Nationwide Bank and NFCU Announce NCUA Approval of Application to Seek Member Vote on Proposed Merger

COLUMBUS, Ohio, July 20 /PRNewswire/ -- Nationwide Federal Credit Union (NFCU) and Nationwide Bank today announced that the National Credit Union Administration (NCUA) approved the credit union's application to merge with Nationwide Bank. The decision, made today at NCUA's meeting, will allow the credit union to now seek membership agreement for the transaction. Both Nationwide Bank and NFCU said that the approval marked an important step forward in the process.

"Today's decision by NCUA propels us into the next phase of this process," said Paula A. Edwards, President and CEO of NFCU. "We have worked hard -- and will continue to work hard -- to demonstrate how this path is the best path for NFCU members. With NCUA's approval today, the credit union will focus on discussing with our members how this merger will create one strong institution.

"I appreciate NCUA's efficient and diligent review of our application, and I hope to continue our open dialogue as we move forward."

The vote is anticipated to be held in the fall. NFCU members will be receiving three mailings throughout the summer and into the fall. In these mailings the credit union will provide NCUA legal disclosures and the full terms and conditions of the merger agreement between the bank and the credit union. The final mailing will contain the ballot for members to vote.

"We're pleased that the NCUA recognizes the importance of letting members decide the best way to protect their value in the credit union," said John Skubik, President of Nationwide Bank. "We will continue to work with the credit union to ensure members feel valued and informed throughout the process."

In June, Nationwide Bank and NFCU announced their intention to seek member approval for a merger between the two organizations. Before the credit union could officially solicit membership approval, NCUA had to approve its application.

Under the terms of the agreement, Nationwide Financial Services, Inc. will pay $79 million for the members' ownership interest in the credit union. These funds will be credited to member accounts on a pro-rata basis according to the deposit account balances as of March 31, 2006. Today's announcement follows the NFCU Board's unanimous support of the merger.

After the merger, the new Nationwide Bank, a subsidiary of Nationwide Financial, will serve customers much in the same way the NFCU currently operates, offering the same products, services and convenience members currently enjoy. Joining forces with Nationwide Bank provides protection of NFCU member value, while ensuring the continuation of the high quality services members expect.

Nationwide Federal Credit Union was established in 1951. NFCU is the largest credit union in Central Ohio ending 2005 with more than $523 million in assets. Serving more than 44,000 members, NFCU serves Nationwide associates, retirees, agents and their immediate family and household members. NFCU ranks as the fourth largest credit union in Ohio. (1)

Nationwide Bank is a wholly owned subsidiary of Nationwide Financial Services, Inc. Nationwide Financial Services, Inc. , a publicly traded company based in Columbus, Ohio, provides a variety of financial services that help consumers invest(2) and protect their long-term assets, and offers retirement plans and services through both public-and private-sector employers.

Nationwide Financial Services, Inc. is part of the Nationwide group of companies, which offers diversified insurance and financial services. The group is led by Nationwide Mutual Insurance Company, which is ranked No. 98 on the Fortune 100 based on 2005 revenue.(3) For more information, visit http://www.nationwide.com/.

(1) as reported by CUNA and TFP (2) Nationwide Investment Services Corporation, member NASD (3) Fortune Magazine, April 2006

Nationwide and the Nationwide Framemark are federally registered service marks of Nationwide Mutual Insurance Company. On Your Side is a service mark of Nationwide Mutual Insurance Company.