Nationwide Bank and Nationwide Federal Credit Union Announce Plans to Seek Merger

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Nationwide Bank and Nationwide Federal Credit Union Announce Plans to Seek Merger
        Credit Union members to get $79 million if deal is approved

    COLUMBUS, Ohio, June 16 /PRNewswire/ -- Nationwide Bank and the
Nationwide Federal Credit Union (NFCU) announced today they are jointly
pursuing a merger of the two organizations. NFCU will seek membership
approval for this proposed transaction. The new Nationwide Bank will
combine the strength of the NFCU's member service with Nationwide's
significant resources and wide customer base.
    In an approach that will benefit NFCU members, 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.
    "This merger provides members the same value and the high-quality
services they're accustomed to and protects the members' interests," said
Paula Edwards, president of NFCU. "While members will make the final
decision, we are confident they will see the long-term value this merger
offers."
    The NFCU was established to provide financial services to Nationwide
associates. Sponsored solely by Nationwide, NFCU offices and operations are
housed within Nationwide. 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.
    "The creation of the Nationwide Bank is an important step that allows
Nationwide to deliver the On Your Side promise to more customers through
expanded products and services," said John Skubik, Nationwide Bank
president. "Nationwide values the credit union's commitment to quality
service and plans to continue this commitment while capitalizing on the
talent within the credit union."
    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. (NYSE: NFS), 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.
    Contact:
    Eric Hardgrove (614) 249-6349
    hardgre@nationwide.com
SOURCE Nationwide Financial Services, Inc.
http://www.nationwide.com
http://www.prnewswire.com/comp/607050.html /
CONTACT:
Eric Hardgrove of Nationwide Financial
Services, Inc., +1-614-249-6349, or hardgre@nationwide.com