Interchange Bank Wins SBA Award; Ranks 8th in New Jersey in SBA Loan Volume

Interchange Bank (NASDAQ:IFCJ), a commercially focused
community bank, received the U.S. Small Business Administration's New
Jersey District Office Bronze Award today at the SBA's annual awards
ceremony in Newark.
   Interchange qualified for the award by making 52 SBA loans in the
fiscal year ended September 30, 2005 with a total volume of $21.7
million. This dollar volume makes Interchange number 8 on the New
Jersey list of banks, while the number of loans puts the Bank at 15th
in the state for 7A loans.
   "In our first full year as an SBA Preferred Lender Participant we
achieved outstanding results," said Anthony Abbate, president and CEO
of Interchange Bank. "It is worth noting that we were competing with
some of the largest banks in the state."
   The mission of the SBA is "to maintain and strengthen the nation's
economy by aiding, counseling, assisting and protecting the interests
of small businesses and by helping families and businesses recover
from national disasters."
   In a letter of congratulations to the Bank, James A. Kocsi,
District Director of the SBA wrote, "These loans help to create and
retain many jobs, and have had a significant impact in the state."

   About Interchange Bank

   Headquartered in Saddle Brook, NJ, Interchange Bank is one of
Bergen County's largest independent commercial banks and a wholly
owned subsidiary of Interchange Financial Services Corp (NASDAQ:IFCJ).
With $1.6 billion in assets and 30 branches, Interchange Bank offers
services specifically designed for businesses, including: Small
Business Checking with lower minimum balances; Rapid Response loans up
to $250,000 and approvals within 48 hours; Business Class Banking with
an automatic sweep feature; cash management services; equipment
leasing; escrow management; corporate Visa account; a business check
card, featuring interest-free business purchases; merchant credit card
services and free wire transfers. Interchange is an SBA Preferred
Lender, financing many local small businesses that otherwise might not
qualify under standard credit requirements. All business banking can
be accomplished online via Interbanking, which provides 24/7 access to
accounts. For additional information, please visit the company's Web
site at www.interchangebank.com.