JUNE 29, 2001

People's Bank Reports Growth
in New Account Assets
Invested with Its Brokerage Subsidiary

BRIDGEPORT, CONN.
People’s Bank (Nasdaq:PBCT) today reported significant increases in new accounts and dollars invested with its brokerage subsidiary, People’s Securities, Inc. People’s noted that this growth has taken place at People’s Securities locations in the bank’s traditional and Stop & Shop branches as well as in its revolutionary People’s Financial Centers.

The total assets in new People’s Securities accounts opened through the bank’s 143 branches are up 17 percent on a year-over-year basis. People’s Securities continues to experience growth in new customer assets even though trading activity, mirroring the national trend, is down.

“More and more people are turning to People’s for guidance and advice,” said Bryan J. Huebner, executive vice president, Consumer Financial Services, at People’s. “We are confident that the investments we are making in equipping our Financial Centers and branch staff to handle customer needs will translate to higher levels of trading activity when market conditions improve.”

People’s credits these results to the considerable investments it has been making in People’s Securities over the past two quarters as People’s Bank transforms its service delivery network and reinforces People’s position as a trusted source for all the financial services its customers need.

People’s Financial Centers
To date, People’s has opened seven revolutionary People’s Financial Centers, including the Shelton Financial Center in June. The typical brokerage account opened in a financial center is, on average, 40 percent larger than that opened in a traditional or supermarket branch. People’s plans to open three more Financial Centers by the end of 2001 and another six in 2002 for a total of 16.

“Our Financial Centers have full-service People’s Securities offices staffed with seasoned investment professionals and are equipped with the latest technology in addition to People’s full menu of banking products and services,” said Robert R. D’Amore, executive vice president, Marketing and Regional Banking, at People’s.

Training Branch Staff
People’s is also investing in training its branch staff to provide customers with financial services in each of the bank’s 143 branches, including People’s 53 seven-day-a-week, highly successful Stop & Shop offices. As a result, the average size of a new People’s Securities account opened in a branch has jumped 55 percent year-over-year.

“More and more customers are coming to us to take advantage of the investment expertise we’re building in our branches,” D’Amore said. “Unlike some of our larger national competitors who won’t talk to anyone who doesn’t have at least $100,000 to invest, we believe every customer is important and we can provide a lot of value to people who need advice to plan for their future.”

By the end of the year, People’s expects to complete the deployment of licensed investment representatives in each of its branches, including its Stop & Shop branches and its People’s Financial Centers.

About People’s
People’s (peoples.com) is a diversified financial services company providing commercial, consumer, insurance and investment services. Founded in 1842, it is the largest state-chartered bank in Connecticut with managed assets of $14 billion, 143 branches and 220 ATMs. People’s is a leader in consumer and commercial banking, residential lending, insurance sales, supermarket banking and is the nation’s 16th-largest issuer of MasterCard and Visa credit cards. People’s subsidiaries offer brokerage services, asset management, equipment financing and leasing, and insurance services.