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July 19, 2006 09:38 AM US Eastern Timezone

Interchange Financial Services Declares Quarterly Dividend

SADDLE BROOK, N.J.--(BUSINESS WIRE)--July 19, 2006 - On July 18, 2006,
Interchange Financial Services Corporation (NASDAQ:IFCJ), the holding company
for Interchange Bank, declared a quarterly cash dividend of $0.10 per common
share payable on August 8, 2006, to holders of record as of July 31, 2006. This
dividend represents $0.40 per share on an annualized basis. Based upon the
stock's $22.50 closing price as quoted on July 18, 2006, the yield is 1.78%.

About Interchange

Headquartered in Saddle Brook, N.J., Interchange Bank is New Jersey's largest
independent bank serving Bergen and Essex Counties, and a wholly owned
subsidiary of Interchange Financial Services Corp. (NASDAQ:IFCJ). With $1.6
billion in assets and 30 branches, Interchange Bank offers innovative financial
products and services to businesses and retail customers. 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.


Contacts

Interchange Financial Services
Charles Field, 201.703.2265