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WSFS announces loss in Cash Connect division; due to business with bankrupt armored car firm

January 27, 2002

WILMINGTON, Del. -- WSFS Financial Corporation (Nasdaq: WSFS), the parent company of Wilmington Savings Fund Society, FSB (WSFS) reported that in the first quarter of 2001, WSFS became aware of missing or misappropriated funds related to its business with Tri-State Armored Services, a New Jersey-based armored car carrier engaged to supply cash to ATMs operated by customers of Cash Connect, the ATM division of WSFS.

According to a release issued by WSFS, ongoing criminal investigations have resulted in the arrest of certain armored car carrier employees. Tri-State has subsequently declared bankruptcy.

Management estimates that the related net loss, after taxes, to WSFS will be between $450,000 and $650,000 and will be charged to earnings in the first quarter of 2001. WSFS believes it will reduce any loss by, among other things, pursuing restitution from the responsible parties and making claims in bankruptcy proceedings and through various insurance policies. Management of WSFS can make no assurance, however, that these efforts will result in any recovery by the company.

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