People's Bancshares, Inc. and the Smyth Group Agree to End Proxy Contest

Apr 25, 2001, 01:00 ET from People's Bancshares, Inc.

    NEW BEDFORD, Mass., April 25 /PRNewswire Interactive News Release/ --
 People's Bancshares, Inc. (Nasdaq:   PBKB) and a group of its stockholders led
 by Vincent A. Smyth (the "Smyth Group") jointly announced today that they have
 entered into a definitive Agreement resolving various issues arising out of a
 proxy contest recently commenced by the Smyth Group.  The Smyth Group had
 sought to elect three representatives to the Company's board of directors at
 the Company's upcoming Annual Meeting of Stockholders.  The Agreement
 terminates the proxy contest and provides that, immediately following its
 Annual Meeting of Stockholders scheduled for June 12, 2001, the Company will
 increase the size of its board of directors from 10 to 13 members.  Subject to
 the receipt of required nonobjection letters from bank regulators, the Company
 will add Mr. Smyth and two individuals designated by Mr. Smyth to its board of
 directors and to the board of the Company's principal subsidiary, People's
 Savings Bank of Brockton.  The two additional directors designated by Mr.
 Smyth are Thomas F. Gillen and William G. Foster, Jr.
    The Company has entered into the definitive Agreement with the Smyth Group
 in order to avoid the expense and diversion of management attention that would
 have been required in order to defend the proxy contest.  The board of
 directors of the Company has decided instead to focus the use of its
 management and financial resources toward addressing the previously disclosed
 liquidity, interest rate risk and other matters raised by the Company's bank
 regulators during 2000, as well as other strategic issues.
     The Smyth Group has further agreed that they will vote for the nominees
 for director recommended by the Company's board of directors; and will vote in
 accordance with the recommendation of the Company's board with respect to each
 matter that is presented to the Company's stockholders at the 2001 Annual
 Meeting of Stockholders.
    Mr. Smyth is a partner in the Huntington, New York law firm of Smyth &
 Lack; Mr. Gillen is a stockbroker with the firm of F. J. Morrissey & Co.,
 Inc., Philadelphia, Pennsylvania; and Mr. Foster is a consultant and private
 investor who resides in Fairfax, Virginia.
     People's Bancshares, Inc. is the holding company for People's Savings Bank
 of Brockton and People's Mortgage Corporation.  Through its subsidiaries, the
 Company operates twelve banking locations in Southeastern Massachusetts and
 twelve mortgage loan production offices in Massachusetts, Rhode Island,
 Connecticut, Maryland and Virginia.  The total assets of the Company are
 approximately $941 million.
 
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SOURCE People's Bancshares, Inc.
    NEW BEDFORD, Mass., April 25 /PRNewswire Interactive News Release/ --
 People's Bancshares, Inc. (Nasdaq:   PBKB) and a group of its stockholders led
 by Vincent A. Smyth (the "Smyth Group") jointly announced today that they have
 entered into a definitive Agreement resolving various issues arising out of a
 proxy contest recently commenced by the Smyth Group.  The Smyth Group had
 sought to elect three representatives to the Company's board of directors at
 the Company's upcoming Annual Meeting of Stockholders.  The Agreement
 terminates the proxy contest and provides that, immediately following its
 Annual Meeting of Stockholders scheduled for June 12, 2001, the Company will
 increase the size of its board of directors from 10 to 13 members.  Subject to
 the receipt of required nonobjection letters from bank regulators, the Company
 will add Mr. Smyth and two individuals designated by Mr. Smyth to its board of
 directors and to the board of the Company's principal subsidiary, People's
 Savings Bank of Brockton.  The two additional directors designated by Mr.
 Smyth are Thomas F. Gillen and William G. Foster, Jr.
    The Company has entered into the definitive Agreement with the Smyth Group
 in order to avoid the expense and diversion of management attention that would
 have been required in order to defend the proxy contest.  The board of
 directors of the Company has decided instead to focus the use of its
 management and financial resources toward addressing the previously disclosed
 liquidity, interest rate risk and other matters raised by the Company's bank
 regulators during 2000, as well as other strategic issues.
     The Smyth Group has further agreed that they will vote for the nominees
 for director recommended by the Company's board of directors; and will vote in
 accordance with the recommendation of the Company's board with respect to each
 matter that is presented to the Company's stockholders at the 2001 Annual
 Meeting of Stockholders.
    Mr. Smyth is a partner in the Huntington, New York law firm of Smyth &
 Lack; Mr. Gillen is a stockbroker with the firm of F. J. Morrissey & Co.,
 Inc., Philadelphia, Pennsylvania; and Mr. Foster is a consultant and private
 investor who resides in Fairfax, Virginia.
     People's Bancshares, Inc. is the holding company for People's Savings Bank
 of Brockton and People's Mortgage Corporation.  Through its subsidiaries, the
 Company operates twelve banking locations in Southeastern Massachusetts and
 twelve mortgage loan production offices in Massachusetts, Rhode Island,
 Connecticut, Maryland and Virginia.  The total assets of the Company are
 approximately $941 million.
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X35112417
 
 SOURCE  People's Bancshares, Inc.