Exhibit 20.1
Dear Stockholder:

      Congressional investigations into recent corporate problems have
resulted in the enactment of the Sarbanes-Oxley Act of 2002, which went
into effect August 29. That law, together with implementing SEC
regulations, mandates many changes in the way all public companies,
including Slade's Ferry Bancorp, manage and report on their business and
financial results. In particular, additional heavy responsibilities for
financial controls and reporting have been placed on corporate chief
executive officers, chief financial officers and the audit committees of
Boards of Directors.

      Your Company and Slade's Ferry Bank have been engaged this past year
in an ongoing review of management and operations. Significant changes have
already occurred this year at Slade's Ferry Bancorp and Slade's Ferry Bank
with the appointment of Mary Lynn D. Lenz as the President and Chief
Executive Officer of the Bank and Executive Vice President of the Holding
Company. Slade's Ferry is committed to implementing the changes necessary
to comply with the new Sarbanes-Oxley Act requirements, as well as making
additional changes which can contribute to the goal of effectively managing
the Company's business, and keeping you and the general public fully
informed on a timely basis of our financial results and any events which
may materially affect future results.

      Substantial changes are being made in the make-up and
responsibilities of the Audit Committee as well as other committees of the
Board of Directors. In reviewing additional changes necessary and
appropriate to meet the new Sarbanes-Oxley Act requirements and further the
Company's goal, Ken Rezendes, in conjunction with the Board of Directors,
has determined that the Company (Slade's Ferry Bancorp), like the majority
of other bank-holding companies, requires a full-time President and chief
executive officer in order to comply with the Sarbanes-Oxley Act.
Consequently, Ken Rezendes has recommended, and the Board of Directors has
agreed, that he relinquish his title as President/CEO of Slade's Ferry
Bancorp to Mary Lynn D. Lenz. Mr. Rezendes will remain on the Board of
Directors as Vice-Chairman.

      The Board of Directors determined that the management and reporting
of the Company's business and financial results could best be handled by
combining the executive authority for the Bank and the Holding Company into
the control of one person. Consequently, the Board of Directors is happy to
announce that it has elected Mary Lynn D. Lenz, currently President and
Chief Executive Officer of Slade's Ferry Bank, as President/Chief Executive
Officer of Slade's Ferry Bancorp as well. These changes will maximize our
ability to comply with the new Sarbanes/Oxley federal regulations while at
the same time most effectively utilizing the talent and contribution of our
Board of Directors.

      The Board anticipates that Ms. Lenz will bring to her new position
and responsibilities the same management skills and drive she has already
demonstrated at the Bank.

Sincerely,

/s/ Donald T. Corrigan                 /s/ Kenneth R. Rezendes
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Donald T. Corrigan                     Kenneth R. Rezendes
Chairman of the Board                  Vice Chairman of the Board

/s/ Mary Lynn D. Lenz
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Mary Lynn D. Lenz
President/CEO