Granite State: Dividend News Release








FOR IMMEDIATE RELEASE



Contact:    William G. Pike
            Executive Vice President & CFO
            (603) 352-1600



                GRANITE STATE BANKSHARES, INC. ANNOUNCES
                         QUARTERLY DIVIDEND

September 9, 1997 -- Keene, New Hampshire -- Granite State Bankshares, 
Inc. today announced that the Board of Directors has declared a regular 
quarterly dividend of $.11 per share of common stock outstanding.  The 
dividend will be payable October 3, 1997 to stockholders of record 
September 19, 1997.

Granite State Bankshares, Inc. is the parent company for Granite Bank, a 
New Hampshire state-chartered commercial bank with offices located in 
Keene, Chesterfield, Peterborough, Milford, Amherst, Durham and 
Portsmouth, New Hampshire.








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