NEWS
RELEASE





FOR
RELEASE: IMMEDIATELY





WAYNE
SAVINGS BANCSHARES, INC. ANNOUNCES EARNINGS FOR THE QUARTER ENDED SEPTEMBER 30,
2008





Wooster, Ohio (October 23, 2008) –
Wayne Savings Bancshares, Inc. (NASDAQ:WAYN), the stock holding company parent
of Wayne Savings Community Bank, reported net earnings of $601,000 or $0.21 per
diluted share for the second fiscal quarter ended September 30, 2008, compared
to $547,000 or $0.18 per diluted share for the second fiscal quarter ended
September 30, 2007.  The increase in earnings was primarily due to an
increase in net interest income, resulting from decreased interest expense on
deposits, partially offset by decreased interest income on loans and
investments.





Net interest income increased $232,000
for the quarter ended September 30, 2008, compared to the quarter ended
September 30, 2007.  Interest income decreased $361,000 during the
2008 quarter mainly as a result of lower overall market interest rates during
the 2008 quarter compared to the 2007 quarter and the corresponding impact on
new originations and existing adjustable rate loans.  Interest expense
decreased $593,000 during the quarter as a result of lower deposit balances and
lower market interest rates being reflected in rates paid on certificates of
deposit, money market deposit accounts and advances from the Federal Home Loan
Bank of Cincinnati, partially offset by a higher volume of borrowings used to
replace decreased deposit balances.  Noninterest income decreased
$9,000, due primarily to a $21,000 reduction in gain on sale of real estate
acquired through foreclosure, partially offset by a $5,000 increase in trust
department income and an $8,000 increase in service
charges.  Noninterest expense increased by $55,000, mainly due to
increased occupancy and state franchise tax expense.  Compensation
expense decreased by $4,000 during the quarter, as full time equivalent staff
decreased from 115 at September 30, 2007 to 111 at September 30,
2008.





A
provision for loan losses of $100,000 was made for the 2008 quarter compared to
$25,000 provided during the 2007 quarter, based on management’s assessment of
probable incurred losses in the portfolio.  The increase was mainly
due to management’s analysis of economic factors in the Company’s market area
and the negative change in those factors from the 2007 quarter to the 2008
quarter.





For the
six month period ended September 30, 2008, net earnings totaled $1,132,000 or
$0.39 per diluted share, compared to net earnings of $1,070,000 or $0.35 per
diluted share for the six months ended September 30, 2007.





Net interest income increased $295,000
for the six months ended September 30, 2008 compared to the six months ended
September 30, 2007.  Interest income decreased $628,000 for the 2008
six month period compared to the same period in 2007, as a result of lower
overall market interest rates during the 2008 period compared to the 2007 period
and the corresponding impact on new originations and existing adjustable rate
loans.  Interest expense decreased $923,000 compared to the prior year
period as a result of decreased balances and rates paid on certificates of
deposit, money market deposit accounts and advances from the Federal Home Loan
Bank of Cincinnati, partially offset by a higher volume of borrowings used to
replace decreased deposit balances.






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Noninterest
income decreased $28,000, due primarily to a $21,000 reduction in gain on sale
of real estate acquired through foreclosure, a $5,000 decrease in trust
department income and a $4,000 decrease in income on bank owned life insurance,
partially offset by a $2,000 increase in service charges.  Noninterest
expense increased by $76,000, primarily due to increased occupancy and franchise
tax expense.  Compensation expense decreased by $5,000 for the period
as increases in salary and benefits expense were offset by reductions in
staff.





A
provision for loan losses of $161,000 was made during the six months ended
September 30, 2008 compared to $55,000 provided 2007 period.  The
increase was mainly due to management’s analysis of economic factors in the
Company’s market area and the negative change in those factors from the 2007
period to the 2008 period.





According to Phillip E. Becker,
President and Chief Executive Officer, “During a period in which historic
dislocations and interventions have occurred in financial markets, combined with
an increasingly difficult economic environment, the Company has continued its
focus on the management of credit risk through the disciplined underwriting of
credit to maintain strong credit performance and aggressive work with delinquent
borrowers to minimize credit losses.  The Company continues to serve
customer needs while carefully managing noninterest expense.  In
addition, the Company has continued to exercise discipline in the pricing of
deposits in the face of very strong competition from national competitors
seeking to meet their liquidity needs though the acquisition of high rate retail
deposits.”





