Webster Completes FIRSTFED Acquisition; Becomes Largest Independent Bank Based in Southern New England

May 17, 2004

WATERBURY, Conn.--(BUSINESS WIRE)--May 17, 2004--Webster Financial Corporation (NYSE:WBS), the holding company for Webster Bank, National Association, announced today the completion of its acquisition of FIRSTFED AMERICA BANCORP, INC., based in Swansea, Massachusetts, and the holding company of First Federal Savings Bank of America. With this transaction, which became effective following the close of business on May 14, 2004, Webster is now the largest independent bank based in southern New England and the 45th largest bank in the nation, as measured by assets. Webster now has $17 billion in assets, market capitalization of $2.4 billion and a 145-branch retail footprint in Connecticut, Massachusetts and Rhode Island.

"Webster is pleased to welcome our FIRSTFED colleagues in the formal completion of our partnership, and we look forward to serving our new markets in Massachusetts and Rhode Island as a strong, unified company," stated Webster chairman and chief executive officer James C. Smith. "Our ability to offer a broad array of competitive banking, insurance and investment products and exceptional customer service will serve our customers in these markets well. We expect to deepen our relationships with our customers and grow our franchise within these markets."

Webster announced its definitive agreement to acquire FIRSTFED in October 2003. As provided in the merger agreement, Webster will now determine the proration of the cash and stock portions of the merger consideration, and will promptly issue a subsequent announcement regarding the results of that determination. FIRSTFED stockholders who made valid merger consideration elections generally will not need to take further action in order to receive the merger consideration; stockholders who did not make a valid election will be receiving a letter of transmittal and related materials to enable them to exchange their certificates representing shares of FIRSTFED common stock for the merger consideration.

Webster Financial Corporation is the holding company for Webster Bank, National Association and Webster Insurance. With $17 billion in assets, Webster provides business and consumer banking, mortgage, insurance, financial planning, trust and investment services through 145 banking offices, 266 ATMs, telephone banking and the Internet. Webster Bank owns the asset-based lending firm Webster Business Credit Corporation, the insurance premium finance company Budget Installment Corp., and Center Capital Corporation, an equipment finance company headquartered in Farmington, Connecticut. For more information about Webster, including past press releases and the latest Annual Report, visit the Webster website at www.websteronline.com.

CONTACT: Webster Financial Corporation
Media:
Meghan Thompson, 203-578-2287
Mthompson@websterbank.com
or
Clark Finley, 203-578-2429
cfinley@websterbank.com
or
Investor Relations:
Terry Mangan, 203-578-2318
tmangan@websterbank.com

SOURCE: Webster Financial Corporation