Abraham, Fruchter & Twersky, LLP Announces Class Action Lawsuit to Include Allegedly Additional Improper Actions by Commerce Bancorp, Inc.

NEW YORK -- The law firm of Abraham, Fruchter & Twersky, LLP announces that additional information about possible improper actions by Commerce Bancorp, Inc. ("Commerce Bancorp" or the "Company") (NYSE: CBH) is being investigated and may be included in an amended complaint to be filed against Commerce Bancorp and other defendants. Previously a securities fraud class action complaint was filed on July 22, 2004 on behalf of all persons who purchased the publicly traded securities of Commerce Bancorp on the open market during the period from June 1, 2002 to June 28, 2004, inclusive (the "Class Period").

The complaint, entitled Goldgrab v. Commerce Bancorp, et al., case no. 04-cv-3576 is pending before the Honorable Robert B. Kugler in the United States District Court for the District of New Jersey, and names as defendants, in addition to Commerce Bancorp, Vernon W. Hill, II, the Company's Chief Executive Officer and Chairman of the Board; Ronald A. White, who was a director of Commerce Bank of Pennsylvania ("Commerce PA") from June 2002 until October 2003; Douglas J. Pauls, Chief Financial Officer of Commerce Bancorp throughout the Class Period; Glenn K. Holck, President of Commerce PA during the Class Period; and Stephen M. Umbrell, a regional Vice President of Commerce PA during the Class Period.

The complaint alleges that the defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 by making materially false and misleading representations and omissions in Company press releases and public filings with the Securities and Exchange Commission, primarily in connection with activities that led to a criminal indictment that was filed in the U.S. District Court for the Eastern District of Pennsylvania against a number of individuals, including defendants White, Holck and Umbrell.

Since the time the complaint was filed, additional information has been discovered, which may be included in an amended complaint against the defendants. The amended complaint may include allegations that the Company has been improperly capitalizing expenses, which caused its reported earnings to be artificially increased. Commerce Bancorp seems to have reported unusually high costs in connection with its opening of new branches. These costs may have improperly included ordinary expenses.

An amended complaint may also contain allegations that Commerce Bancorp has an unusually large portfolio of mortgage-backed securities, which may make the Company particularly vulnerable to rising interest rates. Commerce Bancorp has been shifting into collateralized mortgage obligations in recent years, which may also increase the Company's potential exposure as interest rates rise.

In addition, an amended complaint may include allegations about the Company's numerous interconnections with insiders, particularly Chief Executive Officer Hill and his family. For example, since the year 2000, Commerce Bancorp has paid more than $26 million to an architectural and interior design firm owned by Hill's wife. Also since the year 2000, real estate partnerships in which Hill is an investor have received almost $7 million in rent payments from Commerce Bancorp. Additionally, Hill's son earns brokerage commissions as an executive of a company that helps find new branch locations, and Commerce Bancorp pays for use of a golf club that is owned by Hill. Besides Hill and his family, Commerce Bancorp and its subsidiaries have made loans of more than $145 million to executives and directors of the Company.

When the truth of the indictment first began to be publicly revealed on or about June 29, 2004, Commerce Bancorp's stock decreased from a closing price of $64.46 per share on June 28, 2004 to a closing price of $55.01 per share on June 30, 2004. Although the Company has maintained that neither it nor its officers are continuing subjects of the probe, on July 19, 2004, the U.S. Attorney in a filing stated that Commerce Bancorp "remains a subject of on-going criminal and civil investigations." After some of the above additional information was revealed, the Company's stock price decreased further and closed at $48.25 per share on August 5, 2004.

If you purchased Commerce Bancorp securities during the Class Period, you may request that the Court appoint you as a lead plaintiff. In order to serve as lead plaintiff, however, you must meet certain legal requirements set forth in the applicable law and file appropriate papers with the Court no later than 60 days from July 2, 2004. You do not need to seek appointment as a lead plaintiff in order to share in any recovery. Under certain circumstances, one or more class members may together serve as lead plaintiff. You may retain Abraham, Fruchter & Twersky, LLP, or other counsel of your choice, to serve as your counsel in this action.

The law firm of Abraham, Fruchter & Twersky, LLP has significant experience in prosecuting investor class actions and actions involving securities fraud.

If you have any questions concerning this case or your rights or interests with respect to this matter, please contact: Jack G. Fruchter, Esq. or Lawrence D. Levit, Esq. of Abraham, Fruchter & Twersky, LLP, One Penn Plaza, Suite 1910, New York, New York 10119, by telephone at [phone] or [phone] or toll free at [phone], by facsimile at [phone], or by e-mail at [e-mail] or [e-mail].