Bank of Butterfield Launches Bermuda's First Internet Banking Service

Hamilton, Bermuda: 29 March 2001 - Bank of Butterfield today announced Bermuda's first Internet banking service, Butterfield Direct Internet Banking, which will give customers the power, control and convenience of managing their money on their time, 24 hours a day, 365 days a year. Following a successful pilot project, the service has now been launched to a select cross-section of Bank of Butterfield's corporate customers.

"Butterfield Direct is an innovation that adds more value to the Bank's existing services and reinforces our commitment to meeting our customers' needs - anywhere, anytime," said Ed Benevides, Vice President, E-Commerce at Bank of Butterfield.

In the next phase of implementation, all corporate and personal banking customers who use the Bank's current remote banking service will be converted to Butterfield Direct Internet Banking, followed by a launch to the general public.

Butterfield Direct Internet Banking is a secure, user-friendly environment from which registered customers will be able to:

· view a complete portfolio of their accounts in any major currency

· access account information grouped by a specific type (such as chequing, savings or loans)

· pay bills, such as telephone, insurance and cable

· transfer funds between accounts, and

· request chequebooks, wire transfers, bank drafts, manager's cheques and more.

Corporate customers will also be able to:

· set up their own defined account groups (by subsidiary, for example)

· make bulk payments

· perform electronic data interchange (EDI) functions, and

· use "dual authorisation" for added control of who has the authority to perform transactions online.

Further information about Butterfield Direct Internet Banking, including a "Quick Tour" preview is now available on Bank of Butterfield's web site at www.bankofbutterfield.com.

Note to Editors:

Bank of Butterfield Group is a vital community bank in both Bermuda and Cayman and a specialist offshore financial services company. A leader in delivering innovative banking services, Bank of Butterfield offers Bermuda's first Internet banking service; the only 95% mortgages in the local market; special loans for historically listed properties; a flat administration fee for consumer loans; and efficient remote teller technology at its Waterfront €˜Micro Branch.'

The Bank, established in 1858, offers a full range of banking, credit, investment, treasury, trust and custody services through its headquarters in Bermuda, as well as offices in Cayman, Guernsey, Hong Kong and the United Kingdom.

Bank of Butterfield is a publicly traded corporation with its shares listed on the Bermuda and Cayman Islands stock exchanges. The Bank's share price is published daily in the Royal Gazette and is also available on Bloomberg Financial Markets (symbol: NTB.BH) and The Bermuda Stock Exchange web site: www.bsx.com. Further details on the Bank can be obtained from its web site at: www.bankofbutterfield.com.

Media Relations:

Karla Lacey-Minors

Tel: (441) 298-6484

Fax: (441) 295-3878

E-mail: klacey@bntb.bm