BOSTON, May 15 /PRNewswire-FirstCall/ -- The Massachusetts Business Association (MBA) and Sovereign Bank today announced an alliance that makes Sovereign's Health Savings Accounts available to MBA members.

"MBA's mission has always been to help small businesses lower insurance costs," said Shannon Linde, Managing Director of MBA. "By partnering with Sovereign, we can now offer both halves of the equation: health plans with lower premiums, and a great way to save for current and future healthcare expenses."

In addition to more traditional health insurance options, MBA offers small businesses a range of lower cost, High Deductible Health Plans (HDHPs) from leading insurance carriers. Individually-owned Health Savings Accounts (HSAs) can be paired with HDHPs to provide the insured with a tax-advantaged way save for the deductible amount and to build savings for future health care expenses.

Sovereign Bank's Health Savings Accounts can be paired with any carrier's qualified HDHP. Both the employee and the employer can fund the individual's HSA with pre-tax dollars up to an annual limit set by the federal government. (Contribution limits for 2007 are $2,850 for individual plan coverage and $5,650 for family coverage.) Unlike some other health saving vehicles, unused funds in HSAs roll over from year to year and can grow to become a health savings nest egg for use later in life.

Sovereign's HSAs offer competitive, tiered interest rates, 24/7 account access online and by phone, and a special HSA Visa(R) debit card. Marshall Soura, Managing Director of Sovereign's Global Solutions Group said, "MBA's history of serving small businesses is exactly what we were looking for in a partner. With MBA, thousands of small businesses in the state will have access to our HSAs and benefit from MBA member pricing."

For more information on Sovereign's HSA and health plan options available to MBA members, visit http://www.mbamembership.com or call 800-696-8167.

About Massachusetts Business Association

Massachusetts Business Association is the state's leading provider of employee benefits to small businesses. Founded in 1969 specifically to bring cost-effective health insurance to the neglected small business market, MBA has grown to become a full service employee benefits firm and the voice of small business in Massachusetts. Today, MBA serves more than 47,000 companies and their more than 150,000 employees, utilizing proprietary technology to deliver a high level of service to members, brokers and insurance carriers.

About Sovereign

Sovereign Bancorp, Inc., ("Sovereign") (NYSE: SOV), is the parent company of Sovereign Bank, a financial institution with $82 billion in assets as of March 31, 2007 with principal markets in the Northeast United States. Sovereign Bank has nearly 785 community banking offices, over 2,300 ATMs and approximately 11,350 team members. Sovereign offers a broad array of financial services and products including retail banking, business and corporate banking, cash management, capital markets, wealth management and insurance. Sovereign is the 18th largest banking institution in the United States. For more information on Sovereign Bank, visit http://www.sovereignbank.com or call 1-877-SOV-BANK.