HARTFORD, Conn., May 3, 2000 – First International Bancorp, Inc. (NASDAQ:FNCE), the parent of First International Bank, today reported net income of $2.1 million ($.26 per share on a diluted basis) for the first quarter of 2000. This performance represents a 478% increase in net after tax operating earnings from first quarter 1999, when net income of $2.2 million ($.27 per share on a diluted basis) included net non-recurring income of $1.8 million ($.22 per share on a diluted basis) related to the sale of the company’s last retail branch and related deposits and other expenses.

Brett N. Silvers, Chairman and Chief Executive Officer, stated "First International got off to a strong start in 2000 and we are pleased with the level and quality of earnings. Our diverse geographical and product-oriented business units contributed to revenues, and in terms of expense control, we began to realize the benefits of last year’s focus on productivity and operating efficiency."

The jump in core earnings for the first quarter resulted from growth in the origination and sale of commercial and international loans to the company’s target niche of small, family-owned industrial companies worldwide, increased net interest income, and a reduction in the necessary provision for loan losses. Total originations for the quarter were $102.5 million, an 11% increase over the previous year and a continuation of the company’s 3-year unbroken streak in quarter-over-quarter loan volume increases. Financing for international trade transactions, both exports and imports, accounted for 43% of the quarter’s originations.

Loans under management, including those on balance sheet plus serviced for investors, increased 35% to $1.1 billion at March 31, 2000 from $823.1 million at March 31, 1999. Loans serviced for investors rose 41% from the previous year to $967.3 million at March 31, 2000. Loan servicing income totaled $1.9 million for first quarter 2000, an 82% increase over the same period of 1999. $103.3 million in loan sales and securitizations were completed during the first three months of 2000. Sales consisted primarily of government guaranteed loans sold to investors and non-guaranteed loans sold into capital markets sales facilities. As of March 31, 2000, the company’s balance sheet loan portfolio included approximately $33.3 million of commercial loans held for sale.

Leslie A. Galbraith, President and Chief Operating Officer, reported that "During first quarter 2000, we completed our fifth securitization of loans to niche industrial clients since June 1998. We were very pleased with the receptivity of capital markets to this latest securitization and with the continuing strong performance of our prior securitization transactions." The first quarter 2000 securitization included $35.8 million of the unguaranteed portions of U.S. Small Business Administration (SBA) loans which, prior to completing a $10.0 million prefunding delivery planned for second quarter 2000, resulted in a pre-tax gain of $1.8 million. The $32.2 million senior security was rated AAA by Moody’s Investor Services and Fitch IBCA.

Seven Signed Industrial E-Commerce Agreements

CEO Silvers announced the initial results of the company’s investments in Internet-based technology and marketing. In March and April 2000, the company established contractual alliances with business-to-business electronic marketplaces serving seven different global industrial sectors: e-STEEL.com (steel), MachineTools.com (industrial equipment), Textrade.com (textiles), RailNet-USA.com (railroads), Enermetrix.com (electricity and natural gas), Plasticscommerce.com (plastics) and ChemIndustry.com (chemicals). These and other alliances currently under discussion are aimed at driving up the volume of quality loans to the company’s established niche of small industrial companies worldwide.

Under the alliance agreements, First International plans to finance the settlement of transactions between businesses buying and selling products and services in industrial e-commerce marketplaces, as well as meet many of their other credit needs. The bank will fund 14 commercial and international loan products comprising its e-CreditMenu(sm) up to $5 million per transaction, which is significantly greater credit availability than the $100,000 maximum "credit card" levels typifying the online business loan market today. As much of the credit underwriting and loan documentation process as possible will take place online. The bank’s online lending will be supported by Riscope(sm), its proprietary commercial credit scoring system, and ThruCredit®, its technological solution for e-business financing.

According to Silvers, "The Internet is a transforming way for First International to leverage its existing strengths – global reach and credit product variety – with greater efficiency and convenience for clients. Industry-specific e-commerce marketplaces will become a major distribution channel for the company, complementing our worldwide network of offices, international representatives and trade association relationships. We expect to reach a greater number of companies around the world meeting our profile at a significantly lower cost than today. Our goal is to be a significant player in the evolution of commercial lending from a traditionally high touch, high cost and slow moving business to a high tech process with improved standardization and scale made possible by e-commerce."

New U.S. Offices Establish A Coast-to-Coast Presence

In May 2000, First International Bank plans to open new lending offices in Los Angeles, California and Miami, Florida, establishing a coast-to-coast presence in 14 U.S. cities. The two new offices are an additional opportunity for the company to utilize its international trade financing expertise. Global Management and Business Resources, Inc., the bank’s Master Agent for Korea, already has an established presence in California as a facilitator of trade with Asia. Likewise, the bank’s Brazilian Master Agent, NetPlan Corporate Finance Ltda, and strategic ally for freight logistics, Panalpina, have locations in Miami and will support business development efforts there.

According to CEO Silvers, "The profile of Los Angeles and Miami as industrial and international trade centers make each city an excellent base for our continuing expansion. First International already has clients in these markets, and we expect this number to grow significantly."

The bank has recently obtained SBA preferred lender status in six California counties.

Dividend

The Board of Directors of First International Bancorp, Inc. declared a dividend of $0.03 per share to be paid on May 19, 2000 to stockholders of record as of May 12, 2000.

About First International Bank and First International Bancorp, Inc.

First International Bank (www.upscapital.com) and First International Bancorp, Inc. specialize in providing innovative credit, trade and financial solutions to small and medium size industrial companies located in the United States and international emerging markets. The company, based in Hartford, Conn., is the nation’s most active combined user of loan guarantee programs made available by the U.S. Small Business Administration, U.S. Department of Agriculture and U.S. Export-Import Bank.

The company has SBA preferred lender status in 21 districts, USDA certified lender status in several states, and Ex-Im AA delegated authority for export working lines of credit on a national basis. The company operates domestic representative offices in Boston, MA, Cleveland, OH, Detroit, MI, Hartford, CT, Miami, FL, Morristown, NJ, Philadelphia, PA, Pittsburgh, PA, Providence, RI, Rochester, NY, Springfield, MA, St. Louis, MO, and Washington, DC. It also has international representatives in Argentina, Brazil, Central America, Egypt, India, Indonesia, Korea, Mexico, North Africa, the Philippines, Poland, South Africa, Turkey and West Africa.

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995

Any statements contained in this press release, which are not historical facts, are forward-looking statements; and, therefore, many important factors could cause actual results to differ materially from those in the forward-looking statements. Such factors include, but are not limited to, changes (legislative, regulatory and otherwise) in the banking and commercial finance industries and those specifically relating to the continuation in their present form of the government guaranteed loan programs utilized by the Company; the ability of the Company to continue its recent growth in an increasingly competitive market for loan originations; disruption in the capital markets which may delay or prevent the Company from receiving funding under warehouse lines of credit or completing loan sales and securitizations; and other risks identified in the Company’s Securities and Exchange Commission filings.

MEDIA CONTACT:

First International Bank:
Michele Zommer
(860) 241-4705
zommerm@firstinterbank.com

Brett N. Silvers
Chairman & CEO
(860) 241-2517
silversb@firstinterbank.com

Leslie A. Galbraith
President & COO
(860) 241-2529
galbraithl@firstinterbank.com