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                                                           FOR IMMEDIATE RELEASE

         BERKSHIRE HILLS BANCORP, INC. ANNOUNCES 2003 EARNINGS GUIDANCE

PITTSFIELD, MA, JANUARY 24, 2003 - Berkshire Hills Bancorp, Inc. (the "Company")
(AMEX:  BHL),  the  holding  company  for  Berkshire  Bank (the  "Bank"),  today
announced that it expects to meet and hopefully exceed net earnings of $1.40 per
diluted share for 2003. The Company also  announced that it anticipates  holding
an investor  conference  call in late  February  or early March to discuss  2003
progress,  update  investors  on  strategy  detail and  introduce  its new Chief
Financial Officer.

The Company estimates that net interest income and non-interest  income combined
will exceed $50 million for 2003.  Additionally,  the Company  expects  that its
2003  provision for loan losses will be materially  lower than that recorded for
2002  based  primarily  on the lower  risk  profile  of the loan  portfolio  and
expected  reduced  charge-off  activity.  The  non-interest  expense for 2003 is
anticipated  to be  somewhat  in  excess  of $34  million.  The  Company's  2003
estimates  assume the  continuation  of the current  interest rate  environment,
national and regional economic conditions and financial market conditions.

Explaining  the decision to provide  2003  earnings  guidance,  Michael P. Daly,
President  and  Chief  Executive  Officer,  stated,  "We have  historically  not
provided  earnings  guidance but due to the number of  extraordinary  items that
occurred in the fourth  quarter and the confusion in the market as to the impact
of such items on our core operations for the fourth quarter and 2003, we felt it
would be both helpful and appropriate to provide our stockholders  with guidance
as to what we now expect for 2003."

Berkshire  Hills  Bancorp,  Inc. is the  holding  company  for  Berkshire  Bank.
Established in 1846, Berkshire Bank is one of Massachusetts'  oldest and largest
independent  banks  and is the  largest  banking  institution  based in  western
Massachusetts.  The Bank is headquartered in Pittsfield,  Massachusetts  with 11
branch offices serving  communities  throughout  Berkshire  County.  The Bank is
committed  to  continuing  to  operate  as  an  independent   bank,   delivering
exceptional  customer service and a broad array of  competitively  priced retail
and commercial products to customers.

This  press  release  may   contain   certain  forward-looking  statements  with
regard  to   the  Company's   prospective   performance  and  strategies  within
the meaning of Section 27A of the

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Securities Act of 1933, as amended,  and Section 21E of the Securities  Exchange
Act of 1934, as amended. The Company intends such forward-looking  statements to
be  covered  by  the  safe  harbor  provisions  for  forward-looking  statements
contained  in the  Private  Securities  Litigation  Reform  Act of 1995,  and is
including this statement for purposes of said safe harbor provisions.

Forward-looking statements which are based on certain assumptions,  and describe
future  plans,  strategies,  and  expectations  of the  Company,  are  generally
identified  by use of the words  "believe,"  "expect,"  "intend,"  "anticipate,"
"estimate,"  "project," or other  similar  expressions.  The earnings  estimates
contained  herein  are based on  management's  best  estimates  at this time and
current  information.  The  Company's  ability to predict  results or the actual
effects  of its plans and  strategies  are  inherently  uncertain.  Accordingly,
actual results may differ  materially  from  anticipated  results.  Factors that
could have a material  adverse  effect on the  operations of the Company and its
subsidiaries  include, but are not limited to, changes in market interest rates,
general  economic  conditions,  legislation,  and  regulation;  changes  in  the
monetary and fiscal policies of the U.S.  Government;  changes in the quality or
composition  of the loan and  investment  portfolios;  changes in deposit flows,
competition, and demand for financial services and loan, deposit, and investment
products in the Company's  local  markets;  changes in local real estate values;
changes in accounting  principles and guidelines;  war or terrorist  activities;
and other economic,  competitive,  governmental,  regulatory,  geopolitical, and
technological factors affecting the Company's operations, pricing, and services.

Specific factors that could case future results to vary from current  management
expectations are detailed from time to time in the Company's SEC filings.

Readers  are  cautioned  not to place undue  reliance  on these  forward-looking
statements,  which speak only as of the date of this release. Except as required
by applicable law or regulation,  the Company undertakes no obligation to update
these forward-looking  statements, to reflect events or circumstances that occur
after the date on which such statements were made.

MEDIA AND INVESTOR CONTACT:
MICHAEL P. DALY
413-236-3194