Exhibit 99.1

                     For Immediate Release
               For Further Information, Contact:
          Brian Arsenault, SVP, Corporate Communications
                          207 761-8517

           Banknorth Receives All Regulatory Approvals
                  To Acquire Ipswich Bancshares
                  Transaction to Close July 26

Portland, Maine, July 18, 2002 - Banknorth Group, Inc. (NASDAQ:
BKNG), a multi-state banking and financial services holding
company headquartered in Portland, Maine, announced today that it
has received all regulatory approvals to complete the acquisition
of Ipswich Bancshares, Inc. (NASDAQ: IPSW) reached  for
approximately $41.1 million in cash and stock.  The acquisition
will be finalized on July 26, 2002.

The Company's Massachusetts banking division, Banknorth
Massachusetts, will increase to 115 branches with over $9 billion
in assets.two Massachusetts banks. The operational conversion of
the acquisition will occur during the second half of 2002.

"As I said when we announced this acquisition, Ipswich is a
natural extension of our Massachusetts franchise and adds some
great communities to our community banking network," said William
J. Ryan, Chairman, President and Chief Executive Officer of
Banknorth Group.  "The Ipswich market is essentially `next door'
to our presence in the Andover, Topsfield and Gloucester market
areas."

Ipswich Bancshares has banking offices in Ipswich, Beverly, North
Andover, Essex, Reading, Rowley, Marblehead and Salem.

The terms of the agreement call for outstanding shares of Ipswich
common stock, other than treasury shares and dissenters' shares,
to be converted into the right to receive $20.50 per share in
cash or a number of whole shares of Banknorth determined by
dividing $20.50 by the average closing prices of the Banknorth
common stock over a specified period, plus cash in lieu of any
fractional share interest.

The terms are subject to election and allocation procedures which
are intended to ensure that 51% of the outstanding Ipswich common
stock will be converted into the right to receive Banknorth
common stock and 49% of the outstanding Ipswich common stock will
be converted into the right to receive cash.  The transaction is
intended to qualify as a reorganization for federal income tax
purposes, with the result that shareholders who exchange their
Ipswich stock solely for Banknorth stock will do so on a tax-free
basis.

2

Banknorth Group, Inc., headquartered in Portland, Maine, is one
of the country's 35 largest commercial banking companies with
total assets of $21.3 billion at June 30, 2002.  The Company's
banking subsidiary, Banknorth, N.A., operates banking divisions
in Maine, New Hampshire, Vermont, New York, and Connecticut, as
well as Massachusetts.

The Company also operates divisions and subsidiaries in
insurance, money management, investment planning and leasing.
Other subsidiaries and divisions provide services in mortgage
banking, government banking, asset based lending, private
banking, merchant services and other financial services.