At September 30, 2008, Wayne Savings
Bancshares, Inc. reported total assets of $396.3 million, down from total assets
of $401.6 million at March 31, 2008.  The decrease in assets was
primarily due to a decrease in cash balances and investment securities,
partially offset by an increase in loans.  Deposits at September 30,
2008 were $309.7 million, a decrease of $8.0 million, or 2.5% from $317.7
million at March 31, 2008.  The decrease in deposits was primarily due
to management’s decision to not compete aggressively with high rate retail CDs
offered by competitors in the Company’s market area.  Borrowed funds
at a cost lower than retail deposit rates were used to partially offset the
decrease in deposits.





Stockholders’
equity at September 30, 2008 amounted to $32.6 million, or 8.23% of total
assets, compared to $34.1 million at March 31, 2008, a decrease of $1.5 million,
primarily due to an increase in accumulated other comprehensive loss to reflect
the decline in the value of available for sale securities, and, to a lesser
extent, the payment of dividends, the completion of the Company’s stock buyback
program, and the adoption of the EITF 06-4 accounting standard, requiring a
reduction of equity and recognition of a liability for post-retirement split
dollar life insurance benefits, all of which were partially offset by net
earnings.











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Established in 1899, Wayne Savings
Community Bank, the wholly owned subsidiary of Wayne Savings Bancshares, Inc.,
has eleven full-service banking locations in the communities of Wooster,
Ashland, Millersburg, Rittman, Lodi, North Canton, and Creston,
Ohio.





Statements
contained in this news release which are not historical facts may be
forward-looking statements as that term is defined in the Private Securities
Litigation Reform Act of 1995. Such forward-looking statements are subject to
risks and uncertainties which could cause actual results to differ materially
from those currently anticipated due to a number of factors. Factors which could
result in material variations include, but are not limited to, changes in
interest rates which could affect net interest margins and net interest income,
competitive factors which could affect net interest income and noninterest
income, changes in demand for loans, deposits and other financial services in
the Company's market area; changes in asset quality, general economic conditions
as well as other factors discussed in documents filed by the Company with the
Securities and Exchange Commission from time to time. The Company undertakes no
obligation to update these forward-looking statements to reflect events or
circumstances that occur after the date on which such statements were
made.







CONTACT
      PERSON:
            H.
      STEWART FITZ GIBBON IIIEXECUTIVE
      VICE PRESIDENTCHIEF
      FINANCIAL OFFICER(330)
      264-5767










WAYNE
      SAVINGS BANCSHARES, INC.CONDENSED
      CONSOLIDATED BALANCE SHEETS(Dollars
      in thousands, except per share data)September 30, 2008
              
              
              March 31, 2008(Unaudited)ASSETSCash
      and cash equivalents
              
              $
              7,326
              
              
              $
              13,063Investment
      securities, net (1)
              
              
              113,229
              
              
              
              121,410Loans
      receivable, net
              
              
              251,349
              
              
              
              242,255Federal
      Home Loan Bank stock
              
              
              5,025
              
              
              
              4,892Premises
      & equipment
              
              
              7,782
              
              
              
              8,012Foreclosed
      assets held for sale, net
              
              
              125
              
              
              
              93Other
      assets
              
              
              11,474
              
              
              
              11,859TOTAL  ASSETS
              
              $
              396,310
              
              
              $
              401,584LIABILITIES
      AND STOCKHOLDERS' EQUITYDeposit
      accounts
              
              $
              309,711
              
              
              $
              317,731Other
      short-term borrowings
              
              
              9,535
              
              
              
              7,287Federal
      Home Loan Bank Advances
              
              
              41,000
              
              
              
              38,500Accrued
      interest payable and other liabilities
              
              
              3,436
              
              
              
              3,962TOTAL
      LIABILITIES
              
              
              363,682
              
              
              
              367,480Common
      stock (3,978,731 shares of $.10 par value issued)
              
              
              398
              
              
              
              398Additional
      paid-in capital
              
              
              36,148
              
              
              
              36,127Retained
      earnings
              
              
              12,413
              
              
              
              12,450Shares
      acquired by ESOP
              
              
              (1,097
              )
              
              
              (1,097
              )Treasury
      Stock, at cost (974,618 and 969,627 shares at September 30, 2008
      andMarch
      31, 2008, respectively)
              
              
              (14,530
              )
              
              
              (14,481
              )Accumulated
      other comprehensive income (loss)
              
              
              (704
              )
              
              
              707TOTAL
      STOCKHOLDERS' EQUITY
              
              
              32,628
              
              
              
              34,104TOTAL
      LIABILITIES AND STOCKHOLDERS' EQUITY
              
              $
              396,310
              
              
              $
              401,584(1)  Includes
      held to maturity classifications.











