[GREATER ATLANTIC FINANCIAL CORP. LOGO APPEARS HERE]


                        GREATER ATLANTIC FINANCIAL CORP.

         10700 Parkridge Boulevard o Suite P50 o Reston, Virginia 20191
                     o (703) 391-1300 o Fax: (703) 391-1506


NEWS RELEASE

DATE:    FEBRUARY 16, 2006

CONTACT: CHARLES CALOMIRIS
         (914) 722-6905

                      GREATER ATLANTIC FINANCIAL ANNOUNCES
                         CONSEQUENCES OF LIQUIDATION OF
                      GREATER ATLANTIC MORTGAGE CORPORATION

Charles W. Calomiris, the Chairman of the Board of Greater Atlantic Financial
Corp. and its subsidiary, Greater Atlantic Bank, announced today that, "as was
disclosed in our Form 10-Q for the quarter ended December 31, 2005, filed with
the SEC, management anticipates significant one-time losses associated with the
closure of Greater Atlantic Mortgage Corporation (GAMC), the wholly-owned
subsidiary of Greater Atlantic Bank, and the liquidation of GAMC's assets. In
the December 2005 quarter, the bank sustained $1.69 million in losses
attributable to either GAMC operating losses or anticipated liquidation costs
relating to GAMC. Management anticipates approximately $1 million in additional
losses from GAMC for the March 2006 quarter. At this time, we expect no further
losses from GAMC beyond the March quarter.

"Despite these extraordinary losses and their adverse consequences for earnings,
as shown in the Form 10-K for the year ended September 30, 2005 and the Forms
10-Q, the earnings of the banking segment of Greater Atlantic Financial Corp.
(that is, the earnings of Greater Atlantic Bank unrelated to GAMC) has improved
substantially over the past year. The 2005 calendar year loss from the banking
segment was $1.45 million, compared to a $3.02 million loss for the 2004
calendar year. There is every reason to believe that improvements in the banking
segment will continue. Prepayments of our mortgages and securities are still at
historically high levels, and I expect that losses associated with prepayments
will abate. More importantly, we have seen steady progress in our retail
operations. With consulting assistance from Kevin McCabe (a former JPMorgan
Chase executive), we have substantially improved the performance of our branches
over the last year, with deposit growth, new account acquisition and loan volume
all showing solid growth. Changes in our sales and marketing practices,
advertising, compensation and performance management support continued positive
momentum.

"Now that we are putting GAMC's liquidation behind us, we see substantial
continuing potential for improvement ahead. I encourage our stockholders and
customers to look beyond the headline earnings numbers to the strengthening
banking segment earnings performance of the bank. I look forward to a detailed
discussion of our performance, opportunities, and business plan at the upcoming
shareholders meeting on March 29."




         PRIVATE SECURITIES LITIGATION REFORM ACT SAFE HARBOR STATEMENT

THIS RELEASE CONTAINS FORWARD-LOOKING STATEMENTS WITHIN THE MEANING OF THE
FEDERAL SECURITIES LAWS. THESE STATEMENTS ARE NOT HISTORICAL FACTS, BUT
STATEMENTS BASED ON THE COMPANY'S CURRENT EXPECTATIONS REGARDING ITS BUSINESS
STRATEGIES AND THEIR INTENDED RESULTS AND ITS FUTURE PERFORMANCE.
FORWARD-LOOKING STATEMENTS ARE PRECEDED BY TERMS SUCH AS "EXPECTS," "BELIEVES,"
"ANTICIPATES, " "INTENDS" AND SIMILAR EXPRESSIONS.

FORWARD-LOOKING STATEMENTS ARE NOT GUARANTEES OF FUTURE PERFORMANCE. NUMEROUS
RISKS AND UNCERTAINTIES COULD CAUSE OR CONTRIBUTE TO THE COMPANY'S ACTUAL
RESULTS, PERFORMANCE AND ACHIEVEMENTS TO BE MATERIALLY DIFFERENT FROM THOSE
EXPRESSED NR IMPLIED BY THE FORWARD-LOOKING STATEMENTS. FACTORS THAT MAY CAUSE
OR CONTRIBUTE TO THESE DIFFERENCES INCLUDE, WITHOUT LIMITATION, GENERAL ECONOMIC
CONDITIONS, INCLUDING CHANGES IN MARKET INTEREST RATES AND CHANGES IN MONETARY
AND FISCAL POLICIES OF THE FEDERAL GOVERNMENT; LEGISLATIVE AND REGULATORY
CHANGES; AND OTHER FACTORS DISCLOSED PERIODICALLY IN THE COMPANY'S FILINGS WITH
THE SECURITIES AND EXCHANGE COMMISSION.

BECAUSE OF THE RISKS AND UNCERTAINTIES INHERENT IN FORWARD-LOOKING STATEMENTS,
READERS ARE CAUTIONED NOT TO PLACE UNDUE RELIANCE ON THEM, WHETHER INCLUDED IN
THIS REPORT OR MADE ELSEWHERE FROM TIME TO TIME BY THE COMPANY OR ON ITS BEHALF
THE COMPANY ASSUMES NO OBLIGATION TO UPDATE ANY FORWARD-LOOKING STATEMENTS.