Exhibit 99.1


               [LETTERHEAD OF THE FIRST NATIONAL BANK OF IPSWICH]


September 11, 2007

              FIRST IPSWICH BANCORP PROPOSES STOCK RECLASSIFICATION
                   Community bank benefits from privatization

IPSWICH, MA - In the continuing effort to increase Bank profitability and
shareholder value, First Ipswich Bancorp (OTC: FIWC), the bank holding company
for The First National Bank of Ipswich (FNBI), announced today it will propose
the reclassification of common stock held by shareholders of less than 200
shares into shares of Series A Preferred Stock on a one-for-one basis. Shares of
common stock held by shareholders owning 200 or more shares will remain
outstanding and be unaffected by the reclassification.

The net effect of the reclassification will be to reduce the total number of
common shareholders below the level at which the SEC requires extensive
reporting. As a result, the Company will realize significant cost savings by
removing the burden of its reporting obligations under the Securities Exchange
Act of 1934 and the Sarbanes-Oxley Act of 2002.

"We are a community bank and we want to focus more on Main Street and Market
Street than on Wall Street," said President and CEO Russell G. Cole. "This move
will free up an enormous amount of time and money we are forced to spend
maintaining the requirements of a publicly-held company".

Current shareholders who hold fewer than 200 shares of common stock - an
estimated 158 shareholders representing approximately 0.5% of the total shares
outstanding - will swap their shares for the Series A Preferred Stock. Preferred
shareholders will have the added benefit of having dividend and liquidation
preferences to the Company's common stock and will continue to retain certain
voting rights. The Company expects the preferred stock will trade in the same
market price range as the common stock and that bid and ask prices for both
classes of stock will be posted on the OTC bulletin board.

"This is a very fair way to privatize the Company while allowing all current
shareholders to retain their equity interest in the Company," Cole added. "Quite
simply, given the high cost of regulation, the benefits of being a publicly
traded community bank don't exist today. The trading volume of our stock does
not justify the tremendous expense we incur by being a public company. Like many
community banks and small companies, we believe this process will allow us to
realize substantial cost reductions and efficiencies."

Small banks like FNBI are under increased regulatory and reporting requirements
that adversely affect their profitability. Ted Raymond, Chairman, noted, "This
is a logical next step in the strategic plan to make the Company more profitable
and increase its value. Cutting back on these requirements will allow the
Company to continue its 115 year tradition of serving its customer's needs."


The proposed reclassification is subject to approval by holders of two-thirds of
the issued and outstanding shares of the Company's common stock. Shareholders
will be asked to approve the reclassification at a special meeting of
shareholders, currently expected to be held in December, 2007.

The Company intends to file a preliminary proxy statement and Schedule 13E-3
with the SEC outlining the transaction today. The Company will file a definitive
proxy statement upon completion of SEC review. All shareholders are advised to
read the definitive proxy statement and Schedule 13E-3 carefully when these
documents are available, as they will contain important information about the
reclassification. Shareholders may obtain free copies of the proxy statement and
Schedule 13E-3 when they are available at the SEC's website at
http://www.sec.gov. The Company will mail a copy of the definitive proxy
statement to all shareholders in advance of the special meeting.

The First National Bank of Ipswich is headquartered in Ipswich with a Boston
branch located at the corner of Congress and State Streets and six locations
North of Boston in Beverly, Essex, Gloucester, Newburyport, and Rowley, MA, and
Portsmouth, NH.

This press release may contain forward-looking statements within the meaning of
the Private Securities Litigation Reform Act of 1995. Word such as "intends,"
"believes," "expects," "may," "will," "should," "contemplates," or "anticipates"
may indicate forward-looking statements.

Investors should be cautious in relying on such statements because they are
subject to a variety of risks, uncertainties, and other factors that could cause
actual results to differ materially from those expressed in any such
forward-looking statements.

These factors include, but are not limited to, statements regarding new business
strategies, the Bank's ability to comply with regulatory requirements, and those
set forth in our most recent annual report on Form 10-KSB and quarterly report
on 10-QSB, and other factors detailed from time to time in our filings with the
Securities and Exchange Commission (SEC). The Company undertakes no obligation
to update publicly any forward-looking statement, whether as the result of new
information, future events, or otherwise. For further information, please refer
to the reports and filings of the Company with the SEC.


                                       ##