WAYNE
      SAVINGS BANCSHARES, INC.CONDENSED
      CONSOLIDATED STATEMENTS OF INCOME(Dollars
      in Thousands, except per share data -- unaudited)Three
      Months Ended
              
              
              Six
      Months EndedSeptember
      30,
              
              
              September
      30,2008
              
              
              2007
              
              
              2008
              
              
              2007Interest
      income
              
              $
              5,432
              
              
              $
              5,793
              
              
              $
              10,864
              
              
              $
              11,492Interest
      expense
              
              
              2,382
              
              
              
              2,975
              
              
              
              4,969
              
              
              
              5,892Net
      interest income
              
              
              3,050
              
              
              
              2,818
              
              
              
              5,895
              
              
              
              5,600Provision
      for loan losses
              
              
              100
              
              
              
              25
              
              
              
              161
              
              
              
              55Net
      interest income after provision for loan losses
              
              
              2,950
              
              
              
              2,793
              
              
              
              5,734
              
              
              
              5,545Noninterest
      income
              
              
              460
              
              
              
              469
              
              
              
              889
              
              
              
              9172,585
              
              
              
              2,530
              
              
              
              5,100
              
              
              
              5,024Income  before
      federal income taxes
              
              
              825
              
              
              
              732
              
              
              
              1,523
              
              
              
              1,438Provision
      for federal income taxes
              
              
              224
              
              
              
              185
              
              
              
              391
              
              
              
              368Net
      income
              
              $
              601
              
              
              $
              547
              
              
              $
              1,132
              
              
              $
              1,070Earnings
      per shareBasic
              
              $
              0.21
              
              
              $
              0.18
              
              
              $
              0.39
              
              
              $
              0.35Diluted
              
              $
              0.21
              
              
              $
              0.18
              
              
              $
              0.39
              
              
              $
              0.35Dividends
      per share
              
              $
              0.12
              
              
              $
              0.12
              
              
              $
              0.24
              
              
              $
              0.24












WAYNE
      SAVINGS BANCSHARES, INC.CONSOLIDATED
      FINANCIAL HIGHLIGHTS(Dollars
      in thousands, except per share data - unaudited)For
      the Three Monthsended
      September 30,2008
            
            
            2007Quarterly
      ResultsNet
      Interest Income
            
            $
            3,050
            
            
            $
            2,818Net
      Income
            
            $
            601
            
            
            $
            547Earnings
      Per Share:Basic
            
            $
            0.21
            
            
            $
            0.18Diluted
            
            $
            0.21
            
            
            $
            0.18Return
      on Average Assets (Annualized)
            
            
            0.60
            %
            
            
            0.55
            %Return
      on Average Equity (Annualized)
            
            
            7.38
            %
            
            
            6.44
            %




For
      the Six Monthsended
      September 30,2008
            
            
            2007Year to Date
      ResultsNet
      Interest Income
            
            $
            5,895
            
            
            $
            5,600Net
      Income
            
            $
            1,132
            
            
            $
            1,070Earnings
      Per Share:Basic
            
            $
            0.39
            
            
            $
            0.35Diluted
            
            $
            0.39
            
            
            $
            0.35Return
      on Average Assets (Annualized)
            
            
            0.57
            %
            
            
            0.54
            %Return
      on Average Equity (Annualized)
            
            
            6.94
            %
            
            
            6.27
            %




September
      30,
            
            
            March
      31,2008
            
            
            2008End of Period
      DataTotal
      Assets
            
            $
            396,310
            
            
            $
            401,584Stockholders'
      Equity to Total Assets
            
            
            8.23
            %
            
            
            8.49
            %Shares
      Outstanding
            
            
            3,004,113
            
            
            
            3,009,104Book
      Value Per Share
            
            $
            10.86
            
            
            $
            11.33