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For Immediate Release
                                                 For More Information Contact:
                                                              Carroll E. Amos,
                                                           President and C.E.O.
                                               Greater Atlantic Financial Corp.
                                                                 (703) 390-0340

                   GREATER ATLANTIC FINANCIAL CORP. ANNOUNCES
                 CONVERTIBLE TRUST PREFERRED SECURITIES OFFERING

         (RESTON, VIRGINIA, JANUARY 22, 2002) - The Board of Directors of
Greater Atlantic Financial Corp. (Nasdaq: GAFC) today announced that it will be
distributing to each stockholder of record on February 4, 2002, the right to
purchase .365 shares of 6 1/2% convertible trust preferred securities of Greater
Atlantic Capital Trust I for each share of the Company's common stock owned on
the record date at a purchase price of $10.00 per convertible trust preferred
security. The convertible trust preferred securities will be convertible into
shares of the Company's common stock at a conversion price of $7.00 per share or
one share of the convertible trust preferred security for 1.429 shares of common
stock. The Company anticipates commencing the rights offering early in February,
2002. Details of the offering and the convertible trust preferred securities
will be contained in a prospectus to be mailed to all shareholders.

         Greater Atlantic Financial Corp. conducts its business operations
through its wholly- owned subsidiary, Greater Atlantic Bank and the Bank's
independent, wholly-owned subsidiary, Greater Atlantic Mortgage Corporation.
Greater Atlantic Bank offers traditional banking services to customers through
nine branches located throughout the greater Washington, D.C./Baltimore
Metropolitan area.

         THIS RELEASE MAY CONTAIN FORWARD-LOOKING STATEMENTS WITH RESPECT TO THE
COMPANY'S BELIEFS, PLANS, OBJECTIVES, GOALS, EXPECTATIONS, ANTICIPATIONS,
ESTIMATES, AND INTENTIONS THAT ARE SUBJECT TO SIGNIFICANT RISKS AND
UNCERTAINTIES, AND ARE SUBJECT TO CHANGE BASED ON VARIOUS FACTORS, SOME OF WHICH
ARE BEYOND THE COMPANY'S CONTROL. THE COMPANY DOES NOT UNDERTAKE TO UPDATE ANY
FORWARD-LOOKING STATEMENT, WHETHER WRITTEN OR ORAL, THAT MAY BE MADE FROM TIME
TO TIME ON OR ON BEHALF OF THE COMPANY.

         THIS IS NEITHER AN OFFER TO SELL NOR A SOLICITATION OF AN OFFER TO BUY
CONVERTIBLE PREFERRED SECURITIES. THE OFFER IS MADE ONLY BY THE PROSPECTUS WHICH
WILL ACCOMPANY THE SUBSCRIPTION ORDER FORM. THE COMPANY FILED A REGISTRATION
STATEMENT ON FORM SB-2, INCLUDING A PRELIMINARY PROSPECTUS AND OTHER RELEVANT
DOCUMENTS, CONCERNING THE RIGHTS OFFERING AND THE CONVERTIBLE TRUST PREFERRED
SECURITIES WITH THE SECURITIES AND EXCHANGE COMMISSION (SEC) ON DECEMBER 20,
2001. THE COMPANY WILL FILE A FINAL PROSPECTUS WITH THE SEC BEFORE COMMENCING
THE RIGHTS OFFERING. WE URGE INVESTORS TO READ THE PROSPECTUS AND ANY OTHER
RELEVANT DOCUMENTS FILED WITH THE SEC BECAUSE THEY CONTAIN IMPORTANT
INFORMATION. INVESTORS WILL BE ABLE TO OBTAIN THE DOCUMENTS FREE OF CHARGE AT
THE SEC'S WEBSITE, WWW.SEC.GOV. IN ADDITION DOCUMENTS FILED WITH THE SEC BY THE
COMPANY WILL BE AVAILABLE FREE OF CHARGE FROM THE SECRETARY OF THE COMPANY AT
10700 PARKRIDGE BOULEVARD, SUITE P50, RESTON, VA 20191, TELEPHONE (703)
391-1300. READ THE PROSPECTUS CAREFULLY BEFORE MAKING A DECISION CONCERNING THE
RIGHTS OFFERING.