April 27, 2000

Earnings Growth of 10 To 12 Percent A Year Cited Today At People's Bank Annual Meeting

BRIDGEPORT, CONN
Shareholders of People's Bank (Nasdaq: PBCT) today were told the company's goal is to "generate earnings growth of 10 to 12 percent a year over the next three to five years" by John A. Klein, chairman and chief executive officer.

Also announced was a 7 percent increase in the quarterly dividend, to 30 cents per share. The dividend is payable on May 15, 2000 to shareholders of record as of May 3, 2000. This marks People's 12th consecutive semi-annual dividend increase since 1993.

Klein, who was named People's president on May 1, 1999, became CEO on October 1, 1999, and chairman on January 1, 2000. In his first address to shareholders at the Annual Meeting, Klein expressed his confidence in the institution and his enthusiasm in leading it.

Explaining that People's is "positioned extremely well for the future," Klein said the bank will continue to solidify its banking presence in Connecticut and will undertake the following steps to help meet its goals.

Klein also stated goals to grow People's national consumer lending business by $300 to $400 million in 2000 and expand its U.S. commercial leasing and U.K. credit card businesses by 20 to 30 percent.

People's chief financial officer, George W. Morriss, reported net income in 1999 exceeded $100 million for the first time, and he pointed out this was the third consecutive year of record earnings. He said, "This earnings growth allowed us to increase our dividend 23 percent in 1999;it now exceeds $1 per share."

Morriss stated, "The main driver for our 1999 earnings was continued double-digit growth in revenues. These revenues were driven by strong growth in deposits and in our lending and fee-generating businesses."

He concluded, "1999 was a very successful year for People's Bank in many respects. We con-tinue to build our core businesses to position ourselves to manage through near-term challenges and will continue to invest in initiatives that will provide long-term growth and fundamental shareholder value."

Shareholders voted with management on all proposals today including the re-election of four directors: George P. Carter, president of Connecticut Foods, Inc.;Jerry Franklin, president and CEO of Connecticut Public Broadcasting Inc.;Eunice S. Groark, former Lieutenant Governor of the State of Connecticut;and James A. Thomas, associate dean of Yale Law School.

Also during the meeting, Klein expressed special appreciation to David E.A. Carson, former chairman, chief executive officer and president, for his 17 years of service and many contributions to People's growth.

People's Bank is a diversified financial services company providing consumer, commercial, in-surance and investment services. The bank is a leader in supermarket banking, with 47 of its 137 branches located in Super Stop & Shop stores. Through its subsidiaries, People's provides broker-age services, money management, equipment leasing and insurance. Nationally, People's is the 17th largest issuer of MasterCard and Visa credit cards. The bank also has an international credit card operation headquartered in Northampton, England.

NOTE: Certain statements contained in this release are forward-looking in nature. These statements are subject to risks and uncertainties that could cause People's actual results or financial condition to differ materially from those expressed in or implied by such state-ments. Factors of particular importance to People's include but are not limited to changes in general economic conditions, and price levels and conditions in the public securities markets generally.

Investor Contact:
Vincent J. Calabrese, first vice president, controller, at 203-338-4114 or vjcalab@peoples.com

Media Contact:
Roberta Burns-Howard, vice president, Corporate Communications, at 203-338-2378 or rjburns@peoples.com.