Banknorth Announces Quarterly Dividend Increase

Portland, Maine, January 21, 2003 - Banknorth Group, Inc. (NYSE: BNK) announced today that its Board of Directors has approved a quarterly dividend of 16 cents per share based on record earnings for the fourth quarter ended December 31, 2002. The dividend is 19% higher than the quarterly dividend paid following the fourth quarter a year ago and 7% greater than the dividend paid following the previous quarter.

The dividend will be paid on February 10, 2003 to shareholders of record on January 31, 2003.

"We are pleased to continue our practice of paying out approximately 30% of quarterly net income in shareholder dividends," said William J. Ryan, Banknorth President, Chairman and Chief Executive Officer. Net income for the fourth quarter ended December 31, 2002 was 52 cents per diluted share.

Banknorth Group, headquartered in Portland, Maine, is one of the countryÕs 35 largest commercial banking companies with $23.4 billion in assets at December 31, 2002. The Company's banking subsidiary, Banknorth, N.A. operates banking divisions in Maine (Peoples Heritage Bank), New Hampshire (Bank of New Hampshire), Massachusetts (Banknorth Massachusetts), Connecticut (Banknorth Connecticut), Vermont (Banknorth Vermont), and upstate New York (Evergreen Bank). The Company also operates subsidiaries and divisions in insurance, investment planning, money management, leasing, merchant services, mortgage banking, government banking and other financial services.

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