Bank of Butterfield Announces Base Rate Increase

Hamilton, Bermuda, 17 February, 2000 - Following its announcement last month of increases in rates paid to customers with Strata Savings and fixed term Bermuda dollar deposits, Bank of Butterfield announced today that it will be increasing its Bermuda dollar base rate by 0.25%, to 6.50%, with effect from Friday 18 February 2000.

Richard Ferrett, Executive Vice President & Chief Financial Officer commented, "The increase is in keeping with recent interest rate rises in the major world financial markets, most notably in the United States, Canada, and the United Kingdom, but will only affect those customers whose borrowings are at variable interest rates linked directly to the Bank's Bermuda dollar base rate."

He continued, "The Bank will be giving 3 months notice to existing customers with variable rate residential mortgages of an increase in their interest rate by 0.25%, to 9.50%, to take effect from Monday 22 May, 2000. Customers with personal loans and mortgages at fixed rates of interest are unaffected by the changes."

Note to Editors for information:

As at Friday 18 February 2000 the Bank of Butterfield's Base rates will be:

Bermuda dollar Base Rate: 6.50%

US dollar Prime Rate: 8.75%

Canadian dollar Base Rate: 6.75%

United Kingdom Pounds Sterling Base Rate: 6.00%