CORPORATE FINANCIALS ONLINE Fastest direct links to news from publicly-traded companies.

                      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

Keene, New Hampshire -- September 9, 1998 -- Granite State Bankshares, Inc.
today announced that the Board of Directors has declared a regular
quarterly cash dividend of $ 0.125 per share of common stock outstanding. The
dividend will be payable October 6, 1998 to stockholders of record
September 21, 1998.

Granite State Bankshares, Inc. is the parent company for Granite Bank, a
New Hampshire state-chartered commercial bank with 20 offices operating
throughout southern New Hampshire. Granite Bank is the largest independent
bank in the State of New Hampshire.


Ends.