Special Loan Program Created for Small Businesses Affected by Recent Storms
Benefits include credit lines below Prime rate and decisions within 24 hours

BOSTON, May 18, 2006 – To provide immediate assistance to businesses affected by the heavy downpours and subsequent flooding, Eastern Bank announced today that it has created a special loan program featuring special interest rates and an expedited review process.

“The rain may have subsided, but it’s clear that this storm and the devastating floods it created will be felt by businesses for quite some time,” said Joseph F. Riley, senior vice president for retail and small business banking at Eastern.  “We wanted to make sure that these businesses know that they have a ready, willing and able partner in the recovery process.”

Under the program, small businesses will be eligible for either one of two loan products, including an unsecured line of credit featuring:

• A credit line up to $50,000;
• Interest rate of Prime minus 1% (now 7%);
• Activation fee is waived (a savings of $150);
• Decision on the application within 24 hours.

Eastern is also offering an unsecured term loan featuring:

• A term of up to five years;
• Interest rate fixed at 8%;
• Interest-only payments for the first 12 months;
• Activation fee waived (a savings of $150);
• Decision on the application within 24 hours.

The program is open to businesses with annual sales up to $5 million that were affected by the storms, or the flooding that ensued, starting May 12, 2006.  To find out more or apply for a special line or loan, business owners can visit any Eastern Bank branch location or call 1-800-EASTERN (327-8376).

About Eastern Bank Corporation
Founded in 1818 and based in Boston, Eastern Bank is the largest independent, mutually owned commercial banking franchise in New England. With more than $6 billion in assets and more than 70 branches stretching from Merrimack Valley to Cape Cod, Eastern offers superior service, convenience and a full range of financial products for consumers, businesses, investors, government agencies and not-for-profit organizations.  Its subsidiaries are Eastern Insurance and Fantini & Gorga, a real estate advisory firm. 

For more information, contact Joe Bartolotta, Public Relations Director,
Eastern Bank (781) 596-4411, or e-mail Joe Bartolotta.