NEWS
RELEASE





FOR
RELEASE: IMMEDIATELY





WAYNE
SAVINGS BANCSHARES, INC. ANNOUNCES EARNINGS FOR THE QUARTER AND YEAR ENDED MARCH
31, 2008





Wooster, Ohio (April 25, 2008) – Wayne
Savings Bancshares, Inc. (NASDAQ:WAYN), the stock holding company parent of
Wayne Savings Community Bank, reported net income for the fiscal year ended
March 31, 2008 of $2.0 million, or $0.65 per diluted share, compared to net
income of $2.2 million, or $0.68 per diluted share for the fiscal year ended
March 31, 2007.  The decrease in net income for the fiscal year was
primarily due to a decrease in net interest income and increases in general,
administrative and other expense and the provision for losses on loans,
partially offset by increased other income and a decrease in federal income tax
expense.





Net interest income decreased $47,000
for fiscal 2008 compared to fiscal 2007.  Interest income increased
$548,000 during fiscal 2008 from fiscal 2007, as a result of prime rate
increases in fiscal 2007 that continued into the second quarter of fiscal 2008
and a shift in balance sheet composition from lower yielding investment
securities and residential mortgage loans toward higher yielding commercial real
estate loans and mortgage-backed securities.  These increases were
partially offset by subsequent prime rate reductions that began in August 2007
and continued through the end of the 2008 fiscal year.  Interest
expense increased $595,000 during fiscal 2008 from fiscal 2007 as a result of
increased rates paid on certificates of deposit in the first half of the fiscal
year and a shift in deposit composition from savings and checking deposits to
higher rate certificates of deposit and money market accounts, partially offset
by decreases in rates paid on certificates of deposit as short term market rates
moved down during the second half of the fiscal year.  Other income
increased $278,000, mainly due to a $115,000 non-recurring prepayment penalty
associated with a paid off commercial loan relationship, a $25,000 gain
resulting from the required redemption of VISA USA stock following VISA’s
initial public offering, increased trust income, increased earnings on Bank
Owned Life Insurance (BOLI) and increased other income, mainly deposit service
charges and debit card interchange.





The provision for losses on loans
totaled $234,000 for fiscal 2008, an increase of $134,000 from the $100,000
provision recorded in fiscal 2007, based primarily on an increase in
non-performing loans and on management’s evaluation of the delinquency trend in
the overall portfolio, growth in the commercial loan portfolio and economic
conditions in our market area.  Non-performing loans increased to $1.9
million, or 0.77% of net loans at March 31, 2008, compared to $950,000, or 0.40%
of net loans at March 31, 2007.  The increase in non-performing loans
was comprised primarily of three commercial loans secured by real estate
collateral totaling $1.1 million that have experienced payment difficulties and
were placed on non-accrual during the year ended March 31,
2008.  Management has evaluated these three loans for specific
impairment, including obtaining new appraisals, and made the necessary specific
provision to reflect potential impairment.   All three loans are
in the workout process, and based on current information, management expects
that the adjusted carrying values of the loans will be realized.








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General,
administrative and other expense for fiscal 2008 increased by $534,000 or
5.5%.  Compensation expense increased $174,000, or 3.2%, mainly due to
normal salary increases and severance expenses recognized in the fiscal fourth
quarter associated with a restructuring of operations. Franchise tax expense
increased $170,000 or 78% due to the absence in fiscal 2008 of a refund
recognized in fiscal 2007.  Other operating expense increased
$169,000, or 9.0%, mainly due to professional service fees associated with
additional internal audit work in connection with compliance procedures related
to Section 404 of the Sarbanes-Oxley Act of 2002.   Federal
income tax expense decreased by $240,000 due to decreased pre-tax income and an
increasing proportion of tax exempt income due to the purchase of tax exempt
securities in the investment portfolio and the increased BOLI income due to
higher crediting rates during the 2008 period.





For the
fourth fiscal quarter ended March 31, 2008, net income was $448,000, or $0.16
per diluted share, compared to $521,000, or $0.17 per diluted share for the
quarter ended March 31, 2007.  The decrease in net income was
primarily due to an increase in general, administrative and other expense and
the provision for losses on loans, partially offset by increases in net interest
income and other income and a decrease in federal income tax
expense.





