Peoples Federal Savings Bank, Brookline Cooperative Bank
announce plan to consolidate

BRIGHTON, MASSACHUSETTS, March 15, 2007 …… Peoples Federal Savings Bank of Brighton and Brookline Cooperative Bank in Brookline have agreed to consolidate the two institutions into one larger community bank more strategically positioned to serve the residents and businesses in the markets they currently serve.

A joint announcement of the consolidation plan was made today by Thomas J. Leetch, president and chief executive officer of Peoples Federal Savings Bank, and Paul W. Brackett, president and chief executive officer of Brookline Cooperative Bank.

The combined bank, operating as Peoples Federal Savings Bank, will consist of six full-service offices located in Brookline, Brighton, Allston, West Roxbury, Jamaica Plain, and Norwood. Leetch and Brackett stressed that, because the consolidation represents an expansion of service and creates no employment redundancies, no jobs will be eliminated as a result.

Customers of the two institutions will have the advantage of expanded hours and service offerings and easier access to their accounts, as well as continued use of ATMs in the SUM program. Deposits will be insured by the Federal Deposit Insurance Corporation (FDIC).

Peoples Federal Savings Bank, a federally chartered savings bank, was established in 1888. The Bank has $310 million in assets in its five locations. Brookline Cooperative Bank, founded in 1895, is a state-chartered co-operative bank with assets of $60 million. Brookline Cooperative maintains a single location at 264 Washington Street in Brookline.

The consolidation is subject to a vote of the depositors of Brookline Cooperative Bank and the necessary regulatory approvals. It is expected to be completed during the third quarter 2007. Leetch will serve as president and chief executive officer of the consolidated bank, with Brackett serving in a consulting role. Four directors from Brookline Cooperative Bank will serve as directors on the Peoples Federal Savings Bank board, and the other Brookline Cooperative Bank directors will be joining a Peoples Federal Savings Bank Advisory Board.

Advantages
“We are pleased with this unique opportunity to introduce the Peoples Federal Savings Bank brand to the Brookline market,” said Leetch, “and to provide our business and residential customers with greater banking opportunities.

“By the same token, the consolidation will greatly enhance the banking experience for current Brookline Cooperative Bank customers, providing them with a number of new branch locations, and an expanded range of products and services,” said Leetch.

“Peoples Federal Savings Bank’s long history of commitment to the community complements Brookline Cooperative Bank’s dedication to its friends and neighbors,” Leetch added. “The scope of commitment to the Brookline community will be magnified considerably as a result of the consolidation.”

“Customers will have the best of both banks,” offered Brackett. “Peoples Federal Savings Bank and Brookline Cooperative Bank are both well respected, well capitalized, community-minded financial institutions. The consolidation will result in a stronger bank with those same qualities.”

Customers of the two existing banks should expect a smooth transition to the new consolidated bank, according to Leetch and Brackett. Each institution will maintain a direct and steady stream of communication with its customers throughout the consolidation process.