Salem Five Teams With Linsco/Private Ledger to Offer Quality Investment Services; Demonstrates Commitment to Customer Service Excellence Via Innovative Service Offerings.

Business Editors

SALEM, Mass.--(BUSINESS WIRE)--Feb. 6, 2003

Joseph M. Gibbons, President and CEO of Salem Five, is pleased to announce the Bank's new relationship with Linsco/Private Ledger ("LPL"), a registered broker/dealer and investment adviser whose services are now available through Salem Five Investment Services, LLC. Formed in 1989 through the merger of two small, successful brokerage firms, Linsco (established in 1968) and Private Ledger (founded in 1973) is the nation's largest organization of independent financial advisers.

LPL is America's number one independent brokerage firm with more than 4,350 registered representatives, based in 2,100 branch offices nationwide. LPL's rapid growth is due to:

-- Objectivity: Dedication to independent research and unbiased investment advice

-- Financial Strength: LPL's excess net capital, a measure of solvency and ability to invest in training, technologies and research, is the highest among all independent brokerage firms.

-- National Presence: LPL has been named the #1 independent brokerage firm in the nation for seven consecutive years.(1)

According to Mr. Gibbons, "The partnership with Linsco/Private Ledger solidifies our goal to offer customers the highest quality investment advice to meet their individual financial objectives." Mr. Gibbons continued, "Salem Five and LPL will work together to offer objective, independent guidance and access to research and analysis to help our customers make the soundest investment decisions."

LPL is a member firm of the Securities Investor Protection Corporation (SIPC). SIPC membership enables LPL to offer customers the maximum level of protection for their accounts, insuring brokerage account assets up to $500,000 of which $100,000 may be in cash. LPL offers a wide range of investment options including:

-- Stocks and Bonds

-- Mutual Funds

-- Asset Management Accounts

-- Insurance

-- Annuities and other tax-sensitive investments

-- Domestic and Foreign Securities

-- Estate, college, business, tax and retirement planning

In addition, LPL offers unbiased research, leading-edge technology and non-proprietary products to provide the advice and services the Bank's customers need. With customer approval, there will be a transfer of accounts to LPL, which will in no way affect current investments other than the broker/dealer name change appearing on statements and other correspondence.

Dedicated to the promise of working in the best interests of its customers, Salem Five is a multi-billion dollar provider of banking, mortgage, investment and insurance products and services and is a bank technology leader in New England. Established in 1855 and headquartered in Salem, Massachusetts, Salem Five has branches in Boston, Salem, Lynn, Peabody, Swampscott, Danvers, Hamilton-Wenham and Saugus. A licensed mortgage lender in all six New England states and Florida, Salem Five has nine loan production offices located in Mansfield, Mashpee, Plymouth, Weymouth, Burlington and Auburn, Massachusetts, York, Maine, and North Providence, Rhode Island.

Securities offered through Linsco/Private Ledger, Member NASD/SIPC.

Not FDIC Insured * No Bank Guarantee * May Lose Value * Not a Deposit

Not Insured by any Federal Government Agency

Insurance Products offered through Private Ledger Insurance

Services of Massachusetts, Inc.

(1) Based on revenues, as reported in Financial Planning Magazine,

June 1996-2002.