Sovereign Bank and State Treasury Announce Initial Results of Massachusetts Job Growth Program

BOSTON, June 10 /PRNewswire/ -- Sovereign Bank New England CEO Joseph P. Campanelli and Massachusetts State Treasurer Timothy P. Cahill today announced that three companies in Devens, Mass., will be adding 150 new jobs over the next few years. The announcement reflects the first small business loans made through the Massachusetts Job Foundation Loan Program, jointly announced in February as part of Treasurer Cahill's Job Growth Task Force. Sovereign's program provides up to $200 million in low-cost loans to Massachusetts small businesses.

"At Sovereign Bank, we feel strongly that it is our job to be a partner with the Commonwealth, to help grow and retain stable jobs. Today's announcement shows that by working together to make capital available to small business, together we can help them grow and get to the next level of success," said Campanelli, who was also a task force member. "The program is about creating new jobs, as well as keeping jobs here in Massachusetts," he said.

To date, Sovereign has taken applications from approximately 30 companies for $65 million in financing that will mean the creation of an estimated 360 jobs in Massachusetts.

"There are many small and growing companies in Massachusetts without access to capital, and therefore without opportunities to grow, add jobs, and put more people to work in the Commonwealth. The Massachusetts Job Foundation Loan Program provides the capital necessary to help businesses grow and become more competitive," said Treasurer Cahill. "What is particularly notable about today's announcement is that these three companies will add valuable, well- paying engineering and manufacturing jobs to the area."

Today's announcement was made at Xinetics Corporation, Devens, Mass., which develops and manufactures precision optical products and systems for the U.S. government and other commercial customers. Xinetics will receive $2.5 million from the Massachusetts Job Foundation Loan fund and will add up to 40 new jobs over the next two to three years in the field of engineering and other technical areas. Xinetics was the first company to locate at Devens in 1996 after it was converted to a commercial center from a former U.S. Army base.

"Xinetics is a true success story as one of the pioneer companies to locate at Devens," said Xinetics President Mark A. Ealey. "The financing from Sovereign Bank will allow us to expand in the new frontier of nanotechnology which may fuel the future economic growth of Massachusetts. When we started our business in 1993 with two employees, we could never have envisioned our growth to 80 employees today and soon to be more than 100 with the help of this financing."

Another Devens company, Waiteco Machine, is projecting to add seven to ten jobs over the next three years with a loan of $2.0 million. Waiteco was recently purchased by new owners, Karl Koch and Peter Mendes, who are also veterans of the local high tech industry. One of the companies that they competed with to buy Waiteco was a South American firm, which made no guarantees of future job growth or retention of the Devens facility.

"We are grateful that Waiteco is able to take part in this new loan pool and to continue to serve our customers with the finest in precision machining technology," said Waiteco President, Karl Koch, adding, "As long time Massachusetts residents, we were thrilled to be able to purchase a local manufacturing company and help retain these scarce jobs in our state." "Without the financing and jobs credit from Sovereign, we would not have had the resources needed to invest in the new capabilities required to support the job growth," said Waiteco Vice-President Peter Mendes.

Sovereign also announced the financing of a $4.3 million tax exempt bond through MassDevelopment to Barnum Realty, LLC and Devens CPL, LLC of Devens, Mass. who will construct a new 22,122-square-foot central baking facility at the Devens Industrial Park for Dunkin' Donuts to serve four local franchisees. The new facility will produce donuts to deliver to approximately 100 stores throughout northeastern Massachusetts. The project is expected to create approximately 100 jobs. MassDevelopment is the Commonwealth's quasi-public economic development authority.

Sovereign Bank's Massachusetts Job Growth Program provides loans ranging from $250,000 to $2.5 million with flexible terms and favorable rates. Sovereign has a streamlined application process for rapid decision-making and loan funding. The program offers tailored, flexible repayment terms and amortization options, including extended terms for real estate and interest- only payment options for one year. There are no pre-payment penalties.

About Sovereign Bank

Sovereign Bancorp, Inc., ("Sovereign") , is the parent company of Sovereign Bank, a $59 billion financial institution with more than 650 community banking offices, over 1,000 ATMs and approximately 10,000 team members with principal markets in the Northeast United States. Sovereign offers a broad array of financial services and products including retail banking, business and corporate banking, cash management, capital markets, trust and wealth management and insurance. Sovereign is the 19th largest banking institution in the United States. For more information on Sovereign Bank, visit http://www.sovereignbank.com/ or call 1-877-SOV-BANK.

About Xinetics, Inc.

Xinetics is a small business, founded in 1993 to preserve critical defense-related active materials technologies, for the U.S. Military and other commercial customers, to develop them into commercial precision motion-control products. Xinetics started in Littleton, Mass, in a single facility of 2,500- square-feet. The company currently occupies three buildings with a total of 130,000-square-feet located in Devens, Mass. For more information visit http://www.xinetics.com/.

About Waiteco Machine, Inc.

Waiteco Machine, established in 1982, is a full-service manufacturer and assembler of precision machined components. The company serves a variety of industries, including semi-conductor, aerospace, wireless microwave, automotive and medical. Waiteco features state-of-the-art CNC machine technology, stringent quality standards and a unique proactive approach to customer service. For more information visit http://www.waiteco.com/.