Net interest income increased $18,000
for the quarter ended March 31, 2008, compared to the quarter ended March 31,
2007.  Interest income decreased $77,000 during the 2008 quarter
mainly due to prime rate decreases.  Interest expense decreased
$95,000 during the quarter as a result of decreased rates paid on certificates
of deposit and money market deposits, partially offset by a continuing shift in
deposit composition from lower cost savings and checking deposits to higher rate
certificates of deposit and money market accounts.  The provision for
losses on loans increased by $9,000 mainly due to one consumer home equity loan
that has experienced payment difficulties and was placed on non-accrual during
the quarter. Management has evaluated this loan for specific impairment,
including obtaining a new appraisal, and made the necessary provision to reflect
potential specific impairment.   This loan is in the workout
process, and based on current information, management expects that the adjusted
carrying value of the loan will be realized.  Other income increased
$162,000, mainly due to a non-recurring prepayment penalty of $115,000 that was
realized in the 2008 period, along with higher trust income, other service
charges and BOLI income.  General, administrative and other expense
increased $316,000 for the quarter ended March 31, 2008 compared to the quarter
ended March 31, 2007 primarily due to severance expenses incurred as a result of
a restructuring of operations, the absence of a refund during the 2008 period of
franchise tax overpayments realized during the 2007, and additional professional
service fees associated with internal audit and the restructuring of
operations.  Federal income tax expense decreased $72,000 as net
income decreased for the 2008 period compared to the 2007 period.














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According
to Phillip E. Becker, President and Chief Executive Officer, “despite turmoil in
the financial markets and difficult economic conditions, the Company has
maintained its focus on the basics of a successful banking
business.  These basics include pricing discipline in the face of
significant competitive pressure and a focus on credit quality in both
originations and the existing portfolio.  While the fiscal year saw an
increase in loan loss provisions associated with certain borrower relationships,
we believe that those relationships are now adequately provided for and will be
worked out in due course.  As we look to the next fiscal year, these
basics, along with continued emphasis on the control of non-interest expense,
will be the foundation for enhancing shareholder value.”





At March 31, 2008, Wayne Savings
Bancshares, Inc. reported total assets of $401.6 million, a decrease of $4.1
million or 1.0% from total assets of $405.7 million at March 31,
2007.  Deposits decreased $8.5 million or 2.5% to $325.0 million from
$333.5 million at March 31, 2007.   Stockholders’ equity at March
31, 2008 amounted to $34.1 million, or 8.49% of total assets, compared to $34.4
million, or 8.49% of total assets at March 31, 2007.  The decrease in
stockholders’ equity was due to the repurchase of shares and the payment of
dividends, partially offset by the addition of the net income discussed above
and an increase in accumulated other comprehensive income.





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.CONSOLIDATED
      BALANCE SHEETS(Dollars
      in thousands, except per share data)March 31,
      2008
            
            
            March 31,
      2007(Unaudited)ASSETSCash,
      cash equivalents, & investment securities (1)
            
            $
            48,594
            
            
            $
            71,908Mortgage-backed
      securities, net (1)
            
            
            85,879
            
            
            
            69,065Loans
      receivable, net
            
            
            242,487
            
            
            
            240,049Federal
      Home Loan Bank stock
            
            
            4,892
            
            
            
            4,829Office
      premises & equipment, net
            
            
            8,012
            
            
            
            8,179Real
      estate acquired through foreclosure
            
            
            93
            
            
            
            0Other
      assets
            
            
            11,627
            
            
            
            11,707TOTAL  ASSETS
            
            $
            401,584
            
            
            $
            405,737LIABILITIES
      AND STOCKHOLDERS' EQUITYDeposit
      accounts
            
            $
            325,018
            
            
            $
            333,540Advances
      from Federal Home Loan Bank
            
            
            38,500
            
            
            
            34,500Advances
      by borrowers for taxes & insurance
            
            
            676
            
            
            
            616Accounts
      payable on mortgage loans serviced for others
            
            
            182
            
            
            
            197Other
      liabilities
            
            
            3,104
            
            
            
            2,451TOTAL
      LIABILITIES
            
            
            367,480
            
            
            
            371,304Common
      stock (3,978,731 shares of $.10 par value issued at both March 31, 2008
      and 2007)
            
            
            398
            
            
            
            398Additional
      paid-in capital
            
            
            36,127
            
            
            
            36,106Retained
      earnings
            
            
            12,450
            
            
            
            11,982Less
      required contributions for shares acquired by Employee Stock Ownership
      Plan
            
            
            (1,097
            )
            
            
            (1,158
            )Less
      Treasury Stock (969,627 and 784,622 shares at March 31, 2008
      andMarch
      31, 2007, respectively)
            
            
            (14,481
            )
            
            
            (12,419
            )Accumulated
      other comprehensive income (loss)
            
            
            707
            
            
            
            (476
            )TOTAL
      STOCKHOLDERS' EQUITY
            
            
            34,104
            
            
            
            34,433TOTAL
      LIABILITIES AND STOCKHOLDERS' EQUITY
            
            $
            401,584
            
            
            $
            405,737(1)  Includes  available
      for sale classifications.











