Banknorth Launches Small Business Online Banking

Smart Online, Inc. Delivers Online Business Applications to Enhance Banknorth's New Online Services

Portland, Maine (April 1, 2002) - Banknorth Group (NASDAQ: BKNG) announced today it has launched a host of online banking and business services for its more than 126,000 small business customers in the northeastern United States.

Available at www.banknorth.com, small business customers at any of the company's banking affiliates in six states can now check their account balance, order checks, pay bills online, or take advantage of many business productivity applications and services to enhance their business growth. This new service, called eSource and powered by Smart Online, Inc., provides small-business owners - even those who are not bank customers - with a variety of online applications such as business and marketing plans, legal documents and business research required to manage the business life cycle.

Specifically, the comprehensive online banking program announced today includes:

Banknorth Online Account Management, a free service that allows small business customers to check their balance, transfer funds and re-order checks through a secure server on the Internet.

Banknorth eBillPay for Business, a fee-based service structured by the type of account a small business customer has at the bank. This service provides businesses with a secure way to pay bills online. Once enrolled, customers can log on to the bank website to set up their account and start paying bills immediately.

Banknorth Small Business eSource, powered by Smart Online, is an affordable, subscription-based program with the most comprehensive business productivity applications offered to bank customers in the region. eSource features a broad array of business planning, marketing, financial, human resources and legal products and services:

Financial Applications Module

This module includes valuable applications to start and grow a business, such as the Business Plan, Financial Analysis, and Business Plan Concept. Also provided is content to assist users in their business planning and financial analysis.

Personnel/Human Resources Applications Module

This module includes applications to help start and manage a business, such as Policy Manual and Job Description. A personnel guide is also available.

Legal Applications Module

Legal applications include Government Forms, Legal Forms, Incorporator, Business Letters, and Rental. A legal guide is also available.

Sales and Marketing Applications Module

This module includes Market Research, Marketing Plan, and Marketing Brief applications. Content and articles are provided to assist users with marketing efforts, and e-mail expert consultation is available.

My Documents

Provides unlimited, password-protected storage space for end-users' documents created using the site's Web-delivered software applications. Documents are retrievable from anywhere in the world and there is no time limit on storage.

The new online small-business services complement Banknorth's launch last year of online banking for its more than 1.5 million customer households. That launch included new web sites for each of its banking affiliates and a strong telephone customer support service component called Customer eCare, unusual in today's e-commerce environment.

"These new tools represent a continuation of the major commitment Banknorth has made to small businesses and state-of-the-art e-commerce over the past two years," said William J. Ryan, chairman, president and chief executive officer of Portland, Maine-based Banknorth Group (NASDAQ: BKNG), one of the 35 largest commercial banking companies in the U.S. with $21.1 billion in assets and nearly 300 branches at banking affiliates in six northeast states. "This site was designed so that small businesses can use it as an operations tool but also as a source of information."

Banknorth Small Business eSource, powered by Smart Online, can assist small business owners in a number of ways, from providing financial analysis to helping develop a sound business plan.

"A solid business plan is important from the bank's perspective as well as for the small business. Besides allowing the bank to take a full look at the business, it also provides an opportunity for the small business to demonstrate what they have going for them, and that's key," said Mark Collins, executive vice president in charge of Banknorth's Small Business Foundations, a team of business specialists dedicated to the company's small business customers. "Also important in this new package of services is the ease by which small businesses can check their balance, pay bills and actually conduct their banking business and transactions online. It's a great time-saver, and very convenient."

"Banks are among the most trusted business partners for business owners," said Thomas Furr, vice president of Smart Online. "By using our model, we have helped enhanced Banknorth's relationship with its customers with our value added products."

The eSource program is available to any small business, whether or not they have an account with the bank.

The new site offers advanced security features such as those introduced last year for Banknorth's launch of online banking for consumers, including 128-bit encrypted technology, strict internal guidelines and an entire back up system for each component in the e-commerce arena. Also, to further protect privacy and business security, a Banknorth representative will personally assist small business owners in the enrollment process.

"A manual enrollment process gives our customers an added layer of security as well as a personal touch, ensuring their needs are met," Collins said.

Banknorth Group (NASDAQ: BKNG) is a $21.1 billion banking and financial services company. Its banking subsidiary, Banknorth NA, conducts banking operations through the following divisions: Peoples Heritage Bank in Maine, Bank of New Hampshire, Banknorth Massachusetts, Banknorth Vermont, Banknorth Connecticut, and Evergreen Bank in upstate New York. The company and its banking affiliates also operate subsidiaries in insurance (Banknorth Insurance Group), investments (Bancnorth Investment Planning Group, Inc.), a money management firm (Banknorth Investment Management Group, NA), and a leasing company (Banknorth Leasing). Other subsidiaries and divisions provide services in mortgage banking, asset-based lending, private banking, merchant services and other financial services. For more information about Banknorth, visit the company online at www.banknorth.com.

Smart Online, Inc. offers the industry's broadest array of Web-delivered business productivity applications that power the start-up, growth and management of small and medium-size enterprises across the U.S. and Europe. Smart Online's Web-native applications have recently been recognized by PC Magazine as a leader in the industry. These applications can be rapidly and seamlessly integrated into partners' Web sites, greatly enhancing the value of partners' e-relationships with their end-users. Smart Online is a privately held company with headquarters in Durham, N.C., and offices in France. For more information about Smart Online, Inc. please visit the company's Web site at www.smartonline.com.

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