THE CORPORATE LIBRARY

Related Party Transactions and Outside Related Director Information

Interchange Financial Services Corporation (IFCJ)

3/30/2005 Proxy Information

Jeremiah F. O'Connor, the Company's Vice Chairman of the Board, is the father of Jeremiah F. O'Connor, Jr., a director of the Bank.

Officers and directors of the Company and their affiliated companies are customers of and are engaged in transactions with the Company and its subsidiaries in the ordinary course of business on substantially the same terms (including interest rates on loans, collateral and collectibility considerations) as those prevailing at the time for comparable transactions with other unaffiliated borrowers and suppliers.

Mr. Andora, a director of the Company and the Bank, is a member of Andora & Romano, LLC, a firm that renders various legal services to the Company and its subsidiaries. During 2004, Andora & Romano received fees for legal services of $423,454, including $95,000 paid pursuant to retainer contracts and $259,000 primarily representing fees for loan related matters, the bulk of which was reimbursed to the Bank by its customers. The Company expects to transact business with this firm in the future.

Mr. Calabrese, Jr., a director of the Company and the Bank, is a member of Gerald A. Calabrese, Jr. & Company, a firm that renders real estate appraisal services to the Company and its subsidiaries. During 2004, Gerald A. Calabrese, Jr. & Company received $41,145 for real estate appraisals. The Company expects to transact business with this firm in the future. Mr. Calabrese is also a member of Century21/Calabrese Realty which received a $101,155 commission in 2004 for finding a tenant for leasing space the Bank had available. This commission was paid through the listing broker.

Mr. William "Pat" Schuber, a nominee to be elected director of the Company, is a member of DeCotiis, Fitzpatrick, Cole & Wisler, LLP a firm that renders various legal services to the Company and its subsidiaries. During 2004, DeCotiis, Fitzpatrick, Cole & Wisler, LLP received fees for legal services of $83,415, primarily representing fees for loan related matters, the bulk of which was reimbursed to the Bank by its customers. The Company expects to transact business with this firm in the future.

Mr. Marcalus, a director of the Company and the Bank, is a member of Marcal Paper Mills, Inc. During 2004, Marcal Paper Mills, Inc. received $76,325 for subletting space to the Bank. The Company expects to transact business with this firm in the future.

Mr. Schepisi, a director of the Company and the Bank, is a member of Schepisi & McLaughlin, a firm that renders various legal services to the Company and its subsidiaries. During 2004, Schepisi & McLaughlin received fees for legal services of $70,142, primarily representing fees for loan related matters, the bulk of which was reimbursed to the Bank by its customers. The Company expects to transact business with this firm in the future.