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October 17, 2006 09:15 AM US Eastern Time

Interchange Financial Services Declares Quarterly Dividend

SADDLE BROOK, N.J.--(BUSINESS WIRE)-- On October 16, 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
November 7, 2006, to holders of record as of October 30, 2006.  This dividend
represents $0.40 per share on an annualized basis. Based upon the stock's
$22.80 closing price as quoted on October 16, 2006, the yield is 1.75%.

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