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BANK OF BOSTON EXPECTS CONTINUED PROFITABILITY; POINTS TO SIGNS OF ECONOMIC RECOVERY

 BANK OF BOSTON EXPECTS CONTINUED PROFITABILITY;
 POINTS TO SIGNS OF ECONOMIC RECOVERY
 BOSTON, March 26 /PRNewswire/ -- Bank of Boston Corporation Chairman and Chief Executive Officer Ira Stepanian said today that, for the first quarter, the corporation, "expects continued profitability and a continuation of the positive results in operating earnings and credit that we saw in the third and fourth quarters of last year." His comments were made at Bank of Boston Corporation's (NYSE: BKB) annual meeting of stockholders here.
 In reviewing performance, strategy and future direction, Stepanian detailed the corporation's "balanced bank" strategy. This strategy of building and maintaining geographically diverse, multiple earnings sources from personal, commercial and global banking businesses "has been instrumental in our ability to withstand the considerable pressures of the past 24 months. It is the foundation of 1991's dramatic turnaround. It is the means by which we will fulfill our corporate mission of being New England's preeminent bank," he said.
 Stepanian used the occasion of the annual meeeting to survey regional economic conditions and stated, "Just as Bank of Boston is recovering, New England's economy is emerging from its long, deep slide, and Massachusetts is leading the ascent." He said that the attributes that have fueled Bank of Boston's recovery -- balance, productivity, global perspective and an educated, talented work force -- are now contributing to New England's economic revitalization. "I am confident that New England will succeed, and I am certain that Bank of Boston will help lead the charge as we have for more than two centuries," he said.
 Stepanian referenced some "signs of strength" to illustrate the positive direction and vast potential of the New England economy. He identified New England firms such as Genzyme, Staples, L.L. Bean and Timberland as indicative of the kind of creative, globally oriented, disciplined companies that are positively shaping the region's economic future. He added that each of these firms is a Bank of Boston customer.
 He also commented on the recent successful financing of the Ruggles development project on Roxbury's Parcel 18, the largest privately financed construction effort in Roxbury's history. In January, Bank of Boston announced that it would provide the $26 million in needed construction financing to build Ruggles. Stepanian added, "Public-private partnerships like Ruggles, with its cooperation between business and government, are also a necessary and productive feature of our economic recovery and long-term competitiveness." The bank also announced in January the expansion of its First Community Bank to the Grove Hall section of Roxbury. First Community Bank is a bank-within-a-bank designed to meet the needs of low-to-moderate- income customers. This will be the first bank branch in Grove Hall in over 20 years. Review of Operating Results
 Charles K. Gifford, Bank of Boston president, detailed the corporation's operating results for 1991. Gifford compared the corporation's 1991 loss of $27 million against its loss of $395 million for 1990. "We are certainly not satisfied with any loss, but we are pleased with the clear direction of the numbers," he said. "Those numbers, despite the significant improvement, disguise the true scope and vigor of our turnaround," he said.
 He added that while the corporation lost $138 million during the first half of 1991, it earned $112 million for the second half -- a $250 million turnaround. He attributed this momentum to a continuing focus on the fundamentals of asset quality, balance sheet strength, expense reduction and revenue growth.
 According to Gifford, "For all the successes of the last year, we have even more hard work ahead. We cannot afford to relax, and we cannot be lulled into complacency." He then cited a number of marketing and credit initiatives underscoring the bank's intention to help lead the region through economic recovery. "For our region to grow economically, banks must again look for opportunities to lend, and we are," he said. Stock Offering Priced
 Bank of Boston also announced that it priced its offering of eight million shares of common stock yesterday at $18 per share. Underwriters for the offering are Merrill Lynch & Co., PaineWebber Incorporated and Wertheim Schroder & Co. Bank of Boston has granted the underwriters an over-allotment option of up to an additional 1.2 million shares.
 Bank of Boston Corporate is a New England-based superregional bank holding company with assets of $32.7 billion at Dec. 31, 1991. Its major banking subsidiaries are The First National Bank of Boston, headquartered in Massachusetts; Casco Northern Bank, N.A., in Maine; Bank of Boston Connecticut; Rhode Island Hospital Trust; and Bank of Vermont.
 -0- 3/26/92
 /CONTACT: Constance Hubbell of Bank of Boston, 617-434-6883/
 (BKB) CO: Bank of Boston Corporation ST: Massachusetts IN: FIN SU:


DD-EG -- NE007 -- 2034 03/26/92 14:18 EST
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Date:Mar 26, 1992
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