| **FOR                IMMEDIATE RELEASE**  |   |
|------------------------------------------------|--------|

**For      More Information:**

| Jim                Delamater, President & CEONortheast                Bank, 500 Canal Street, Lewiston, ME 04240www.northeastbank.com | 1-800-284-5989                ext. 3569jdelamater@northeastbank.com  |
|-------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------|

**Northeast      Bancorp Announces Earnings for Year and Quarter Ended June      2007**

**MAINE**

**Important information—Securities, annuities, and      insurance products are not deposit products, are not FDIC insured, are subject      to investment risk, including the possible loss of principal, and are not an      obligation of or guaranteed by the Bank.**

| **NORTHEAST                BANCORP**                                      |   |
|----------------------------------------------------------------------------------------------------|--------|
| (Dollars                in Thousands, Except Per Share and Shares Outstanding                Data) |   |   |   |   |
| (Unaudited)                                                               |   |
|                                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                               |   | Three                Months Ended |   |   | Twelve                Months Ended |   |
|                                                                                               |   | June                30, |   |   |   |   |   | % |   |   | June                30, |   |   |   |   |   | % |   |
|                                                                                               |   | 2007 |   |   | 2006 |   |   | Change |   |   | 2007 |   |   | 2006 |   |   | Change |   |
| Selected                financial information                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Income                statement data:                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest                income                                                                     |   | $ | 8,802 |   |   | $ | 9,011 |   |   |   | -2 | % |   | $ | 35,682 |   |   | $ | 35,456 |   |   |   | 1 | % |
| Interest                expense                                                                    |   |   | 5,128 |   |   |   | 4,598 |   |   |   | 12 | % |   |   | 20,097 |   |   |   | 16,761 |   |   |   | 20 | % |
| Net                interest income                                                                 |   |   | 3,674 |   |   |   | 4,413 |   |   |   | -17 | % |   |   | 15,585 |   |   |   | 18,695 |   |   |   | -17 | % |
| Provision                for loan losses                                                           |   |   | 113 |   |   |   | 300 |   |   |   | -62 | % |   |   | 989 |   |   |   | 1,226 |   |   |   | -19 | % |
| Net                interest income after provision for loan losses                                 |   |   | 3,561 |   |   |   | 4,113 |   |   |   | -13 | % |   |   | 14,596 |   |   |   | 17,469 |   |   |   | -16 | % |
| Gain                on sale of loans                                                               |   |   | 210 |   |   |   | 95 |   |   |   | 121 | % |   |   | 869 |   |   |   | 309 |   |   |   | 181 | % |
| Gain                on securities                                                                  |   |   | 12 |   |   |   | 6 |   |   |   | 100 | % |   |   | 42 |   |   |   | 17 |   |   |   | 147 | % |
| Other                noninterest income                                                            |   |   | 1,986 |   |   |   | 1,930 |   |   |   | 3 | % |   |   | 7,034 |   |   |   | 6,269 |   |   |   | 12 | % |
| Noninterest                expense                                                                 |   |   | 5,176 |   |   |   | 4,673 |   |   |   | 11 | % |   |   | 20,075 |   |   |   | 18,209 |   |   |   | 10 | % |
| Operating                income before income tax                                                  |   |   | 593 |   |   |   | 1,471 |   |   |   | -60 | % |   |   | 2,466 |   |   |   | 5,855 |   |   |   | -58 | % |
| Income                tax expense                                                                  |   |   | 103 |   |   |   | 454 |   |   |   | -77 | % |   |   | 579 |   |   |   | 1,851 |   |   |   | -69 | % |
| Net                income                                                                          |   | $ | 490 |   |   | $ | 1,017 |   |   |   | -52 | % |   | $ | 1,887 |   |   | $ | 4,004 |   |   |   | -53 | % |
|                                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Per                share data:                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic                earning per common share                                                      |   | $ | 0.20 |   |   | $ | 0.42 |   |   |   | -52 | % |   | $ | 0.77 |   |   | $ | 1.61 |   |   |   | -52 | % |
| Diluted                earnings per common share                                                   |   | $ | 0.20 |   |   | $ | 0.41 |   |   |   | -51 | % |   | $ | 0.76 |   |   | $ | 1.59 |   |   |   | -52 | % |
| Weighted                average shares outstanding:                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic                                                                                              |   |   | 2,452,548 |   |   |   | 2,444,907 |   |   |   | 0 | % |   |   | 2,451,610 |   |   |   | 2,493,560 |   |   |   | -2 | % |
| Diluted                                                                                            |   |   | 2,468,978 |   |   |   | 2,469,364 |   |   |   | 0 | % |   |   | 2,470,670 |   |   |   | 2,526,095 |   |   |   | -2 | % |
|                                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Book                value per share                                                                |   |   | 16.68 |   |   |   | 15.98 |   |   |   |   |   |   |   | 16.68 |   |   |   | 15.98 |   |   |   |   |   |
| Tangible                book value per share                                                       |   |   | 13.83 |   |   |   | 15.03 |   |   |   |   |   |   |   | 13.83 |   |   |   | 15.03 |   |   |   |   |   |
