New location enables Eastern to expand Boston operations

BOSTON, Mass., Jan. 28, 2002 – Eastern Bank has signed a long-term lease at 265 Franklin Street in the Financial District, enabling it to expand its headquarters and consolidate offices now spread throughout downtown Boston.

Eastern, the fourth-largest commercial bank in Greater Boston, will occupy about 46,000-square-feet on three adjacent floors in the building. Eastern has options to extend the 15-year lease for 10 years and to acquire additional floors in the building. Owned by Boston Properties, Inc. (NYSE: BXP), 265 Franklin Street is nearing completion of a substantial renovation program.

Eastern is now headquartered at 53 State Street in Boston, with other administrative offices on Milk and Federal streets. All three offices will be moved to 265 Franklin Street.

“We’ve enjoyed enormous growth over the years and our space requirements in Boston have continued to increase,” said Stanley J. Lukowski, Eastern’s chairman and chief executive officer. “We are excited about this opportunity to lease first-class space in the Financial District. We think this move to 265 Franklin Street will enhance our growth opportunities, particularly in the area of commercial banking.”

The new location includes a ground floor branch, which will be Eastern’s 47th and third in Boston. The branch is expected to open in July, pending approval by state regulators.

Eastern has enjoyed strong growth in recent years. Since Jan. 1, 2000, its assets have grown 42 percent to $4 billion and its commercial loan portfolio grew 40 percent to more than $1.3 billion. Next month, Eastern expects to report its tenth consecutive year of record earnings.

Eastern opened a Boston office in 1998, when it moved its commercial banking headquarters to the city. In 2000, Eastern Bank moved its corporate headquarters to Boston, seizing business development opportunities created by major bank mergers. Also in 2000, Eastern added capital markets, international banking and private asset management offices in Boston, while steadily adding positions to commercial lending and other businesses already located in Boston. Last year, Eastern acquired Fantini & Gorga Incorporated of Boston, a leading commercial mortgage brokerage.

“We see this as another step toward expanding our presence in the Greater Boston area,” said Richard E. Holbrook, Eastern’s president and chief operating officer. “This move enhances our customer service abilities and sets the stage for even greater growth in the future.”

Upon completion at the end of February 2002, 265 Franklin Street will boast a new primary entrance defined by a large glass and steel canopy at the corner of Franklin and Oliver streets. In addition, the renovation includes a new marble and wood lobby, upgraded building and elevator systems, and a dramatic new two-story glass lobby wall to replace smaller exterior windows. The 21-story, 326,128-square-foot “Class A” office building occupies a city block bounded by Franklin, High, Oliver and Batterymarch Streets. 265 Franklin Street was acquired by Boston Properties in late 2000.

“We are pleased to welcome Eastern Bank to 265 Franklin Street. This lease re-affirms the desirability of 265 Franklin as well as our effective repositioning of this strategically placed building. With our renovation program nearing completion, we anticipate continued strong leasing interest at 265 Franklin Street,” stated Claude B. Hoopes, senior vice president--marketing, Boston Properties, Inc.

Boston Properties is a fully integrated, self-administered and self-managed real estate investment trust that develops, redevelops, acquires, manages, operates and owns a diverse portfolio of Class A office, industrial and hotel properties. The Company is one of the largest owners and developers of Class A office properties in the United States, concentrated in four core markets: Boston, Washington DC, Midtown Manhattan and San Francisco. To receive Boston Properties’ latest news and corporate developments via fax at no cost, please call 1-800-PRO-INFO; use company code BXP. Visit the Company’s web site at www.bostonproperties.com. Also see www.frbinc.com.

Eastern Bank is a $4 billion full-service banking company with 46 offices in Greater Boston. Eastern’s business lines include consumer banking, corporate lending, capital markets, small business banking, cash management, equipment leasing, private banking, trust and investment management, mortgage banking and consumer finance. For more information, contact: Joe Bartolotta, Public Relations Director, Eastern Bank, (781) 596-4411, or e-mail Joe Bartolotta.