Banknorth Increases Quarterly Dividend

Portland, Maine, July 23, 2002 - Banknorth Group, Inc. (NASDAQ: BKNG) announced today that its Board of Directors has approved a quarterly dividend of 15 cents per share based on record earnings for the second quarter ended June 30, 2002. The dividend is 15% higher than the quarterly dividend paid following the second quarter a year ago.

The quarterly dividend will be paid on August 12, 2002 to shareholders of record on August 2, 2002.

"By increasing the quarterly dividend for the second consecutive quarter, our Board of Directors is maintaining its policy of paying 30% of earnings to shareholders in the form of dividends," said William J. Ryan, Company Chairman, President and Chief Executive Officer. "This is one more means by which we seek to continually create shareholder value."

Banknorth Group, Inc. is a $21.3 billion banking and financial services holding company headquartered in Portland, Maine with operations in Connecticut, Maine, Massachusetts, New Hampshire, Vermont and upstate New York.

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