January 2, 2009

To Our Customers and Employees:

You may have seen recent press articles regarding the Bank and Bernard L. Madoff Investment Securities. The press is incomplete and inaccurate.

First, be assured that the Bank has not invested any of its own funds or the funds of its depositors with Madoff, and the Bank has not advised any customer or anybody else to invest with Madoff.

Here are the facts:

• In 1999, at the request of a local company, the Bank replaced another financial institution as the custodian for a number of individuals and entities that were investing with Bernard L. Madoff Investment Securities. Nearly all of these individuals and entities had been investing with Madoff long before the Bank was founded in 1998.

• Each of these Madoff investors entered into a Custodian Agreement with the Bank, and became a custodial client of the Bank. This Agreement reflected the fact that each custodial client directed the Bank to give Madoff “full discretionary authority” to invest the custodial client’s funds. Each custodial client specifically acknowledged in writing that the client had not relied on the Bank in choosing to invest with Madoff.

• In providing custodial services, the Bank was directed by these custodial clients from time to time to transfer funds to Madoff and redeem funds from Madoff. The Bank also performed record keeping, tax reporting and other ministerial services for its custodial clients.

• The Bank never introduced any custodial client or anybody else to Madoff.

• The Bank does not provide investment advice to any of its clients, except with respect to Bank products such as checking accounts, savings accounts and certificates of deposit.

• Again, the Bank did not invest any of its own funds with Madoff.

The Bank continues to work with its custodial clients in accordance with the terms of the Custodian Agreements.

If you have any questions about this letter, please contact Rich Cummings, President of Westport National Bank, at 203.319.6260.

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