FOR IMMEDIATE RELEASE


                              For Further information contact:
                              Donald A. Williams, President & CEO
                              Michael J. Janosco, Jr., CFO
                              413-568-1911


WESTFIELD FINANCIAL, INC. REPORTS EFFECT OF MASSACHUSETTS TAX LEGISLATION

Westfield, Massachusetts, March 14, 2003 - Westfield Financial, Inc. (AMEX:
"WFD") (the "Company"), the holding company for Westfield Bank (the
"Bank"), announced today that, as a result of Massachusetts legislation
signed on March 5, 2003 amending the corporate tax law affecting the
treatment of dividends received from Real Estate Investment Trusts (REITs),
dividends from the REIT subsidiary are no longer eligible for a dividends-
received deduction.  As a result of the enactment of this legislation, the
Company has ceased recording the tax benefits associated with the dividend
received deduction effective for the 2003 tax year.

In addition to the effect on 2003, the legislation includes a retroactive
effective date that reaches back to 2002 and prior years.  The Company's
potential additional liability for prior years taxes, including interest
(net of any federal and state tax deductions associated with such taxes and
interest), relating to the deduction for dividends received from a REIT is
approximately $2.9 million.  The Company will accrue this potential
liability in the first quarter of 2003.

The Bank owns 100% of Elm Street Real Estate Investments, Inc. ("Elm
Street"), a Delaware real estate investment trust formed pursuant to
applicable tax rules in 1998.  Prior to the enactment of the new
legislation discussed above, the Bank has taken a tax deduction under a
Massachusetts statute that provides for a dividends received deduction
equal to 95% of certain dividend distributions made by Elm Street to the
Bank.  The Company is aware that the DOR also sent notices to numerous
other Massachusetts financial institutions that reported a deduction for
dividends received from a REIT on their Massachusetts financial institution
excise tax returns.

The Company is reviewing the retroactive effect of the legislation with its
legal advisors and intends to defend vigorously its position that the
deductibility of dividends received from Elm Street was fully compliant
with Massachusetts law at the time.

Westfield Financial, Inc. (AMEX: "WFD") is the holding company for
Westfield Bank, a Massachusetts-chartered stock savings bank with 10
banking offices in the Massachusetts area.  It also has three free-standing
ATM locations in Agawam, Feeding Hills and Springfield, Massachusetts. As
of December 31, 2002, Westfield Financial, Inc. had assets of $813 million
and deposits of $656 million. The Bank's deposits are insured by the
Federal Deposit Insurance Corporation and the Bank Insurance Fund.