August 30, 1999 People's To Open 30 New Branches Goal is $1.2 billion deposit growth in five years

People's announcement comes just days before the merged Fleet/BankBoston branch divestiture is expected to be made public.

People's strategic decision to open these new branches is based on customer demand, according to David E.A. Carson, chairman and chief executive officer of People's. "When we analyzed our success in growing market share and looked at the opportunities to expand in Connecticut, we concluded that developing our own branches makes more sense financially than acquiring someone else's through a competitive bidding process," said Carson.

"Our market research indicates Connecticut residents are seeking stability in this time of market disruption," said John A. Klein, People's president. "We proved we could generate $1 billion in deposits through 44 new Stop & Shop branches in three and a half years. This is the next logical step for us."

The new offices will be a mix of traditional and supermarket branches. They will incorporate unique design concepts and strategies that proved successful in the bank's supermarket branches. The increased accessibility will be further complemented by People's innovative technologies, including Internet banking and trading, a 24-hour telephone banking center and the second largest network of video banking terminals in the country, added Klein.

People's announced in April it had surpassed $1 billion in deposits in its supermarket offices more than eight months ahead of schedule. Its average supermarket deposits of $25 million per office are more than quadruple the industry average.

"We've demonstrated through the Stop & Shop initiative our ability to understand and answer the complex financial needs of Connecticut's businesses and people," said Michael J. Leone, executive vice president, Regional and Direct Banking. "This significant expansion complements our existing 130 branches, and will enhance our premier branch distribution network in Connecticut."

People's has identified possible towns (see attached list) for its non-supermarket branches that will be opened in the next two years. These locations enhance the bank's distribution footprint by expanding in existing markets where the bank has proven to be successful, and by entering attractive markets where the bank currently has no, or limited, presence.

George W. Morriss, executive vice president and chief financial officer, said, "The $30 million investment in capital and initial net operating expenses for these branches contrasts quite favorably with an investment in excess of $120 million necessary to acquire $1.2 billion in deposits. We expect individual branches to turn profitable within three years."

People's Bank (www.peoples.com) is a diversified financial services company providing commercial, consumer, insurance and investment services. Founded in 1842, it is the largest independent bank in Connecticut with managed assets of more than $12 billion, 130 branches and 197 ATMs. People's is a leader in commercial banking, residential lending, Savings Bank Life Insurance sales and supermarket banking. An international credit card issuer, it ranks 17th nationally as an issuer of MasterCard and Visa credit cards.

People's subsidiaries offer brokerage services through People's Securities, Inc., asset management through Olson Mobeck & Associates, Inc., equipment financing and leasing through People's Capital and Leasing Corp., and insurance services through R.C. Knox and Company, Inc.

Contacts: Vincent J Calabrese, first vice president, comptroller, at 203-338-4114 or vjcalab@peoples.com
Roberta Burns-Howard, vice president, Corporate Communications, at 203-338-2378 or rjburns@peoples.com