The First Bancorp Increases Dividend

DAMARISCOTTA, Maine--(Business Wire)--
The Board of Directors of The First Bancorp (NASDAQ: FNLC), today
declared a quarterly dividend of 19.0 cents per share. This
second-quarter dividend, which is payable July 31, 2008, to
shareholders of record as of July 7, 2008, represents an increase of
11.8% or 2.0 cents per share over the second-quarter dividend declared
in 2007 of 17.0 cents per share.

"The Company has raised its regular cash dividend for 14
consecutive years and for 51 consecutive quarters," noted Daniel R.
Daigneault, The First Bancorp's President & Chief Executive Officer.
"The quarterly dividend of 19.0 cents per share translates into an
annual dividend of 76.0 cents per share, and based on today's closing
price of $16.33 per share, this results in a current dividend yield of
4.65% annually.

"Lower interest rates as a result of Federal Reserve actions
during the past year have been positive for The First Bancorp,"
President Daigneault went on. "When combined with good asset growth,
the result has been significant improvement in our net interest margin
and earnings. At the same time, the dividend yield of 4.65% remains
extremely attractive given the decline in interest rates. With strong
earnings performance in the past several quarters, our current
dividend yield and history of dividend increases, we feel The First
Bancorp continues to perform well, especially in the present
challenging economic environment."

The First Bancorp, headquartered in Damariscotta, Maine, is the
bank holding company for The First, N.A. The First is an independent
community bank serving Midcoast and Downeast Maine with fourteen
offices in Lincoln, Knox, Hancock and Washington Counties that provide
consumer and commercial banking products and services. It also
provides investment advisory and trust services though First Advisors,
a division of the Bank.

Forward-looking and cautionary statements: except for the
historical information and discussions contained herein, statements
contained in this release may constitute "forward-looking statements"
within the meaning of the Private Securities Litigation Reform Act of
1995. These statements involve a number of risks, uncertainties and
other factors that could cause actual results to differ materially, as
discussed in the company's filings with the Securities and Exchange
Commission.

The First Bancorp
F. Stephen Ward, 207-563-3272
Executive Vice President & Chief Financial Officer

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