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Bank of Butterfield Cuts Bermuda Dollar Base Rate to 5.25%

20 March 2001

HAMILTON, Bermuda, 20 March, 2001 - Bank of Butterfield announced today that it is reducing its Bermuda Dollar Base Rate by 0.50%, to 5.25%, with effect from Monday 26 March 2001. "We are continuing to pass on the benefits of lower US interest rates to our customers who borrow from us at rates linked to the Bank's Bermuda Dollar Base Rate", said Richard Ferrett, Executive Vice President and Chief Financial Officer. "This is the lowest level that the Bank's Bermuda Dollar Base Rate has been since its introduction in April 1994. We are also reducing our US Dollar Prime Rate to 8.00% effective the same date."

"The Bank will be giving 90 days notice to existing customers with variable rate mortgages of a further decrease in their interest rate by 0.50%, this to take effect from Monday 25 June 2001. Customers with personal loans and mortgages at fixed rates of interest are unaffected by the change."

"The Bank is also please to announce that it has decided not to reduce the interest rates paid to customers with either Strata or Passbook Savings accounts, for the time being," said Mr. Ferrett. "We recognise the importance of these savings accounts to a large section of our customer base and will look to maintain the current interest rate levels paid on these accounts for as long as possible."

For further information contact

Investor Relations: Media Relations:

Richard Ferrett Karla Lacey-Minors

Chief Financial Officer Head of Marketing

Phone: (441) 299-1643 Phone: (441) 298-6484

Fax: (441) 295-1220 Fax: (441) 295-3878

e-mail: richardferrett@bntb.bm e-mail: klacey@bntb.bm