Merrill Merchants Bancshares, Inc. Declares an 18% Increase in Cash Dividend

Edwin N. Clift, Chairman and Chief Executive Officer of
Merrill Merchants Bancshares, Inc. (the "Company") (NASDAQ:MERB), the
parent company of Merrill Merchants Bank, announced that the Company
has declared a cash dividend of $ .16 per share on the Company's
common stock for the second quarter of 2005. This is an increase of
18% over last year's second quarter dividend and an increase of $.01
over the previous quarter's dividend. The cash dividend will be
payable to all shareholders of record as of July 15, 2005, and will be
paid on July 29, 2005.

   The Company's subsidiary, Merrill Merchants Bank is headquartered
in Bangor, Maine. Merrill Merchants Bank provides consumer,
commercial, and trust and investment services through its eleven
locations in Central and Eastern Maine. The Bank is a "Preferred
Lender" of the Small Business Administration.