PRO FORMA VALUATION UPDATE REPORT



                    PRUDENTIAL BANCORP, INC. OF PENNSYLVANIA



                               HOLDING COMPANY FOR

                             PRUDENTIAL SAVINGS BANK

                           PHILADELPHIA, PENNSYLVANIA



                                  DATED AS OF:

                                NOVEMBER 19, 2004



                                  PREPARED BY:



                              RP(R) FINANCIAL, LC.

                             1700 NORTH MOORE STREET

                                   SUITE 2210

                            ARLINGTON, VIRGINIA 22209



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RP(R) FINANCIAL, LC.

Financial Services Industry Consultants



                                                               November 19, 2004



Board of Directors

Prudential Savings Bank

1834 West Oregon Avenue

Philadelphia, Pennsylvania 19145-4725



Members of the Board:



         At your request, we have completed and hereby provide an updated

independent appraisal (the "Update") of Prudential Savings Bank (the "Bank")

reflecting the estimated pro forma market value of the Common Stock which is to

be offered in connection with the Plan of Stock Issuance (the "Plan"), described

below.



         This Update is furnished pursuant to the conversion regulations

promulgated by the Commonwealth of Pennsylvania Department of Banking (the

"Department"), the Federal Deposit Insurance Corporation ("FDIC") and the

Federal Reserve Board ("FRB"). This Update has been prepared in accordance with

the written valuation guidelines promulgated by the Office of Thrift Supervision

("OTS"), most recently updated as of October 21, 1994. Such valuation guidelines

are relied upon by the previously referenced agencies in evaluating conversion

appraisals in the absence of such specific written valuation guidelines

separately issued by the respective agencies.



         Our Original Appraisal report, dated August 20, 2004 (the "Original

Appraisal"), is incorporated herein by reference. As in the preparation of our

Original Appraisal, we believe the data and information used herein is reliable;

however, we cannot guarantee the accuracy and completeness of such information.



         This updated appraisal reflects the following noteworthy items: (1) a

review of recent developments in Prudential Savings Bank's financial condition,

including financial data through September 30, 2004; (2) an updated comparison

of Prudential Savings Bank's financial condition and operating results versus

the Peer Group companies identified in the Original Appraisal; and (3) a review

of stock market conditions since the date of the Original Appraisal.



Description of Plan of Stock Issuance



         The Board of Prudential Savings Bank (the "Bank") has adopted a plan of

reorganization pursuant to which the Bank will reorganize into a mutual holding

company structure. As part of the reorganization, the Bank will become a

wholly-owned subsidiary of Prudential Bancorp, Inc.



--------------------------------------------------------------------------------

WASHINGTON HEADQUARTERS



Rosslyn Center                                       Telephone:  (703) 528-1700

1700 North Moore Street, Suite 2210                    Fax No.:  (703) 528-1788

Arlington, VA  22209                             Toll-Free No.:  (866) 723-0594

www.rpfinancial.com                              E-Mail:  mail@rpfinancial.com



<PAGE>



Board of Directors

November 19, 2004

Page 2



of Pennsylvania (the "Company"), a Pennsylvania corporation. Concurrently, the

Company will issue the 55% majority of its common stock to Prudential Mutual

Holding Company (the "MHC"), a Pennsylvania-chartered mutual holding company,

and sell the 45% minority of its common stock to the public the "Minority Stock

Issuance"). It is anticipated that the public shares will be offered in a

subscription offering to the Bank's Eligible Account Holders, Tax-Qualified

Employee Plans including the employee stock ownership plan (the "ESOP"),

Supplemental Eligible Account Holders and Other Members. To the extent that

shares remain available for purchase after satisfaction of all subscriptions

received in the subscription offering, the remaining shares may be offered for

sale in a direct community offering.



Limiting Factors and Considerations



         Our valuation is not intended, and must not be construed, as a

recommendation of any kind as to the advisability of purchasing shares of the

Common Stock. Moreover, because such valuation is necessarily based upon

estimates and projections of a number of matters, all of which are subject to

change from time to time, no assurance can be given that persons who purchase

shares of Common Stock in the Offering will thereafter be able to buy or sell

such shares at prices related to the foregoing valuation of the pro forma market

value thereof.



         RP Financial's valuation herein was determined based on the financial

condition and operations of the Bank as of September 30, 2004, the date of the

financial data included in the regulatory applications and prospectus, and stock

market conditions as of November 19, 2004.



         RP Financial is not a seller of securities within the meaning of any

federal and state securities laws and any report prepared by RP Financial shall

not be used as an offer or solicitation with respect to the purchase or sale of

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