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HUDSON CITY OUTSOURCES IP WORK TO FSI

Glen Rock, New Jersey, September 10,2004 – Financial Services, Inc., a leading provider of data processing, item processing and Internet services to financial institutions nationwide, announced today that Hudson City Savings Bank has signed a multi-year deal to extend its contract for inclearing services and to outsource its return item processing and statement rendering to FSI, tasks the bank had been doing in-house.

Hudson City will be taking advantage of the full suite of image products available at FSI, including a browser-based E-Desk research system, a fraud protection module, and an image interface for Internet home banking. With the move, the bank will also be converting its checking accounts to image statements.
Last year, the bank had made the decision to outsource its entire item processing operation. After a competitive RFP process spearheaded by an outside consultant, Hudson City chose FSI over several national servicers.

ABOUT FINANCIAL SERVICES, INC.
Financial Services, Inc., located Glen Rock, New Jersey, provides data processing, item processing and Internet services to over 600 clients in the U.S. Founded in 1954, FSI's commitment to quality services for the banking industry has been unparalleled by any other servicer anywhere in the country. As one of the largest independently-owned solution providers to the banking services industry, FSI provides consistent, quality service to banks ranging in size from de novo community institutions to large, multi-billion dollar regionals. Its FSIWebs division provides Web hosting, design and development, as well as co-located, dedicated and managed server solutions and disaster recovery services. For more information, call 888-374-6200, email rsassos@insidefsi.net, or visit www.insidefsi.net.


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