Governor Baldacci Grants TD Banknorth Pine Tree Zone Status -- Financial services company to create up to 50 new jobs --.

LEWISTON, Maine -- Governor John Baldacci recognized TD Banknorth Inc.'s Pine Tree Zone (PTZ) certification today at the company's Bates Mill operations center, making it one of nearly 50 companies to become certified under the program since its inception in February 2004.

PTZ incentives helped convince the regional financial services company to expand its Direct Banking call center in the Lewiston/Auburn area. The company will begin adding up to 50 new jobs at its call center at 729 Main Street in Lewiston. It also plans to make a $950,000 investment in improvements to the facility to accommodate the new employees in the program.

"TD Banknorth could have selected any number of locations in New England or beyond," said Governor Baldacci. "The Pine Tree Zone incentives helped put Maine at the top of its site selection list. TD Banknorth contributes significantly to Maine's economy. I want to thank TD Banknorth for its ongoing commitment to the people of Maine."

TD Banknorth Inc. (NYSE: BNK), based in Portland, is one of the 30 largest commercial banking organizations in the U.S. and was named the best managed bank in America in 2004 by Forbes magazine. The company employs more than 2,600 people in Maine including more than 1,000 in the Lewiston/Auburn area. In 1998, the former Peoples Heritage Bank, now part of TD Banknorth, opened an operations center in the historic Bates Mill complex and expanded it in 1999.

"We are pleased to continue our expansion in Maine," said TD Banknorth Chairman, President and CEO William J. Ryan. "The existence of the Pine Tree Zones encouraged us to expand in Maine rather than pursue other options."

The PTZ program is a performance-based tax incentive initiative introduced by Governor Baldacci to stimulate growth in targeted business sectors. Its premise is to provide tax incentives to encourage incremental economic activity in targeted areas of the state. Businesses qualify for the program through

job creation, and certification is based on future performance, including net new employment and property investment. The program is expected to create nearly 2,700 jobs for Maine residents over the next several years.

Pine Tree Zone benefits include: a 100 percent refund of corporate income tax and insurance premium tax for five years; a 50 percent refund for an additional five years; a return of 80 percent of the state income taxes withheld for net new employees through Employment Tax Increment Financing; 100 percent sales and use tax exemption on equipment purchases; 100 percent sales and use tax reimbursement on construction materials, local option Tax Increment Financing, and reduced electric rates.

Jack Cashman, Commissioner of the Maine Department of Economic and Community Development said, "The Pine Tree Zone program drives economic growth into the areas of Maine that need it the most. It also focuses our resources on growth industries that offer the most promise for our state in terms of quality employment and sustainability."

Industries targeted through the program include advanced technologies for forestry and agriculture, aquaculture and marine technology, biotechnology, composite materials, environmental technology, financial services, information technology, manufacturing, and precision manufacturing.

TD Banknorth Inc. is a majority-owned subsidiary of TD Bank Financial Group. The company has approximately $32.1 billion of total consolidated assets and provides financial services to more than 1.3 million households in the Northeast. TD Banknorth and Banknorth, N.A. also operate subsidiaries and divisions in insurance, wealth management, merchant services, mortgage banking, government banking and other financial services and offer investment products in association with PrimeVest Financial Services, Inc.

Businesses expanding in Maine may apply for PTZ status through Maine's Office of Business Development: www.mainebiz.org, 207-624-9800.