Exhibit 20.1

Slade's Ferry Bancorp Establishes Reserves for
State Tax Liability
March 06, 2003  12:59:00 PM ET

Somerset, Massachusetts, March 6 /PRNewswire-FirstCall/ - Slade's Ferry
Bancorp (NasdaqSC: SFBC) announced today that it will establish a liability
in the first quarter of 2003 of approximately $1.3 million for additional
state taxes, including interest (net of any federal tax deduction
associated with such taxes and interest) as a result of new legislation
that retroactively disallows the deduction for dividends received from a
real estate investment trust subsidiary ("REIT") for fiscal years 1999
through 2002.

The liability is the result of new legislation signed yesterday by the
Governor of Massachusetts that amends state law to disallow the deduction
for dividends received from a REIT.  This amendment applies retroactively
to tax years ending on (or after) December 31, 1999.  As a result of the
new legislation, Slade's Ferry will also cease recording the tax benefits
associated with the dividend deduction, effective for the 2003 tax year.
As a result of the new legislation, Slade's Ferry expects that its
effective tax rate for 2003 will increase by 1.6%.

The board of directors for Slade's Ferry Bancorp will support an industry
legal challenge, and questions the constitutionality of the retroactive
provision.

Statements in this press release that are not historical facts are forward-
looking statements within the meaning of the Private Securities Litigation
Reform Act of 1995 that involve risks and uncertainties. These statements
include, but are not limited to, the Company's belief that the new
legislation will be challenged. You should not place undue reliance on our
forward-looking statements. You should exercise caution in interpreting and
relying on forward-looking statements as they are subject to significant
risks, uncertainties and other factors which are, in some cases, beyond the
control of Slade's Ferry and could cause actual results to differ
materially from those set forth in the forward-looking statements. These
factors include, among others, the willingness and ability of Slade's Ferry
and others to pursue a challenge to the new legislation.  Slade's Ferry
does not undertake any obligation to update any forward-looking statement
to reflect circumstances or events that occur after the date the forward-
looking statements are made.

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                                  Ex. 20.1