November 1, 2004

R.C. Knox Responding To Request For Information From Connecticut Attorney General

BRIDGEPORT, CONN. - R.C. Knox and Company, Inc., a wholly-owned insurance agency subsidiary of People's Bank (NASDAQ: PBCT), has received a subpoena from the Office of the Connecticut Attorney General. The company is cooperating fully with the Attorney General and is preparing its response. The subpoena requests copies of documents and other information from the company and does not allege any illegal conduct by R.C. Knox. It is part of a continuing investigation by the Attorney General's office into possible violations of Connecticut's antitrust laws in the insurance industry and requests information on contingent commission agreements and bidding practices.

Recent press reports indicate that similar subpoenas have been issued by the Connecticut Attorney General to at least 35 companies involved in the insurance industry, including brokers, agents, and carriers.

"R.C. Knox has a number of contingent commission agreements with insurance carriers," said Valerie Carlson, spokesperson for R. C. Knox. "These agreements are generally standard agreements written by the insurance carriers and the compensation R.C. Knox receives under these agreements is typically based on the claims experience of the insureds and the volume of the business written."

"These agreements are legal in the state of Connecticut and have long been a standard feature in the insurance marketplace," she said.

"In light of recent press coverage of bid-rigging by national insurance brokers, we wish to make it clear that it has never been Knox's policy to submit or ask for fictitious, inflated or sham bids and, to the best of our knowledge, this practice has never occurred at the company."