May 18, 2006

R.C. Knox And Company, Inc. Enters Into Settlement Agreement With State Attorney General's Office Regarding Contingent Commission Inquiry

BRIDGEPORT, CONN. - People's Bank announced today that its insurance subsidiary, R.C. Knox and Company, Inc., has entered into an agreement with the Office of the Connecticut Attorney General regarding the Attorney General's inquiry into insurance company payments of contingent commissions to the firm. R.C. Knox complied fully with the Attorney General's inquiry.

R.C. Knox is the agent of record for the State Insurance Risk Management Board (SIRMB), which has responsibility for obtaining insurance coverage for the State of Connecticut. As agent of record, R.C. Knox helped procure property-casualty insurance for the State.

R.C. Knox believes its receipt of contingent commissions was entirely lawful. R.C. Knox agreed to resolve this matter, without admitting any wrongdoing, on the terms the Attorney General presented in order to avoid the uncertainty and expense of contesting possible claims the Attorney General may have raised in connection with this issue.

Founded in 1842, People's Bank (peoples.com) is one of Connecticut's largest banks with assets of $11 billion, more than 240 ATMs and 154 branches, 71 of which offer convenient seven-day banking in Super Stop & Shop locations across the state. A diversified financial services company, People's Bank provides consumer, commercial, insurance, brokerage, financial advisory and trust services to personal and business banking customers. For more information about People's, its products and services, please call 800-772-1090, visit peoples.com or any of People's branches.