UST CORP. ANNOUNCES DEFINITIVE AGREEMENT
                          TO SELL UST BANK/CONNECTICUT


     BOSTON, MASS. August 16, 1996. UST Corp. (NASDAQ: USTB) announced today
the execution of a definitive agreement to sell its Connecticut banking
subsidiary, UST Bank/ Connecticut to HUBCO, Inc., a New Jersey based bank
holding company. UST Bank operates four offices in Fairfield County with total
assets of approximately $110 million.

     "We are pleased to have been associated with the customers, directors and
employees of UST Bank/Connecticut," stated Neal F. Finnegan, president and
chief executive officer. "The sale of our Connecticut subsidiary, however, will
allow us to focus our resources on the pending acquisition of twenty Boston
area BayBank and Bank of Boston branches with banking resources of $860 million
which will give our Massachusetts banking subsidiary, USTrust, the third
largest branch network in greater Boston, and enable UST to become a stronger
Boston based banking company."

     At the completion of the transaction, UST Bank/Connecticut will be merged
with and into HUBCO's subsidiary, Lafayette American Bank and Trust Company of
Bridgeport, Connecticut. The Agreement and Plan of Merger provides, among other
matters, that UST Corp. will receive cash in an amount equal to UST
Bank/Connecticut's Adjusted Tier 1 Capital, as defined in the Agreement, plus a
deposit premium of 7%.

     The transaction is expected to be completed in the first quarter of 1997,
and is subject to the receipt of necessary regulatory approvals.

     UST Corp. is a $2.0 billion Boston-based bank holding company. Through its
banking and nonbanking subsidiaries, the Company provides a broad range of
financial services, principally to individuals and small- and medium-sized
businesses in New England.

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