Hudson United Bancorp Announces FDIC Lifts Cease and Desist Order

Hudson United Bancorp (NYSE: HU) today reported that the
Federal Deposit Insurance Corporation (FDIC) terminated the Order to
Cease & Desist issued in May 2004 related to Hudson United Bank's
compliance with BSA. This official lifting of the Order removes all of
the limitations previously imposed.
   "We are extremely proud of the Hudson United Bank BSA/AML
Compliance Team for improving policies and procedures, training and
implementation of a World Class compliance program, and of our
Employees for their dedication to establishing a strong compliance
culture," stated Kenneth T. Neilson, Chairman, President & CEO.
   The Company is the multi-state bank holding company for the Bank,
which has 204 offices in New Jersey, New York, Connecticut and
Pennsylvania.
   This release contains forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995. Such
statements are not historical facts and include expressions about
management's confidence and strategies and management's expectations
about new and existing programs and products, relationships,
opportunities, technology and market conditions. These statements may
be identified by such forward-looking terminology as "expect", "look",
"believe", "anticipate", "consider", "may", "will", or similar
statements or variations of such terms. Such forward-looking
statements involve certain risks and uncertainties. Actual results may
differ materially from the results discussed in these forward-looking
statements. Factors that may cause actual results to differ materially
from those contemplated by such forward-looking statements include,
among others, unexpected changes in interest rates, deterioration in
economic conditions, deterioration in deposit and loan volume trends,
deterioration in loan quality, one or more changes in business models
or failure to realize expected cost savings or revenue enhancements
from changes in business models and acquisitions, the continued
existence and availability of tax credits, especially its Section 29
credits and other tax advantaged investments, the effects of legal,
tax and regulatory provisions applicable to the Company, and the TD
Banknorth merger.
   The Company assumes no obligation for updating any such
forward-looking statements at any time. Information on potential
factors that could cause the Company's financial results to differ
from the forward-looking statements also is included from time to time
in the Company's public reports filed with the SEC, including in our
Form 10-K for the year ending December 31, 2004.