Exhibit 99.1 - Press Release

                        GREATER ATLANTIC FINANCIAL CORP.
                          ELECTS TO DEFER DISTRIBUTIONS
                          ON TRUST PREFERRED SECURITIES

            Reston, Virginia - December 19, 2006. Greater Atlantic Financial
Corp. (Nasdaq: GAFC) (the "Company"), the holding company for Greater Atlantic
Bank (the "Bank"), announced today that it is exercising its right to defer the
regularly scheduled quarterly distribution on its Greater Atlantic Capital Trust
I Cumulative Convertible Trust Preferred Securities (the "Trust Preferred
Securities") scheduled for December 31, 2006.

            On December 13, 2006, the Office of Thrift Supervision advised
Greater Atlantic Bank that it would not approve Greater Atlantic Bank's
application to pay a cash dividend to the Company.

            Accordingly, the Company has determined to exercise its right to
defer the payment of interest on its 6.50% Convertible Junior Subordinated
Debentures Due 2031 ("Subordinated Debentures") related to the Trust Preferred
Securities for an indefinite period (which can be no longer than 20 consecutive
quarterly periods). This and any future deferred distributions will continue to
accrue interest at an annual rate of 6.50% which will be paid when the deferred
distributions are ultimately paid. Management of the Company does not expect to
resume payments on the Subordinated Debentures or the Trust Preferred until the
Office of Thrift Supervision will approve a cash dividend payment from Greater
Atlantic Bank to the Company.

            The Trust Preferred Securities have a cumulative provision.
Therefore, in accordance with generally accepted accounting principles, the
Company will continue to accrue the monthly cost of the Trust Preferred
Securities as it has since issuance. The Company's management also intends to
continue to seek the approval of the Office of Thrift Supervision for the
payment of a cash dividend payment by Greater Atlantic Bank to the Company.

         Greater Atlantic Financial Corp. conducts its business operations
through its wholly owned subsidiary, Greater Atlantic Bank. The Bank offers
traditional banking services to customers through six branches located in
Rockville and Pasadena, Maryland, and Front Royal, New Market, Reston and South
Riding, Virginia.

         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 OR 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.