Exhibit 99.1

FOR IMMEDIATE RELEASE                          Contact:  Claire M. Chadwick, CFO
                                                         973-669-7366, ext. 267


                PENNFED FINANCIAL SERVICES, INC. ANNOUNCES A NEW
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                    STOCK REPURCHASE PROGRAM AND SUBSTANTIAL
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                         COMPLETION OF EXISTING PROGRAM
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     WEST ORANGE,  NJ,  February  27, 2004 - PennFed  Financial  Services,  Inc.
(NASDAQ:PFSB), the holding company for the New Jersey-based Penn Federal Savings
Bank, announced that its Board of Directors authorized a new 5% Stock Repurchase
Program.  Under this new  program,  the Company can  repurchase  up to 5% of its
outstanding shares over the next 18 months,  subject to market  conditions.  The
Company  further  stated  that  it  has  substantially   completed  its  current
Repurchase Program with only 5,400 shares remaining to be repurchased.

     Joseph L.  LaMonica,  President  and Chief  Executive  Officer of  PennFed,
indicated that under the existing program,  the Company had repurchased  334,600
shares from May 20, 2003 through February 27, 2004 at prices ranging from $27.68
to $34.65 per share.  After  completion  of these  repurchases,  the Company had
6,729,551 shares of common stock outstanding.

     Penn Federal Savings Bank maintains 23 branch offices.  The Bank's deposits
are insured by the Federal Deposit Insurance Corporation.

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