Webster to Acquire Phoenix National Trust Company

Dec 18, 2003

WATERBURY, Conn., Dec 18, 2003 (BUSINESS WIRE) -- Webster Financial Corporation (NYSE: WBS) announced today that its principal subsidiary, Webster Bank, has reached a definitive agreement to acquire Phoenix National Trust Company, a wholly-owned subsidiary of The Phoenix Companies, Inc. (NYSE: PNX). The transaction's closing is subject to receipt of regulatory approvals and other customary closing conditions. Terms of the acquisition were not disclosed.

"The addition of Phoenix National Trust Company further advances Webster's strategic plan by broadening and strengthening our wealth management capabilities," stated Webster chairman and chief executive officer James C. Smith. "Today's announcement demonstrates Webster's commitment to growing our investment business and serving the high-net worth market with a competitive array of services. We look forward to forging productive and lasting relationships with our new customer base."

"Webster has had a strong relationship with Phoenix through the bank's offering of Phoenix's annuities, mutual funds and life insurance products," Smith added. "This transaction further strengthens the working relationship between our two companies."

Upon completion of the transaction, Phoenix National Trust will become part of Webster Financial Advisors, the investment and trust division of Webster Bank. Phoenix National Trust Company offers trust, custody and other financial services. Webster Financial Advisors and Webster Investment Services offer premium investment management, trust, private banking and estate planning services for individuals, business owners and not-for-profit institutions, presently serving more than 31,000 clients and has $2.2 billion in assets under management or administration.

"Webster has an excellent reputation and strong commitment to trust services, so we are pleased it is acquiring Phoenix National Trust Company," stated Dona D. Young, chairman, president and CEO of The Phoenix Companies, Inc. "This action is consistent with Phoenix's strategy to focus on its core businesses - life insurance, asset management and annuities for the affluent and high-net-worth markets."

David T. Weston, chief investment officer of Phoenix National Trust, will join Webster Financial Advisors. Charles (Chip) L. Olson, president of Phoenix National Trust, will join Webster Bank in a business development role.

Phoenix National Trust was founded in 1996 as Phoenix Charter Oak Trust and initially served clients in the Northeastern United States. The company converted to a national trust charter in 2002.

Following receipt of regulatory approvals, Webster expects the transaction to close in the first quarter of 2004.

Webster Financial Corporation is the holding company for Webster Bank and Webster Insurance. With more than $14 billion in assets, Webster Bank provides business and consumer banking, mortgage, insurance, trust and investment services through 119 banking offices, 234 ATMs, a Connecticut-based call center and the Internet. Webster Financial Corporation is majority owner of Chicago-based Duff & Phelps, LLC, a leader in financial advisory services. Webster Bank owns the asset-based lending firm Whitehall Business Credit Corporation, the insurance premium finance company Budget Installment Corp., Center Capital Corporation, an equipment finance 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 website at www.websteronline.com.

The Phoenix Companies, Inc. (NYSE:PNX) is a leading provider of wealth management products and services to individuals and institutions. Through a variety of advisors and financial services firms, Phoenix helps the affluent and high net worth accumulate, preserve and transfer their wealth with an innovative portfolio of life insurance, annuity and asset management products and services. With a history dating back to 1851, The Phoenix Companies, Inc. has two principal operating subsidiaries, Phoenix Life Insurance Company and Phoenix Investment Partners, Ltd. The company also offers private placement insurance products through Philadelphia Financial Group, a subsidiary. Phoenix has corporate offices in Hartford, Conn. For more information on Phoenix, visit www.PhoenixWealthManagement.com.

SOURCE: Webster Financial Corporation

Webster Financial Corporation
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Clark Finley, 203-578-2429
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