Contact:
     Media Contacts:       FOR IMMEDIATE RELEASE        Investor Contact:


Brent S. Di Giorgio, Shawmut                           Thomas R. Rice
(203) 986-7632                                         (203) 986-4872
Laurie Norris, Northeast
(203) 280-1043

           SHAWMUT NATIONAL CORPORATION TO ACQUIRE NORTHEAST FEDERAL
                        CORP. FOR $172.1 MILLION


HARTFORD, Conn. and BOSTON, Mass., June 13, 1994 -- Shawmut National
Corporation (NYSE: SNC) today announced a definitive agreement to
purchase the $3.6 billion asset Northeast Federal Corp. (NYSE: NSB),
parent of Northeast Savings F.A., for $172.1 million, or $10.875 per
fully diluted share.

Today's acquisition announcement is separate from the cash transaction
announced February 10, 1994 in which Shawmut agreed to purchase 10
Northeast branches located in Massachusetts and Rhode Island.  That
earlier 10-branch transaction closed on Saturday, June 11.

As a result of the transaction announced today, Shawmut will acquire 17
offices in New York, eight offices in Massachusetts, and eight offices
in Connecticut.

This latest transaction is structured as a tax-free merger, with
Northeast Federal shareholders to receive .456 shares of Shamut
National stock for each Northeast Federal share.  The exchange ratio of
Shawmut shares will be adjusted to preserve a value of $10.875 

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Shawmut National to Acquire
Northeast Federal Corporation
For $172.1 Million
Page Two


per Northeast Federal share, up to a maximum exchange ratio of .507 and a
minimum exchange ratio of .415 to reflect the average closing price of
Shawmut stock for the 15 trading days ending on the trading day
immediately prior to the day on which the last regulatory approval has
been obtained and all statutory waiting periods have expired.  The
transaction is expected to be accounted for using purchase accounting.

Shawmut expects to close this latest transaction in the fourth quarter
of this year.

"The acquisition of Northeast Federal gives Shawmut its first branches
outside of New England," said Joel B. Alvord, chairman and chief
executive officer of Shawmut National Corporation.  "By establishing an
attractive presence in New York, where more than half of these branches
are located, this acquisition advances Shawmut's strategy of
diversifying our business profile beyond New England.  In the greater
Albany market, Shawmut will have the number one or two market share in
five of the eight towns served by Northeast.  The acquisition is
expected to be accretive to Shawmut's 1995 earnings, making the deal
attractive to both Shawmut and Northeast shareholders."

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Shawmut National to Acquire
Northeast Federal Corporation
For $172.1 Million
Page Three


"We are pleased to join forces with a premier New England financial 
institution," said Kirk W. Walters, chairman, president, and chief executive 
officer of Northeast Federal Corp.  "Our board of directors believes this
transaction provides an excellent return to our stockholders.  Our
customers will benefit from the added convenience of Shawmut's
substantial retail network and broad product line."

The transaction does not include four California branches Northeast
agreed to sell to Home Savings of America in Irwindale, California. 
Nor does the transaction include the sale of a single Cape Cod branch
Northeast agreed to sell to Sandwich Cooperative several months ago.

The agreement is subject to the approval of Northeast shareholders and
to the approval of regulatory agencies.

With assets of $30 billion, Shawmut National Corporation is a superregional 
bank holding company with a franchise of over 300 branches and nearly 500 
ATMs in four New England states:  Connecticut, Massachusetts, New Hampshire,
and Rhode Island.  It is a leading provider of financial services to 
consumers and small- to medium-sized businesses.  It also

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Shawmut national to Acquire
Northeast Federal Corporation
For $172.1 Million
Page Four


provides financial services to corporate customers, correspondent banks, and
government units throughout New England and in select national markets.

Northeast Federal Corp., with approximately $3.6 billion in assets,
$2.5 billion in deposits, and $1.0 billion in loans, is one of the
largest thrifts in New England.