FOR IMMEDIATE RELEASE                                           January 11, 2005

Contact:        Amy L. Timmerman, AVP, Investor Relations - 781-221-6396
                John A. Simas, EVP and CFO - 781-221-6307
                FAX: (781) 221-7594

                     SHAREHOLDERS OF BOSTONFED BANCORP, INC.
                    APPROVE MERGER WITH BANKNORTH GROUP, INC.

BURLINGTON, MA - BostonFed Bancorp, Inc. (AMEX: BFD), the parent of Boston
Federal Savings Bank, a federally chartered stock savings bank, announced today
that its shareholders overwhelmingly approved the pending merger with Banknorth
Group, Inc. (NYSE: BNK), Portland, Maine, at a meeting held today. The merger is
expected to close on January 21, 2005 and all requisite regulatory approvals
have been received.

This report may contain certain forward-looking statements, which are based on
management's current expectations regarding economic, legislative and regulatory
issues that may impact the Company's earnings in future periods. Factors that
could cause future results to vary materially from current management
expectations include, but are not limited to, general economic conditions,
changes in interest rates, deposit flows, real estate values and competition;
changes in accounting principles, policies or guidelines; changes in legislation
or regulation; and other economic, competitive, governmental, regulatory and
technological factors affecting the Company's operations, pricing, products and
services. The Company does not undertake, and specifically disclaims any
obligation, to publicly release the result of any revisions which may be made to
any forward-looking statements to reflect events or circumstances after the date
of such statements or to reflect the occurrence of anticipated or unanticipated
events.