Peoples Heritage Dividend up 9%

Portland, Maine, January 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, to be paid on February 14, 2000 to shareholders of record on February 4, 2000, was voted by the Company's Directors in reflection of earnings of $45.6 million, or 44 cents per diluted share, for the quarter ended December 31, 1999.

Peoples Heritage Financial Group is a multi-state banking and financial services holding company. Its subsidiary banks include Peoples Heritage Bank, with the top market share in Maine, Bank of New Hampshire, with the leading market share in New Hampshire, Family Bank, one of the six largest banks in Massachusetts and Glastonbury Bank & Trust in Connecticut. The Company and its affiliate banks also operate subsidiaries in the fields of trust and investments, insurance brokerage, and leasing.

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