Banknorth Announces Quarterly Dividend

Dividend of 20 cents per share is 5% higher than dividend paid following third quarter last year

PORTLAND, Maine (October 26, 2004) – Banknorth Group, Inc. (NYSE: BNK) announced today that its Board of Directors has approved a quarterly dividend of 20 cents per share based on earnings for the third quarter ended September 30, 2004. The dividend is level with the dividend paid following the second quarter of 2004 and 5% higher than the quarterly dividend of 19 cents per share paid following the third quarter a year ago.

The dividend will be paid on November 15, 2004 to shareholders of record at the close of business on November 5, 2004.

“I am pleased to announce that our dividend once again is in accordance with our practice of returning approximately 35% of net income to shareholders in the form of dividends paid each quarter," said William J. Ryan, Banknorth Chairman, President and Chief Executive Officer.

At September 30, 2004, Banknorth Group, Inc. headquartered in Portland, Maine had $29.0 billion in assets. Banknorth's banking subsidiary, Banknorth, N.A., operates banking divisions in Connecticut (Banknorth Connecticut); Maine (Peoples Heritage Bank); Massachusetts (Banknorth Massachusetts); New Hampshire (Bank of New Hampshire); New York (Evergreen Bank); and Vermont (Banknorth Vermont). The Company and Banknorth, N.A. also operate subsidiaries and divisions in insurance, money management, merchant services, mortgage banking, government banking and other financial services and offer investment products in association with PrimeVest Financial Services, Inc. The Company's website is at www.banknorth.com.

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