|                                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                interest margin                                                                 |   |   | 2.87 | % |   |   | 3.35 | % |   |   |   |   |   |   | 2.99 | % |   |   | 3.49 | % |   |   |   |   |
| Net                interest spread                                                                 |   |   | 2.46 | % |   |   | 2.98 | % |   |   |   |   |   |   | 2.59 | % |   |   | 3.15 | % |   |   |   |   |
| Return                on average assets (annualized)                                               |   |   | 0.36 | % |   |   | 0.72 | % |   |   |   |   |   |   | 0.34 | % |   |   | 0.70 | % |   |   |   |   |
| Return                on equity (annualized)                                                       |   |   | 4.70 | % |   |   | 10.34 | % |   |   |   |   |   |   | 4.59 | % |   |   | 9.95 | % |   |   |   |   |
| Tier                I leverage ratio (Bank)                                                        |   |   | 8.60 | % |   |   | 9.07 | % |   |   |   |   |   |   | 8.60 | % |   |   | 9.07 | % |   |   |   |   |
| Tier                I risk-based capital ratio (Bank)                                              |   |   | 11.45 | % |   |   | 12.18 | % |   |   |   |   |   |   | 11.45 | % |   |   | 12.18 | % |   |   |   |   |
| Total                risk-based capital ratio (Bank)                                               |   |   | 12.70 | % |   |   | 13.44 | % |   |   |   |   |   |   | 12.70 | % |   |   | 13.44 | % |   |   |   |   |
| Efficiency                ratio                                                                    |   |   | 88 | % |   |   | 73 | % |   |   |   |   |   |   | 85 | % |   |   | 72 | % |   |   |   |   |
| Nonperforming                loans                                                                 |   |   | 5,090 |   |   |   | 8,226 |   |   |   |   |   |   |   | 5,090 |   |   |   | 8,226 |   |   |   |   |   |
| Total                nonperforming assets                                                          |   |   | 5,090 |   |   |   | 8,227 |   |   |   |   |   |   |   | 5,090 |   |   |   | 8,227 |   |   |   |   |   |
| Nonperforming                loans as a % of total loans                                           |   |   | 1.20 | % |   |   | 1.89 | % |   |   |   |   |   |   | 1.20 | % |   |   | 1.89 | % |   |   |   |   |
| Nonperforming                assets as a % of total assets                                         |   |   | 0.91 | % |   |   | 1.46 | % |   |   |   |   |   |   | 0.91 | % |   |   | 1.46 | % |   |   |   |   |
|                                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                               |   | June                30, |   |   |   |   |   |   | % |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                               |   | 2007 |   |   | 2006 |   |   | Change |   |   |   |   |   |   |   |   |   |
| Balance                sheet highlights:                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Available                for sale securities, at market                                            |   | $ | 86,348 |   |   | $ | 86,138 |   |   |   | 0 | % |   |   |   |   |   |   |   |   |   |   |   |   |
| Loans                held for sale                                                                 |   |   | 1,636 |   |   |   | 681 |   |   |   | 140 | % |   |   |   |   |   |   |   |   |   |   |   |   |
| Loans                                                                                              |   |   | 425,571 |   |   |   | 435,663 |   |   |   | -2 | % |   |   |   |   |   |   |   |   |   |   |   |   |
| Allowance                for loan losses                                                           |   |   | 5,756 |   |   |   | 5,496 |   |   |   | 5 | % |   |   |   |   |   |   |   |   |   |   |   |   |
| Total                assets                                                                        |   |   | 556,994 |   |   |   | 562,918 |   |   |   | -1 | % |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Deposits:                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| NOW                and money market                                                                |   |   | 61,459 |   |   |   | 63,862 |   |   |   | -4 | % |   |   |   |   |   |   |   |   |   |   |   |   |
| Savings                                                                                            |   |   | 21,145 |   |   |   | 24,247 |   |   |   | -13 | % |   |   |   |   |   |   |   |   |   |   |   |   |
| Certificates                of deposits                                                            |   |   | 223,071 |   |   |   | 217,187 |   |   |   | 3 | % |   |   |   |   |   |   |   |   |   |   |   |   |
| Brokered                time deposits                                                              |   |   | 22,546 |   |   |   | 51,859 |   |   |   | -57 | % |   |   |   |   |   |   |   |   |   |   |   |   |
| Noninterest-bearing                deposits                                                        |   |   | 36,333 |   |   |   | 38,138 |   |   |   | -5 | % |   |   |   |   |   |   |   |   |   |   |   |   |
| Total                deposits                                                                      |   |   | 364,554 |   |   |   | 395,293 |   |   |   | -8 | % |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Borrowings                                                                                         |   |   | 147,564 |   |   |   | 124,803 |   |   |   | 18 | % |   |   |   |   |   |   |   |   |   |   |   |   |
| Shareholders'                equity                                                                |   |   | 40,850 |   |   |   | 39,096 |   |   |   | 4 | % |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Shares                outstanding                                                                  |   |   | 2,448,832 |   |   |   | 2,447,132 |   |   |   | 0 | % |   |   |   |   |   |   |   |   |   |   |   |   |