August 18, 2006

PEOPLE'S BANK CONVERTS TO A FEDERALLY-CHARTERED SAVINGS BANK

BRIDGEPORT, CONN. - People's Bank announced today that it has completed its conversion from a Connecticut-chartered savings bank to a federally-chartered savings bank, streamlining the bank's ability to branch in or acquire financial institutions in other states. In May, concurrent with its charter conversion announcement, People's Bank announced plans to open at least 15 branches in Westchester County, New York in the next three years, with seven planned by the end of 2007.

The Office of Thrift Supervision, People's regulator under the federal charter, approved the charter change on July 3. The Connecticut State Department of Banking issued its approval on August 10 and on August 15, People's Bank shareholders voted to approve the charter conversion in a special shareholders' meeting in Bridgeport.

"Converting to a federal savings bank charter will provide People's with significant flexibility and eliminate hurdles to growing our businesses across state lines," People's Bank President and Chief Executive Officer John A. Klein said. "The same is true for our acquisition plans in contiguous and near-contiguous markets. Overall, our charter conversion will be a key driver of the bank's continued financial strength, independence and growth."

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 156 branches, 73 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.