Press Release

Approval of the Application by Interchange Financial Services Corporation

September 27, 2005

NEW YORK—The Federal Reserve Bank of New York Tuesday approved the application by Interchange Financial Services Corporation, Saddle Brook, New Jersey to acquire Franklin Bank, Nutley, New Jersey; and the application filed by Interchange Bank, Saddle Brook, New Jersey, for Franklin Bank to merge with and into Interchange Bank.

According to standard procedure, the proposal cannot be completed sooner than 15 days from the date of this announcement.

The Reserve Bank acted under authority delegated by the Board of Governors of the Federal Reserve System.

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