IFCJ Interchange Financial Services

In response to Lawrence Seidman's August 22, 2005 letter to Mr. Anthony Abbate, president and CEO of Interchange Financial Services Corporation (NASDAQ: IFCJ), included in Mr. Seidman's recent filing with the SEC on Form 13D, the Board of Directors of Interchange today issued the following statement: "We, the board of directors, want to make it patently clear to Mr. Seidman and all of our shareholders that we unanimously stand behind Mr. Abbate and our experienced management team. They have proven over the long-term they can deliver exceptional shareholder value as compared to the corporation's peer group. Their success is built upon the company's strategic plan that recognizes long-term value grows naturally from delivering high-quality service to the communities it serves. The results speak for themselves. "Interchange Bank is managed prudently and we do not take undue risks with the investment of our shareholders. We expect Mr. Abbate to stay the course that has proved so successful for so long, rather than focus only on short-term gains for short-term investors. Mr. Seidman has a narrow obligation to his small group of investors, and he is free to pursue it; but he will not dictate nor improperly influence what direction Interchange Bank should take, for we have a much broader mandate: the creation of value for all of our investors and the well-being of the entire institution and the constituencies we serve."