Patriot Bank Corp. Acquires Pension Benefits, Inc.

Business Editors

POTTSTOWN, Pa.--(BUSINESS WIRE)--Jan. 17, 2003

Patriot Bank Corp. (NASDAQ/NMS:PBIX), parent company of Patriot Bank, today announced the acquisition of Pension Benefits, Inc., a pension benefits service provider headquartered in West Chester, Pennsylvania.

-- 401(k), profit sharing, money purchase and safe harbor plans

-- Plan design, implementation, administration and compliance

-- Employee communication, investment education and advice

-- Trustee/Plan sponsor and participant level investment advice

Pension Benefits will be merged into Patriot Advisors, a division of Patriot that provides a full range of wealth and investment management services as well as certain employee benefits, brokerage and life insurance services.

Pension Benefits is the second acquisition Patriot has made recently solidifying Patriot Advisors. Like the recent acquisition of Bonds & Paulus, Pension Benefits has also been a strategic partner with Patriot Advisors since its formation. This acquisition further demonstrates Patriot Bank's strong commitment to the wealth management and investment business. Jeffrey H. Horstman, founder and President of Pension Benefits, will join Patriot Advisors as Sr. Vice President of the Pension Benefits Group. Richard W. Silliman, a principal who joined the firm in 1992 as Vice President of Pension Benefits, will join Patriot Advisors as Vice President of the Pension Benefits Group.

"We have been working with Pension Benefits for almost a year and we are extremely impressed with their business and their people. They have built a strong company with an excellent reputation in the retirement plan marketplace, known for innovative products and outstanding customer service. Their culture is very much like Patriot's and we think they will be very complementary to our Patriot Advisors initiative," said Richard A. Elko, President and Chief Executive Officer, Patriot Bank Corp.

The ultimate purchase price, which will consist of both cash and common stock, is dependent on the future performance of the acquired business. The acquisition will add approximately $155 million in assets under management and over 125 client relationships with employers who average 50 to 100 employees. The acquisition of Pension Benefits is expected to be non-dilutive to earnings per share in 2003 and accretive thereafter.

Patriot Advisors was created to strengthen and expand existing customer relationships, attract new customer relationships and build a valuable business that generates recurring fee-based income. Patriot Advisors is comprised of four groups:

The Wealth Management Group provides a personalized and comprehensive approach to wealth management, helping families to protect and grow their assets in today's complex financial markets. Services include:

    --  Financial Planning      --  Insurance Management

    --  Investment Advisory     --  Charitable Planning

    --  Estate Planning         --  Private Banking

    --  Tax Planning

The Investment Management Group provides investors with discretionary investment management across a broad range of asset classes and investment styles. Patriot Advisors' investment philosophy applies a disciplined approach to building customized strategies for its clients. Patriot Advisors works with both individual and institutional clients including pension plans, foundations and endowments.

The Brokerage Group offers mutual funds, annuities, 529 college savings plans and long-term care insurance products through its licensed advisors located in Patriot Bank's branches.

The Insurance Group provides sophisticated life insurance solutions and products for wealth management customers, business owners and executives.

Patriot is a $1 billion financial services company operating 17 banking and lending offices in southeastern Pennsylvania. The closing price of Patriot's common stock was $15.75 on January 16, 2003.

In addition to historical information, this information may contain "forward-looking statements" which are made in good faith by Patriot Bank Corp. ("Patriot"), pursuant to the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include statements with respect to Patriot's strategies, goals, beliefs, expectations, estimates, intentions, financial condition, results of operations, future performance and business of Patriot. Statements preceded by, followed by or that include the words "may," "could," "should," "pro forma," "looking forward," "would," "believe," " expect," "anticipate," "estimate," " intend," "plan," or similar expressions generally indicate a forward-looking statement. These forward-looking statements involve risks and uncertainties that are subject to change based on various important factors (some of which, in whole or in part, are beyond Patriot's control). Numerous competitive, economic, regulatory, legal and technological factors, among others, could cause Patriot's financial performance to differ materially from the goals, plans, objectives, intentions and expectations expressed in such forward-looking statements. Patriot cautions that the foregoing factors are not exclusive, and neither such factors nor any such forward-looking statement takes into account the impact that any future acquisition may have on Patriot and any such forward-looking statement. Patriot does not undertake to update any forward-looking statement whether written or oral, that may be made from time to time by or on behalf of Patriot.