Sovereign Bank and State Treasury Announce Initial Results of Massachusetts Job Growth Program

Creation of 150 New Manufacturing, Engineering and Food Service Jobs

At Three Small Businesses in Devens, Mass.

Jun 10, 2005, 01:00 ET from Sovereign Bank

    BOSTON, June 10 /PRNewswire/ -- Sovereign Bank New England CEO Joseph P.
 Campanelli and Massachusetts State Treasurer Timothy P. Cahill today announced
 that three companies in Devens, Mass., will be adding 150 new jobs over the
 next few years. The announcement reflects the first small business loans made
 through the Massachusetts Job Foundation Loan Program, jointly announced in
 February as part of Treasurer Cahill's Job Growth Task Force. Sovereign's
 program provides up to $200 million in low-cost loans to Massachusetts small
     "At Sovereign Bank, we feel strongly that it is our job to be a partner
 with the Commonwealth, to help grow and retain stable jobs. Today's
 announcement shows that by working together to make capital available to small
 business, together we can help them grow and get to the next level of
 success," said Campanelli, who was also a task force member. "The program is
 about creating new jobs, as well as keeping jobs here in Massachusetts," he
     To date, Sovereign has taken applications from approximately 30 companies
 for $65 million in financing that will mean the creation of an estimated 360
 jobs in Massachusetts.
     "There are many small and growing companies in Massachusetts without
 access to capital, and therefore without opportunities to grow, add jobs, and
 put more people to work in the Commonwealth. The Massachusetts Job Foundation
 Loan Program provides the capital necessary to help businesses grow and become
 more competitive," said Treasurer Cahill. "What is particularly notable about
 today's announcement is that these three companies will add valuable, well-
 paying engineering and manufacturing jobs to the area."
     Today's announcement was made at Xinetics Corporation, Devens, Mass.,
 which develops and manufactures precision optical products and systems for the
 U.S. government and other commercial customers.  Xinetics will receive $2.5
 million from the Massachusetts Job Foundation Loan fund and will add up to 40
 new jobs over the next two to three years in the field of engineering and
 other technical areas.   Xinetics was the first company to locate at Devens in
 1996 after it was converted to a commercial center from a former U.S. Army
     "Xinetics is a true success story as one of the pioneer companies to
 locate at Devens," said Xinetics President Mark A. Ealey.  "The financing from
 Sovereign Bank will allow us to expand in the new frontier of nanotechnology
 which may fuel the future economic growth of Massachusetts. When we started
 our business in 1993 with two employees, we could never have envisioned our
 growth to 80 employees today and soon to be more than 100 with the help of
 this financing."
     Another Devens company, Waiteco Machine, is projecting to add seven to ten
 jobs over the next three years with a loan of $2.0 million.  Waiteco was
 recently purchased by new owners, Karl Koch and Peter Mendes, who are also
 veterans of the local high tech industry.  One of the companies that they
 competed with to buy Waiteco was a South American firm, which made no
 guarantees of future job growth or retention of the Devens facility.
     "We are grateful that Waiteco is able to take part in this new loan pool
 and to continue to serve our customers with the finest in precision machining
 technology," said Waiteco President, Karl Koch, adding, "As long time
 Massachusetts residents, we were thrilled to be able to purchase a local
 manufacturing company and help retain these scarce jobs in our state."
 "Without the financing and jobs credit from Sovereign, we would not have had
 the resources needed to invest in the new capabilities required to support the
 job growth," said Waiteco Vice-President Peter Mendes.
     Sovereign also announced the financing of a $4.3 million tax exempt bond
 through MassDevelopment to Barnum Realty, LLC and Devens CPL, LLC of Devens,
 Mass. who will construct a new 22,122-square-foot central baking facility at
 the Devens Industrial Park for Dunkin' Donuts to serve four local franchisees.
 The new facility will produce donuts to deliver to approximately 100 stores
 throughout northeastern Massachusetts.  The project is expected to create
 approximately 100 jobs.  MassDevelopment is the Commonwealth's quasi-public
 economic development authority.
     Sovereign Bank's Massachusetts Job Growth Program provides loans ranging
 from $250,000 to $2.5 million with flexible terms and favorable rates.
 Sovereign has a streamlined application process for rapid decision-making and
 loan funding. The program offers tailored, flexible repayment terms and
 amortization options, including extended terms for real estate and interest-
 only payment options for one year. There are no pre-payment penalties.
     About Sovereign Bank
     Sovereign Bancorp, Inc., ("Sovereign") (NYSE:   SOV), is the parent company
 of Sovereign Bank, a $59 billion financial institution with more than 650
 community banking offices, over 1,000 ATMs and approximately 10,000 team
 members with principal markets in the Northeast United States.  Sovereign
 offers a broad array of financial services and products including retail
 banking, business and corporate banking, cash management, capital markets,
 trust and wealth management and insurance. Sovereign is the 19th largest
 banking institution in the United States. For more information on Sovereign
 Bank, visit or call 1-877-SOV-BANK.
     About Xinetics, Inc.
     Xinetics is a small business, founded in 1993 to preserve critical
 defense-related active materials technologies, for the U.S. Military and other
 commercial customers, to develop them into commercial precision motion-control
 products. Xinetics started in Littleton, Mass, in a single facility of 2,500-
 square-feet. The company currently occupies three buildings with a total of
 130,000-square-feet located in Devens, Mass. For more information visit
     About Waiteco Machine, Inc.
     Waiteco Machine, established in 1982, is a full-service manufacturer and
 assembler of precision machined components. The company serves a variety of
 industries, including semi-conductor, aerospace, wireless microwave,
 automotive and medical. Waiteco features state-of-the-art CNC machine
 technology, stringent quality standards and a unique proactive approach to
 customer service.  For more information visit

SOURCE Sovereign Bank