Exhibit 99.1


               [LETTERHEAD OF THE FIRST NATIONAL BANK OF IPSWICH]


FOR IMMEDIATE RELEASE                     Contact:  Russell Cole
December 18, 2006                         The First National Bank of Ipswich
                                          (978) 356-8157


            FIRST IPSWICH BANCORP CONTINUES POSITIVE STRATEGIC MOVES

Ipswich, MA - December 18, 2006 - First Ipswich Bancorp (OTC: FIWC) (the
"Company"), the bank holding company for The First National Bank of Ipswich
("FNBI"), today announced continuing progress in its effort to further increase
revenues, with the goal of growing profitably by the end of the year.

Russ Cole, President and CEO of the Company and the Bank, stated that "There are
some 209 Banks and 246 Credit Unions in Massachusetts, of all sizes. Whether
owned domestically or internationally, all banks provide the familiar, basic
banking products and services. At The First National Bank of Ipswich, we
differentiate ourselves by providing our customers with superior service that
exceeds expectations and ensures financial integrity. This commitment, to serve
our customers, is the most fundamental attribute that will make us successful in
an increasingly competitive environment."

"As part of our long term strategic plan we have taken a number of steps this
year to increase the bank's efficiency. We have restructured staff levels,
addressed our capital ratios and remodeled our security holdings. We hope to
identify additional strategic steps that further increase our earnings. Our hope
is that the fourth quarter will show the favorable results of all of these
efforts."



Commenting on these efforts, Tim Felter, Chief Financial Officer of the holding
company and FNBI, added "While we cannot currently predict earnings for the
fourth quarter, we are confident that the initiatives currently underway will
have a strong positive impact. We will continue to work on rationalizing certain
of the Bank's business lines so that we can put the Bank in the best possible
condition for future earnings growth. The First National Bank of Ipswich is
devoted to serving its customers. We work very hard to meet our customers'
needs. The commitment of the FNBI family to addressing the needs of its
customers is its best asset."

The First National Bank of Ipswich "FNBI was established in 1892. FNBI is the
wholly-owned subsidiary of the First Ipswich Bancorp (OTC: FIWC). FNBI is
headquartered in Ipswich, Massachusetts and additional information on FNBI can
be found on our website at www.fnbi.com.


This press release may contain forward-looking statements within the meaning of
the Private Securities Litigation Reform Act of 1995. Words such as "intends,"
"believes", "expects," "may," "will," "should," "contemplates," or "anticipates"
may indicate forward-looking statements. Investors should be cautious in relying
on such statements because they are subject to a variety of risks,
uncertainties, and other factors that could cause actual results to differ
materially from those expressed in any such forward-looking statements. These
factors include, but are not limited to, statements regarding new business
strategies, the Bank's ability to comply with regulatory requirements, and those
set forth in our most recent annual report on Form 10-KSB and quarterly report
on Form 10-QSB, and other factors detailed from time to time in our filings with
the Securities and Exchange Commission (the "SEC"). The Company undertakes no
obligation to update publicly any forward-looking statements, whether as a
result of new information, future events, or otherwise. For further information,
please refer to the reports and filings of the Company with the SEC.



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