March 1, 2004

People's Bank Announces Tender For Subordinated Notes Due 2006 And 2010

BRIDGEPORT, CONN.- People's Bank (NASDAQ: PBCT), a $12 billion financial services company and the largest independent state-chartered institution in Connecticut, today announced that it has commenced a cash tender offer for all $105,110,000 outstanding principal amount of its 7.20% Subordinated Notes due 2006 (CUSIP No. 710198EP3) and for all $150,000,000 outstanding principal amount of its 9.875% Subordinated Notes due 2010 (CUSIP No. 710198HE5).

People's may amend, extend or, subject to certain conditions, terminate the tender offer. The terms and conditions of the tender offer, including the conditions of People's obligation to accept the notes tendered and pay the purchase price for them, are set forth in an Offer to Purchase dated March 1, 2004.

The tender offer will expire at 5:00 PM New York City time on Tuesday, March 9, 2004, unless extended or earlier terminated (as that date may be extended, the "Expiration Time"). No tenders will be valid if submitted after the Expiration Time. The price offered will be based on the yield to maturity corresponding to the market price two trading days prior to the Expiration Time of U.S. Treasury securities with a coupon of 2.625% due November 15, 2006 for the 2006 Notes and with a coupon of 5.75% due August 15, 2010 for the 2010 Notes, respectively, plus a fixed spread of 25 basis points for the 2006 Notes and 75 basis points for the 2010 Notes. All payments will include accrued and unpaid interest on the principal amount tendered to, but not including, the payment date.

The tender offer is subject to a number of conditions, including consummation of the previously announced sale transaction with The Royal Bank of Scotland Group and the approval by the Federal Deposit Insurance Corporation of the purchase of the subordinated notes pursuant to the terms of the tender offer.

People's has retained Goldman, Sachs & Co. to act as sole Dealer Manager in connection with the tender offer. Questions regarding the tender offer and requests for documents may be directed to Goldman, Sachs & Co. at (800) 828-3182 (toll free) or (212) 357-3019 (collect) or Global Bondholder Services Corporation, the Information Agent, at (866) 873-6300 (toll free).

This press release does not constitute an offer to purchase or solicitation of an offer to sell with respect to the notes. That offer or solicitation will be made only by means of the Offer to Purchase.