March 5, 2004

People's Bank Announces The Reference Yield For The Tender For Its 7.20% Subordinated Notes Due 2006 And 9.875% Subordinated Notes Due 2010

BRIDGEPORT, CONN. - People's Bank (NASDAQ: PBCT), an $11 billion financial services company and the largest independent state-chartered institution in Connecticut, today announced the reference yield for its previously announced 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) (collectively, the "Notes").

People's will pay a price on the settlement date equivalent to a yield to maturity equal to the sum of (a) the reference yield and (b) the fixed spread, set out above, plus accrued interest up to, but excluding, the date of payment. Assuming a settlement date of March 10, 2004 for the Notes tendered before 5:00 p.m., New York City time, on March 9, 2004, the purchase price would be as set out above, plus accrued interest on the Notes up to, but excluding, the date of payment.

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.