Banknorth Raises Quarterly Dividend 27% Over Year-Ago Period

Portland, Maine, July 22, 2003 - Banknorth Group, Inc. (NYSE: BNK) announced today that its Board of Directors has approved a quarterly dividend of 19 cents per share based on earnings for the second quarter ended June 30, 2003. The dividend is 27% higher than the quarterly dividend paid following the second quarter a year ago and 19% higher than the dividend paid following the first quarter of 2003.

The dividend will be paid on August 11, 2003 to shareholders of record on August 1, 2003. The Company announced record quarterly net income of $87.5 million, or 53 cents per diluted share, on July 21, 2003.

"In seeking to maximize shareholder value, our Directors were very mindful of the recent reduction in taxation rates for dividends," said William J. Ryan, Banknorth Chairman, President and Chief Executive Officer. "In one step, our Directors have increased the percentage of quarterly earnings paid to shareholders in quarterly dividends from 31% to more than 35%."

"We will continue to evaluate the best use of capital and the best means of enhancing shareholder value from quarter to quarter," Mr. Ryan said.

Banknorth Group, headquartered in Portland, Maine, is a $25.8 billion banking and financial services holding company. The Company's banking subsidiary, Banknorth, N.A. operates banking divisions in Maine (Peoples Heritage Bank), New Hampshire (Bank of New Hampshire), Massachusetts (Banknorth Massachusetts), Connecticut (Banknorth Connecticut), Vermont (Banknorth Vermont), and Upstate New York (Evergreen Bank). The Company also operates subsidiaries and divisions in insurance, investment planning, money management, leasing, merchant services, mortgage banking, government banking and other financial services.

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