Bermuda Commercial Bank - Proposed Amalgamation Update

Hamilton, Bermuda – 30 June, 2010 – Bermuda Commercial Bank Limited (“BCB”) announces that the conditional agreement between Permanent Investments Limited (“Permanent”), who is the majority shareholder in BCB, and First Bermuda Group Limited (“FBG”) has lapsed and consequently the three directors of FBG appointed to the BCB Board have stepped down. Mr. Greg Reid has been reappointed to the Board of BCB.

Proposed Amalgamation of BCB with FBG

As previously announced Permanent entered into a conditional agreement with FBG to acquire all of the common and preferred shares of FBG by way of a tender offer or amalgamation. This agreement contained a termination date of 30 June, 2010 and as the agreement has not been completed by this date it has lapsed. Permanent, BCB and FBG will continue to discuss a possible amalgamation and a further announcement will be made to shareholders in due course if appropriate.

Changes to the Board of BCB

Following the lapse of the conditional agreement with FBG the three directors of FBG, Jeff Conyers, Eugene Bean, and Nicholas Warren, who were appointed to the Board of BCB in anticipation of the amalgamation, have stepped down from the BCB Board.

Mr. Greg Reid, who currently serves as the CFO of BCB has been reappointed to the BCB Board.

About Permanent Investments Limited

Permanent Investments Limited is a Bermuda exempted company that is owned and funded by a group of four investment funds and investment companies.

About Bermuda Commercial Bank

Bermuda Commercial Bank is one of Bermuda’s four licensed banks, established in 1969 and listed on the Bermuda Stock Exchange. Bermuda Commercial Bank is a corporate and private wealth bank, offering a range of services through its subsidiaries International Corporate Management of Bermuda, BCB Trust Company Limited, Bercom Nominees Limited and BCB (Mauritius) Limited. Bermuda Commercial Bank takes pride in ensuring clients’ assets are safely and professionally managed at its Hamilton based office. For more information on the Bank please visit its website www.bcb.bm.

About First Bermuda Group

First Bermuda Group is the only licensed deposit company in Bermuda regulated under the Banks and Deposits Act 1999. It provides services to both local and international clients, including savings and deposit products, mortgages, and high quality, cost effective investment products. It is also a listing and trading member of the BSX. For more information about FBG please visit its website at www.fbg.bm

For further information please contact:

J. Michael Collier, Chairman

Permanent Investments Limited                     (441) 296-1780

jmcollier@logic.bm

Horst Finkbeiner

Chief Operating Officer

Bermuda Commercial Bank Limited              (441) 299-2873

hfinkbeiner@bcb.bm