Banknorth Dividend Up 8% Over Year-Ago Quarter; Increases Buyback Authorization by 5 Million Shares

Portland, Maine, October 23, 2001 - Banknorth Group, Inc. (NASDAQ: BKNG) announced that its Board of Directors has approved a quarterly dividend of 13.5 cents per share based on earnings for the third quarter ended September 30, 2001. The dividend is up 8 percent over that paid following the same quarter a year ago and up 4 percent over the dividend paid following the previous quarter.

The Company's Board of Directors also increased its share repurchase authorization by 5 million shares. The Company has repurchased approximately 5.7 million shares of an 8 million share repurchase program authorized in January. The Company is authorized to repurchase shares in open market transactions as, in the opinion of management, market conditions warrant.

The quarterly dividend will be paid on November 12, 2001 to shareholders of record on October 30, 2001.

"It is important that shareholders share in our earnings success," said William J. Ryan, Company Chairman, President and Chief Executive Officer. Net income for the quarter ended September 30, 2001 was a record 45 cents per diluted share.

Banknorth Group, Inc., headquartered in Portland, Maine, is one of the country's 35 largest commercial banking companies with $18.2 billion in assets. The Company operates banking offices in Connecticut, Maine, Massachusetts, New Hampshire, New York and Vermont.

The Company also operates subsidiaries and divisions in insurance, money management, investments, leasing, government banking, mortgage banking, asset based lending, private banking, merchant services and other financial services.

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