BERKSHIRE HILLS BANCORP, INC. COMPLETES ACQUISITION OF
                     BANK BRANCH IN ORISKANY FALLS, NEW YORK


PITTSFIELD,  MA  --  October  22,  2004,  Berkshire  Hills  Bancorp,  Inc.  (the
"Company"),  (AMEX: BHL), the holding company for Berkshire Bank  ("Berkshire"),
announced the completion  today of Berkshire's  purchase of the Oriskany  Falls,
New York, branch of The National Bank of Vernon. The branch acquisition includes
approximately  $8 million in deposits,  real property  related to the branch and
certain  other  related  assets.  No  customer  loans are being  transferred  in
connection  with the  transaction.  Oriskany  Falls is located in Oneida County,
approximately 18 miles southwest of Utica.

The purchase  announced today is Berkshire's  first  full-service  branch in New
York. It also maintains a Representative Office at 54 State Street,  Albany, New
York, which it opened in July of this year.

Commenting on this purchase,  Michael P. Daly,  President and CEO of the Company
and  Berkshire,  stated,  "We look forward to bringing our wide array of banking
services to  businesses  and  consumers  in Oriskany  Falls and the  surrounding
areas.  As a community  bank, we strive to be a leader in  supporting  important
activities in the areas we serve,  and we are of course committed to doing so in
Oriskany  Falls.  Customers  of the  branch  should  also  know  that we  worked
diligently  with  Vernon  so  that  the  transition  will  be  seamless  and any
inconvenience  will be kept to a minimum. I am also pleased to announce that all
of the Oriskany  Falls branch  employees  have been offered  employment by us at
that  location.  This  acquisition  is another  step in  increasing  our banking
franchise in New York."

Berkshire  Hills  Bancorp,  Inc. is the  holding  company  for  Berkshire  Bank.
Established in 1846, Berkshire Bank is one of Massachusetts'  oldest and largest
independent  banks  and is the  largest  banking  institution  based in  western
Massachusetts.  The Bank is headquartered in Pittsfield,  Massachusetts  with 11
branch  offices  serving   communities   throughout   Berkshire   County  and  a
Representative  Office and one branch office in New York.  The Bank is committed
to continuing operation as an independent bank, delivering  exceptional customer
service and a broad array of competitively priced retail and commercial products
to  its  customers.   For  more  information,   call   1-800-773-5601  or  visit
www.berkshirebank.com.


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News  contact:
Michael P. Daly
President & Chief Executive Officer
Berkshire Bank
(413) 236-3194
mdaly@berkshirebank.com