Peoples Heritage Dividend Up 9% Over Same Quarter 1999

Portland, Maine, April 25, 2000 -- The Board of Directors of Peoples Heritage Financial Group, Inc. (NASDAQ: PHBK) today voted a quarterly dividend of 12.5 cents per share, up 9 percent from the dividend paid in the same quarter a year ago. The dividend will be paid on May 15, 2000 to shareholders of record on May 5, 2000.

Peoples Heritage Financial Group is a multi-state banking and financial services holding company headquartered in Portland, Maine. The Company received all regulatory approvals on April 24 to acquire Banknorth Group, Inc. (NASDAQ:BKNG), headquartered in Burlington, Vermont. The two companies will be merged in May, at which time the Company will take on the Banknorth name and trading symbol. The combined Company will continue to be headquartered in Portland, Maine and will operate banks and financial services subsidiaries in Maine, New Hampshire, Massachusetts, Vermont, Connecticut and upstate New York and have total assets of approximately $18.4 billion.

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