Banknorth Increases Quarterly Dividend

Portland, Maine, January 27, 2004 - Banknorth Group, Inc. (NYSE: BNK) announced today that its Board of Directors has increased the Company's quarterly dividend to 19.5 cents per share based on earnings for the fourth quarter ended December 31, 2003. The dividend is 22% higher than the quarterly dividend paid following the fourth quarter a year ago and a half cent per share higher than the dividend paid the previous quarter ended September 30, 2003.

"By this vote, our Directors continue the Company's practice of returning 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.

The dividend will be paid on February 16, 2004 to shareholders of record on February 6, 2004. The Company recently announced record quarterly net income of $91.6 million, or 55 cents per diluted share,for the quarter ended December 31, 2003.

Banknorth Group, headquartered in Portland, Maine, is one of the country's 35 largest commercial banking companies with $26.5 billion in assets. The Company'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 offers investment products in association with PrimeVest Financial Services, Inc. The CompanyÕs website is at www.banknorth.com

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