8-K

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
____________________________________
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report
(Date of Earliest Event Reported)
April 2, 2008
Merchants Bancshares, Inc.
(Exact Name of Registrant As Specified In Its Charter)
Delaware		0-11595	03-0287342
(State Or Other Jurisdiction		(Commission File No.)	(IRS Employer
Of Incorporation)			Identification No.)
275 Kennedy Drive			05403
So. Burlington, Vermont			(Zip Code)
(Address Of Principal
Executive Offices)
(802) 658-3400
(Registrant's telephone number, including area code)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
[ ]	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
[ ]	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
[ ]	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
[ ]	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

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Item 5.02. Departure of Directors or Principal Officers; Election of Directors; Appointment of Principal Officers; Compensatory Arrangements of Certain Officers.
On April 2, 2008, Merchants Bancshares, Inc. (the "Company") issued a press release, included as Exhibit 99.1 to this Current Report on Form 8-K, which is incorporated herein by reference, announcing that, effective April 7, 2008, Molly Dillon would join the Company's wholly-owned subsidiary, Merchants Bank (the "Bank") as Senior Vice President. Ms. Dillon will also join the Bank's wholly-owned subsidiary, Merchants Trust Company, as President and CEO effective April 7, 2008.
Prior to joining the Company, Ms. Dillon was formerly Senior Vice President and Managing Director of the Wealth Management Group at TD Banknorth, based in Burlington, VT. She has 20 years' of experience in trust, investment and private banking, with additional experience in executive-level marketing and sales management at TD Banknorth and Bank of Vermont.
The Bank intends to enter into an employment agreement with Ms. Dillon relative to her new position within the Bank, the terms of which the Bank expects to finalize on or before June 30, 2008.
Item 9.01. Financial Statements and Exhibits
(c).	The following exhibits are included with this Report:
	Exhibit No.		Description
	99.1		Press Release dated April 2, 2008
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
				MERCHANTS BANCSHARES, INC.
Date:		April 7, 2008		/s/ Janet P. Spitler
				Janet P. Spitler
				Treasurer & CFO
Exhibit 99.1

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EX-99

For Release April 2, 2008

Contact: Lisa Razo

(802) 865-1838

Merchants Bank Announces New Executive Officer

SOUTH BURLINGTON, VT-Michael R. Tuttle, President and CEO of Merchants Bancshares, Inc. (NASDAQ: MBVT) and its main operating subsidiary, Merchants Bank, announced that Molly Dillon, 59, of South Burlington, Vermont, will join Merchants Bank on Monday, April 7, 2008, as Senior Vice President. She will also join the Bank's wholly-owned subsidiary, Merchants Trust Company as President and CEO. Ms. Dillon was formerly Senior Vice President and Managing Director of the Wealth Management Group at TD Banknorth, based in Burlington, VT. She has 20 years' of experience in trust, investment and private banking, with additional experience in executive-level marketing and sales management at TD Banknorth and Bank of Vermont.

Ms. Dillon is a member of the honorary board of directors of the Visiting Nurse Association of Chittenden and Grand Isle Counties, and has previously served the VNA as chair of the board and as recent campaign co-chair. She has served on the Planned Giving Committee of the Greater Burlington United Way, where she continues to participate as campaign solicitor. Ms. Dillon is also a former board member of the Greater Burlington YMCA and the Leadership Campaign of the Lake Champlain Regional Chamber of Commerce, and former regional trustee of the Vermont Symphony Orchestra.

Ms. Dillon earned a Bachelor of Arts degree from Cornell University, and is a Certified Trust and Financial Advisor. She completed programs at Northern New England School of Banking and the American Bankers Association's National Trust School at Northwestern University.

Mr. Tuttle commented, "We are delighted that Molly has joined us during this very exciting period of growth for our wealth management division. I am confident that Merchants Trust Company will reach new heights under her leadership."

The continuing mission of Merchants Bank is to provide Vermonters with a state-wide community bank that blends a strong technology platform with a genuine appreciation for local markets. Merchants Bank fulfills this commitment through a branch-based system that includes 36 community bank offices and 44 ATMs throughout Vermont, Personal Bankers dedicated to top-quality customer service and streamlined solutions, including: Personal Checking and Savings with Free Checking for Life^®, CashRewards Checking^sm , a low-cost Money Market Account, Free Online Banking and Bill Pay, Overdraft Coverage, Direct Deposit, Free Debit Card, and Free Automated Phone Banking; Business Banking with Business Online Banking and Bill Pay, Business Lines of Credit and Merchant Card Processing; Small Business Loans; Health Savings Accounts; Credit Cards; Flexible Certificates of Deposit; Vehicle Loans; Home Equity Credit; and Home Mortgages. Visit mbvt.com for more informatio n. Merchants' stock is traded

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on the NASDAQ National Market system under the symbol MBVT. Member FDIC. Equal Housing Lender.

Some of the statements contained in this press release constitute forward-looking statements. Forward-looking statements relate to expectations, beliefs, projections, future plans and strategies, anticipated events or trends and similar expressions concerning matters that are not historical facts. The forward-looking statements reflect Merchants' current views about future events and are subject to risks, uncertainties, assumptions and changes in circumstances that may cause Merchants' actual results to differ significantly from those expressed in any forward-looking statement. Forward-looking statements should not be relied on since they involve known and unknown risks, uncertainties and other factors that are, in some cases, beyond Merchants' control and which could materially affect actual results. The factors that could cause actual results to differ materially from current expectations include changes in general economic conditions in Vermont, changes in interest rates, changes in co mpetitive product and pricing pressures among financial institutions within Merchants' markets, and changes in the financial condition of Merchants' borrowers. The forward-looking statements contained herein represent Merchants' judgment as of the date of this report, and Merchants cautions readers not to place undue reliance on such statements. For further information, please refer to Merchants' reports filed with the Securities and Exchange Commission.

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