For Immediate Release
MARCH 16, 2000                   For Further Information Contact:
                                                       Francis Kenney, SVP & CFO
Ipswich Bancshares, Inc.                                          (978) 356-7777
23 Market Street                                or log on to www.ipswichbank.com
Ipswich, MA  01938                   and click the "investor information" button

                               IPSWICH BANCSHARES

                         10% SHARE REPURCHASE ANNOUNCED;

                      DECLARES $.10 QUARTERLY CASH DIVIDEND

Ipswich,  Massachusetts (NASDAQ: IPSW). Ipswich Bancshares,  Inc., a single bank
holding company for IpswichBank  today announced that the Board of Directors has
authorized the repurchase of up to 252,543 shares of common stock (approximately
10%  of  the  company's   outstanding  common  stock)  in  privately  negotiated
transactions or open market purchases in accordance with applicable  regulations
of the Securities and Exchange Commission. The Board delegated to the discretion
of Ipswich Bancshares,  Inc.'s senior management, the authority to determine the
timing of the  repurchase  program's  commencement,  the  timing  of  subsequent
purchases and the prices at which repurchases will be made.  Ipswich  Bancshares
may  repurchase  its common stock without  further Board  authorization  for one
year.

Stated  David  Grey,  President  and  Chief  Executive  Officer,  "The  Board of
Directors  and  management  of Ipswich  Bancshares  are  committed  to enhancing
shareholder value. This stock repurchase program is being implemented to provide
management  with an  additional  tool to optimize  the  company's  use of equity
capital.  Ipswich Bancshares,  Inc.'s capital position and strong  profitability
have both contributed to the initiation of this new program".

Additionally,  the Board of Directors  of Ipswich  Bancshares,  Inc.  declared a
quarterly  cash  dividend of $.10 per share.  The dividend is payable  April 20,
2000 to stockholders of record at the close of business on April 6, 2000.

Ipswich Bancshares, Inc. is a Massachusetts chartered stock holding company with
$276  million in assets at  December  31,  1999.  Its  subsidiary,  IpswichBank,
presently   operates  eight   full-service   banking   offices,   including  its
headquarters in Ipswich,  Massachusetts.  The Bank's deposits are insured by the
Federal Deposit Insurance Corporation and the Depositors Insurance Fund.