Prospectus should be received by the Bank's eligible customers on or about February 26, 2000. Copies of the Prospectus will be available after that date by calling [phone].

This release is neither an offer to sell nor a solicitation of an offer to buy common stock. The offer is made only by the Prospectus when accompanied by a stock order form. The shares of common stock are not savings accounts or savings deposits, may lose value and are not insured by the Federal Deposit Insurance Corporation, the Depositors Insurance Fund or any other government agency.