MIDDLEBORO, Mass., July 12 /PRNewswire-FirstCall/ -- Mayflower Co-operative Bank (Nasdaq: MFLR) announced today that the Board of Directors of Mayflower Co-operative Bank has adopted a Plan of Reorganization and Acquisition (the 'Plan') under which the Bank would reorganize itself into a holding company structure.

The Board of Directors believes the formation of a holding company will expand the means by which capital can be raised, provide the Bank with greater flexibility in structuring possible acquisitions, and allow greater diversification of the Bank's activities.

In connection with the Plan, Mayflower Co-operative Bank intends to form a new Massachusetts holding company that will exchange shares of its common stock for shares of Mayflower Co-operative Bank on a one-for-one basis. The Plan is subject to regulatory approval and approval by Mayflower Co-operative Bank's stockholders at the 2006 Annual Meeting of Stockholders.

During the reorganization, the business of Mayflower Co-operative Bank will continue normally and without interruption. The reorganization will have no effect whatsoever on existing savings accounts and loans. All accounts will remain insured up to applicable limits by the Federal Deposit Insurance Corporation (FDIC).

Mayflower Co-operative Bank is a Massachusetts state chartered co- operative bank specializing in residential and commercial lending and traditional banking and deposit services. The Bank currently serves southeastern Massachusetts from its Main Office in Middleboro and maintains additional full-service offices in Bridgewater, Lakeville, Plymouth, Rochester and Wareham, Massachusetts. All of the Bank's deposits are insured by the Federal Deposit Insurance Corporation (FDIC) and by the Share Insurance Fund (SIF) of Massachusetts.

This press release may contain certain forward-looking statements, which are based on management's current expectations regarding economic, legislative and regulatory issues that may impact the Bank's earnings in future periods. Factors that could cause future results to vary materially from current management expectations include, but are not limited to, general economic conditions, changes in interest rates, deposit flows, real estate values and competition; changes in accounting principles, policies or guidelines; changes in legislation or regulation; and other economic, competitive, governmental, regulatory and technological factors affecting the Bank's operations, pricing, products and services.

SOURCE Mayflower Co-operative Bank