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Bank of America Increases Quarterly Dividend 25%

CHARLOTTE, N.C., June 25 /PRNewswire/ -- Responding to recently reduced federal taxes on dividends, the Bank of America Corporation Board of Directors today increased the quarterly dividend on common stock by 16 cents per share, or 25 percent, to $.80.

The dividend is payable on September 26, 2003 to shareholders of record on September 5, 2003.

"The reduced tax rate on dividends makes it as efficient for us to return capital to shareholders directly through dividends as through stock buybacks," said Ken Lewis, Bank of America chairman and chief executive officer. "By paying a higher dividend, we give shareholders more flexibility in deciding whether to use their share of our profits for spending or reinvestment. The dividend increase is also an indication of our confidence in the future of the U.S. economy and in our company's financial progress," Lewis added.

Bank of America (NYSE: BAC) has consistently rewarded shareholders with annual dividend increases. Previous to today's action, the dividend had increased at an average annual rate of 12 percent over the past 25 years.

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