Business Wire

October 19, 2005 9:36 AM US Eastern Timezone

Interchange Financial Services Corporation Declares Quarterly Cash Dividend

SADDLE BROOK, N.J.--(BUSINESS WIRE)--October 19, 2005--On October 18, 2005,
Interchange Financial Services Corporation ("Interchange"), the holding company
for Interchange Bank, declared a quarterly cash dividend of $0.09 per common
share payable on November 18, 2005, to holders of record as of October 31, 2005.
This dividend represents $0.36 per share on an annualized basis. Based upon the
closing price of the stock as quoted on October 18, 2005, of $15.89 the yield is
2.27%.

About Interchange

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 Corporation (Nasdaq:IFCJ). A thought
leader in the industry, the Bank was among the first to implement a broad range
of innovative services, including 24-hour, 7-day-a-week online banking and bill
paying services, online stock trading, and the ability to apply for a loan
online with an instant credit decision. Mutual funds and annuities are offered
by ICBA Financial Services, through the Bank's investment department. With $1.6
billion in assets and 30 branches, the Bank focuses its efforts on the local
communities from which it derives deposits and generates loans. Through
Interchange Bank's subsidiary, Interchange Capital Company, L.L.C., cost
effective equipment leasing solutions are available to small- and middle market
companies. For additional information, please visit the company's Web site at
www.interchangebank.com.

"Safe Harbor" Statement under the Private Securities Litigation Reform Act of
1995: Statements in this press release regarding Interchange Financial's
business which are not historical facts are "forward-looking statements" that
involve risks and uncertainties. For a discussion of such risks and
uncertainties, which could cause actual results to differ from those contained
in the forward-looking statements, see "Risk Factors" in the Company's Annual
Report or Form 10-K for the most recently ended fiscal year.

Contact:  Keating & Co.
          Vicki Banner, 973-400-5405
          vbanner@keatingco.com


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