FOR IMMEDIATE RELEASE : June 25, 1998

CONTACT:  Cathy Califano, S.V.P./C.F.O., Haven Bancorp, Tel.  (718) 850-1203
          Hal Levine, The Levine Group, Tel.  (212) 682-8875


           HAVEN BANCORP'S SECOND QUARTER EARNINGS AFFECTED BY INITIAL
                   RESULTS FROM INTERCOUNTY MORTGAGE PURCHASE

         WOODHAVEN, N.Y.--Haven Bancorp, Inc. (Nasdaq:HAVN), the holding company
for CFS Bank, announced today that its second quarter earnings will be affected
by a one-time revenue reduction associated with the acquisition by CFS Bank of
the assets of InterCounty Mortgage, Inc. The Bank completed the acquisition of
InterCounty's loan production franchise on May 1, 1998. Under the terms of the
purchase agreement, Haven was initially unable to recognize certain servicing
release premiums (SRPs) from InterCounty's loan production pipeline. Starting
July 1, the Bank will begin realizing SRPs from loan production. CFS Bank has
also hired a secondary marketing officer and has established correspondent
relationships with a number of investors. Management continues to expect that
the transaction will not be dilutive to earnings per share in the first twelve
months of operation and will be accretive thereafter.

         Commenting on the news, Philip S. Messina, Chairman and Chief Executive
Officer, said, "We expect the initial loss relating to the InterCounty
acquisition will be progressively recovered from income generated beginning in
the third quarter. Our initial experience with InterCounty confirms our
enthusiasm for its operations and our business plan continues to include a
significant contribution from InterCounty to Haven's 1999 earnings per share."

         Headquartered in Woodhaven, New York, Haven Bancorp, with assets of
over $2.0 billion, is the holding company for CFS Bank, a community-oriented
institution offering deposit products, residential and commercial real estate
loans, and a full range of financial services including discount brokerage,
mutual funds, annuities and insurance through eight full-service banking offices
and forty-four supermarket branches located in all five boroughs of New York
City, Nassau, Suffolk, Rockland and Westchester counties, northern New Jersey
and Connecticut. The Bank provides mortgage banking services through its CFS
InterCounty Mortgage division. The Bank's deposits are insured by the FDIC.

Statements made herein that are forward-looking in nature within the meaning of
Private Securities Litigation Reform Act of 1995 are subject to risks and
uncertainties that could cause actual results to differ materially. Such risks
and uncertainties include, but are not limited to, those related to overall
business conditions particularly in the markets in which Haven operates, fiscal
and monetary policy, the market for mortgage originations and purchases,
competitive products and pricing, credit risk management, changes in regulations
affecting financial institutions and other risks and uncertainties discussed in
the Company's SEC filings, including its 1997 form 10-K. The Company disclaims
any obligation to announce publicly future events or developments that affect
the forward-looking statements herein.