Bank of Butterfield To Recieve 60/40 Exemption

Hamilton, Bermuda: 18 April 2001 - The Bank of N. T. Butterfield & Son Limited is pleased to announce that the Minister of Finance, The Honourable C. Eugene Cox, JP, MP has advised the Bank that he has instructed the Registrar of Companies Department to prepare a section 114B licence for the Bank. This licence will relieve the Bank of the requirement to uphold 60/40 Bermudian ownership. Although the Bank is well capitalised and has a strong, highly liquid balance sheet, relief from the requirements of the 60/40 rule will enable the Bank to raise additional capital should it be required to facilitate further acquisitions overseas or in Bermuda.

Note to Editors:

Bank of Butterfield Group is a vital community bank in both Bermuda and Cayman and a specialist offshore financial services company that has chosen its markets, knows them well, and uses its knowledge to benefit institutional and individual clients. 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.

For more information call:

Investor Relations:

Richard Ferrett, Executive Vice President and Chief Financial Officer

Tel: (441) 299-1643 Fax: (441) 295-1220 E-mail: richardferrett@bntb.bm

Media Relations:

Karla Lacey-Minors, Vice President, Marketing and Corporate Communications

Tel: (441) 298-6484 Fax: (441) 295-3878 E-mail: klacey@bntb.bm

or

Elizabeth Lewis, Senior Writer/Editor, Marketing and Corporate Communications

Tel: (441) 298-6463 Fax: (441) 295-3878 E-mail: elizabethlewis@bntb.bm