Hartford, Conn., July 31, 2000—First International Bank, a subsidiary of First International Bancorp, Inc. (NASDAQ:FNCE), today announced the expansion of its U.S. and international operations, bringing to 29 the company's total locations worldwide. A new office in Richmond, Virginia and market coverage in Uruguay and Chile will support First International's strategy of being the premier global lender to small industrial companies.

First International’s 15^th U.S. office will be based in Richmond, Virginia, where James B. Giuseffi, senior vice president, will head up operations. The move marks First International’s next step in establishing a physical presence and visibility in the Southern U.S., following the opening of a Miami office in April 2000 and complementing the activities of its Reston, Virginia office established in March 1997.

Paul Falvey, executive vice president overseeing the bank's lending activities in the Northeast, Mid-Atlantic and South, observed that, "Small manufacturers, distributors, wholesalers and exporters in Virginia and throughout the South have a demonstrated need for specialized credit options ranging from basic working capital lines, equipment loans and industrial mortgages to sophisticated international trade, energy and barter financing programs. First International offers privately owned industrial companies innovative solutions that enhance their cash flow and competitiveness in today's global marketplace."

Robert Kaiser, director of the Export-Import Bank of the United States' Mid-Atlantic Region, which includes Virginia and the Greater Richmond area, commented that, "We are pleased to see First International establish a local presence in Richmond based on their track record of serving the small industrial sector."

Falvey further noted that, "The Richmond area is populated with industrial companies whose export and import financing needs are underserved. Businesses that require loans from $100,000 to $5 million are struggling to attract the attention of banks that are increasingly focused on much larger customers. Our Richmond operation will open up new opportunities for growth by small and medium size industrial companies in the region."

In South America, First International announced its expansion into Chile and Uruguay by broadening the market territory for its Master Agent, ArgenCIMA S.A., which is based in neighboring Buenos Aires, Argentina.

First International's chairman and CEO, Brett N. Silvers, noted that, "There are significant opportunities for us to finance small industrial companies in both Chile and Uruguay." Silvers' vision hinges on a positive future for the Mercosur trade bloc, which links Chile and Uruguay to the much larger economies of Brazil and Argentina. Mercosur comprises a market of 210 million people and more than $1 trillion in goods and services produced annually.

Mercosur is slated for inclusion in the Free Trade Area of the Americas (FTAA), a proposed Western Hemisphere free trade zone that would also encompass the NAFTA countries—the United States, Mexico and Canada. FTAA would be a powerful force in lowering tariffs and other international trade barriers throughout North, Central and South America. Analysts predict that, if FTAA is established, there would be a dramatic increase in U.S. capital equipment exports to the Mercosur nations, including Chile and Uruguay, First International's newest international markets.

Commenting on the growing opportunities in South America, Professor Richard Feinberg, Director of the Asia Pacific Economic Cooperation (APEC) Study Center at the University of California at San Diego, observed that, "In Latin America, small and medium size firms have traditionally lacked ready access to trade credit. Yet it is precisely such firms that could benefit greatly from the expansion in trade being generated by market liberalization through Mercosur, the proposed FTAA, and other open trading arrangements."

In Chile and Uruguay, specifically, "First International aims to make U.S. Export-Import Bank financing available to small and medium size companies as U.S.-made capital equipment becomes more accessible to these markets," stated James G. Fortsch, executive vice president and head of International Banking at First International.

Charles Baker, senior vice president and head of First International's operations in the Americas, noted that, "Although Chile is historically one of the region’s most stable and prosperous countries and has a relatively well-developed banking sector, credit availability for small and medium size manufacturers remains limited." According to Baker, "We expect to have a real impact on our target industrial niche as the Chilean economy emerges from its recent recession and companies there begin investing again in equipment."

First International Bank (www.upscapital.com) – a world leader in the use of SBA, USDA and Export-Import Bank loans – provides innovative credit, trade and financial solutions for small and medium size industrial businesses. The company has more than 200 employees and representatives at 29 locations worldwide. U.S. offices are in Boston, Cleveland, Detroit, Hartford, Los Angeles, Miami, Morristown, Philadelphia, Pittsburgh, Providence, Richmond, Rochester, Springfield, St. Louis, and Washington, DC. International representatives are based in Argentina, Brazil, Central America, Egypt, India, Indonesia, Korea, Mexico, North Africa, the Philippines, Poland, South Africa, Turkey and West Africa. During 1999, the company originated $551 million in loans primarily within its industrial niche, and closed the year with a managed loan portfolio of $1.1 billion. Established in 1955, the bank is a subsidiary of publicly traded First International Bancorp Inc. (NASDAQ: FNCE), with headquarters in Hartford, Connecticut.

MEDIA CONTACT:

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