WAYNE
      SAVINGS BANCSHARES, INC.CONSOLIDATED
      INCOME STATEMENTS(Dollars
      in Thousands -- unaudited)Three
      Months Ended
              
              
              Twelve
      Months EndedMarch
      31,
              
              
              March
      31,2008
              
              
              2007
              
              
              2008
              
              
              2007Interest
      income
              
              $
              5,640
              
              
              $
              5,717
              
              
              $
              22,958
              
              
              $
              22,410Interest
      expense
              
              
              2,871
              
              
              
              2,966
              
              
              
              11,793
              
              
              
              11,198Net
      interest income
              
              
              2,769
              
              
              
              2,751
              
              
              
              11,165
              
              
              
              11,212Provision
      for losses on loans
              
              
              39
              
              
              
              30
              
              
              
              234
              
              
              
              100Net
      interest income after provision for loan losses
              
              
              2,730
              
              
              
              2,721
              
              
              
              10,931
              
              
              
              11,112Other
      income
              
              
              546
              
              
              
              384
              
              
              
              1,921
              
              
              
              1,643General,
      administrative, and other expense
              
              
              2,711
              
              
              
              2,395
              
              
              
              10,278
              
              
              
              9,744Income  before
      federal income taxes
              
              
              565
              
              
              
              710
              
              
              
              2,574
              
              
              
              3,011Federal
      income taxes
              
              
              117
              
              
              
              189
              
              
              
              610
              
              
              
              850Net
      income
              
              $
              448
              
              
              $
              521
              
              
              $
              1,964
              
              
              $
              2,161Earnings
      per shareBasic
              
              $
              0.16
              
              
              $
              0.17
              
              
              $
              0.65
              
              
              $
              0.68Diluted
              
              $
              0.16
              
              
              $
              0.17
              
              
              $
              0.65
              
              
              $
              0.68Dividends
      per share
              
              $
              0.12
              
              
              $
              0.12
              
              
              $
              0.48
              
              
              $
              0.48















WAYNE
      SAVINGS BANCSHARES, INC.CONSOLIDATED
      FINANCIAL HIGHLIGHTS(Dollars
      in thousands, except per share data - unaudited)For
      the Three Monthsended
      March 31,2008
              
              
              2007Quarterly
      ResultsNet
      Interest Income
              
              $
              2,769
              
              
              $
              2,751Net
      Income
              
              $
              448
              
              
              $
              521Earnings
      Per Share:Basic
              
              
              0.16
              
              
              
              0.17Diluted
              
              
              0.16
              
              
              
              0.17Return
      on Average Assets (Annualized)
              
              
              0.45
              %
              
              
              0.51
              %Return
      on Average Equity (Annualized)
              
              
              5.21
              %
              
              
              5.97
              %
  For
      the Twelve Monthsended
      March 31,2008
              
              
              2007Year to Date
      ResultsNet
      Interest Income
              
              $
              11,165
              
              
              $
              11,212Net
      Income
              
              $
              1,964
              
              
              $
              2,161Earnings
      Per Share:Basic
              
              
              0.65
              
              
              
              0.68Diluted
              
              
              0.65
              
              
              
              0.68Return
      on Average Assets
              
              
              0.49
              %
              
              
              0.54
              %Return
      on Average Equity
              
              
              5.73
              %
              
              
              6.09
              %
  March
      31,
              
              
              March
      31,2008
              
              
              2007End of Period
      DataTotal
      Assets
              
              $
              401,584
              
              
              $
              405,737Stockholders'
      Equity to Total Assets
              
              
              8.49
              %
              
              
              8.49
              %Shares
      Outstanding
              
              
              3,009,104
              
              
              
              3,194,109Book
      Value Per Share
              
              $
              11.33
              
              
              $
              10.78