Banknorth Increases Quarterly Dividend

PORTLAND, Maine (July 27, 2004) – Banknorth Group, Inc. (NYSE: BNK) announced today that its Board of Directors has increased the Company's quarterly dividend to 20 cents per share based on earnings for the quarter ended June 30, 2004. The dividend increase represents a .5 cent per share increase over the quarterly dividend paid following the previous quarter ended March 31, 2004 and a 1 cent per share increase over the quarterly dividend paid a year ago following the quarter ended June 30, 2003.

"I am pleased to increase our dividend once again 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.

The dividend will be paid on August 16, 2004 to shareholders of record at the close of business on August 6, 2004.

At June 30, 2004, Banknorth Group, Inc., headquartered in Portland, Maine and one of the 30 largest commercial banks in the country, had $29.3 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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