Webster Declares Plan to Repurchase 2.4 Million Common Shares and Announces Quarterly Dividend

Jul 23, 2002
WATERBURY, Conn., Jul 23, 2002 (BUSINESS WIRE) -- Webster Financial Corporation (Nasdaq:WBST), the holding company for Webster Bank, announced today that its Board of Directors has authorized the repurchase of up to approximately 2.4 million shares, or 5 percent of Webster's 48 million shares of outstanding common stock.

Today's authorized repurchase is in addition to Webster's existing stock repurchase authorization. In September 2001, Webster's Board of Directors authorized repurchase of 2.5 million shares of which 770,000 shares currently remain to be purchased. With today's announcement to repurchase approximately 2.4 million shares and the existing authorization to purchase 770,000 shares, the total current repurchase authorization is 3.2 million shares.

"Webster's Board of Directors considers the purchase of our shares to be both an attractive investment and an excellent means to increase shareholder value," said James C. Smith, chairman and chief executive officer. "The Board has full confidence in the fundamental strength of the U.S. equities market and in the value of Webster shares. We believe that at recent prices Webster shares present the company an unusual investment opportunity."

Webster will repurchase shares in the open market and unsolicited negotiated transactions, including block purchases, during the next year. With today's announcement Webster has initiated ten stock repurchases since the company became public in 1986. Six of those buybacks have taken place in the past eight years.

Webster's dividend is payable on August 19, 2002 to shareholders of record on August 5, 2002. This is the 60th consecutive dividend since Webster first paid a dividend in 1987.

Webster Financial Corporation is the holding company for Webster Bank and Webster Insurance. With $12 billion in assets, Connecticut-based Webster Bank provides business and consumer banking, mortgage, insurance, trust and investment services through more than 100 banking offices, 210 ATMs and the Internet (www.websteronline.com). Webster Financial Corporation is majority owner of Chicago-based Duff & Phelps, LLC, a leader in financial advisory services, and Webster Bank owns Center Capital Corporation, an equipment leasing and financing company headquartered in Farmington, Connecticut and Webster Trust Company, N.A.

For more information about Webster, including past press releases and the latest Annual Report, visit the Webster Bank web site at www.websteronline.com.

CONTACT:
Webster Financial Corporation
Media Contact:
Clark Finley, 203-578-2429
cfinley@websterbank.com
or
Arthur House, 203-578-2391
ahouse@websterbank.com
or
Investor Contact:
James M. Sitro, 203-578-2399
jsitro@websterbank.com

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