[GREATER ATLANTIC FINANCIAL CORP. LETTERHEAD]


Contact:
- -------

David Ritter
(703) 390-0344



                        GREATER ATLANTIC FINANCIAL CORP.
                 ANNOUNCES RESOLUTION OF DEMAND FOR ARBITRATION

         Reston, Virginia - February 9, 2007. Greater Atlantic Financial Corp.
(the "Company"), the holding company for Greater Atlantic Bank (the "Bank"),
announced today that the pending arbitration between the Company, the Bank,
Greater Atlantic Mortgage Corporation and Carroll E. Amos, President and Chief
Executive of the Company and the Bank, and Stamm Mortgage Management, Inc.
("Stamm Mortgage") and T. Mark Stamm, President of Stamm Mortgage, has been
mutually and amicably resolved. The parties entered into a mutual release on
February 9, 2007, resolving any and all related claims and controversies
between the parties and obviating the need for all further arbitration and legal
proceedings. The resolution of the arbitration should not be construed as an
assertion or admission of liability on the part of any of the parties, as all
parties expressly deny any and all liability, improper conduct or wrongdoing.

         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.