CONTACT: Mary Ann Wilson, People's Bancshares, Inc. (508)991-2771
FOR IMMEDIATE RELEASE
INSTUTIONAL SHAREHOLDER SERVICES RECOMMENDS SUPPORT FOR THE
BOARD OF PEOPLE'S BANCSHARES
New Bedford, MA June 9, 2000 - People's Bancshares, Inc. (NASDAQ: PBKB) today
announced that Institutional Shareholder Services (ISS) has recommended that
shareholders vote FOR the Company's slate of nominees to the Board and AGAINST
the nominees of the dissident Kingston Group. People's Annual Meeting of
Stockholders is scheduled for June 16, 2000.
Institutional Shareholder Services, based in Rockville, MD, is an independent
advisor to institutional investors and provides proxy research, proxy voting
recommendations and voting agent services.
In its report ISS concludes that it "finds little reason to support the
dissident campaign, based upon the following: (1) the company has not
underperformed its peers from an operating perspective; (2) the company's stock
price has substantially outperformed both its peer group and the broader market
over the longer term; (3) lack of management entrenchment; and (4) the low
valuations assigned to savings banks may make it an inopportune time for a
sale."
ISS also notes that "Over the three- and five-year periods ending Dec. 31, 1999,
PB (People's Bancshares) shareholders have enjoyed total returns of 21.5 percent
and 32.8 percent, respectively, versus 12.1 percent and 21.9 percent for the
NASDAQ Bank Index. Over the same time period, the SNL Securities New England
Thrift Index returned only 10.2 percent and 24.0 percent, respectively."
Richard S. Straczynski, President and Chief Executive Officer of People's
Bancshares, said, "This endorsement from ISS comes on the heels of yesterday's
positive recommendation from Proxy Monitor. We are obviously very pleased that
professional advisors, who have no ties to either side in this proxy contest,
have examined the points put forth by both the Board and the Kingston Group,
have looked at the performance of the Company and the current management team
and concluded that the best interests of the shareholders are served by the
reelection of our Board's nominees and not by the Kingston Group. We urge all
shareholders to support the current Board and vote only the WHITE proxy card."
People's Bancshares, Inc. is a unitary bank holding company whose principal
business consists of People's Savings Bank of Brockton, an FDIC insured savings
bank headquartered in Easton, MA. People's Mortgage Co., the primary subsidiary
of the bank, conducts business in six states. People's Bancshares can be found
on the Web at www.peoplessavingsbank.com.
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