Northway Financial, Inc. Announces Second Quarter Dividend

  On July 29, 2009 the Board of Directors of
Northway Financial, Inc. (the "Company") (OTCBB: NWYF) declared a 1.5%
stock dividend, payable on August 17, 2009 to stockholders of record on
August 7, 2009.

Fractional shares will be paid in cash. The cost basis for fractional share payouts will be calculated using the average closing price of the Company's stock for the last ten days on which there were trades immediately preceding the record date.

Northway Financial, Inc. and its subsidiary bank Northway Bank (the "Bank") are headquartered in Berlin, New Hampshire. The Bank, an FDIC insured State chartered bank, operates from 18 banking centers located throughout the central and northern regions of New Hampshire.

Contact: Richard P. Orsillo Senior Vice President and Chief Financial Officer 603-752-1171