EXHIBIT 99.1




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


             PENNFED FINANCIAL SERVICES, INC. DECLARES 2-FOR-1 SPLIT
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                      IN THE FORM OF A 100% STOCK DIVIDEND
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     WEST ORANGE,  NJ,  September 29, 2004  (Nasdaq:PFSB)  - Joseph L. LaMonica,
President and Chief Executive Officer of PennFed Financial Services,  Inc., West
Orange,  New Jersey,  announced  today that  PennFed  Financial  Services,  Inc.
declared  a  2-for-1  split in the form of a 100%  stock  dividend,  payable  on
October 29, 2004 to stockholders of record on October 15, 2004. Generally, under
the  terms  of this  split in the form of a stock  dividend,  PennFed  Financial
Services, Inc.'s stockholders will receive a dividend of 1 share for every share
held. The dividend will be paid from  authorized  but unissued  shares of common
stock of the Company. The par value of PennFed Financial Services,  Inc.'s stock
will not be affected by the split and will remain at $.01 per share.

     Mr.  LaMonica  stated that "the Company has declared  this stock split as a
means to reduce the price per share and to increase the market liquidity for the
purpose of enhancing  the  security's  appeal to both private and  institutional
investors."

     PennFed  Financial  Services,  Inc. is the holding company for Penn Federal
Savings Bank, which maintains 24 New Jersey branch offices.  The Bank's deposits
are insured by the Federal Deposit Insurance Corporation.


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     This  release  contains  forward-looking  statements  that are  intended to
identify  "forward-looking   statements"  within  the  meaning  of  the  Private
Securities  Litigation  Reform  Act of 1995.  These  statements  are  subject to
certain  risks and  uncertainties,  including,  among other  things,  changes in
economic  conditions  in the  Company's  market  area,  changes in  policies  by
regulatory agencies,  fluctuations in interest rates and demand for loans in the
Company's  market  area,  the  relationship  of short-  term  interest  rates to
long-term interest rates, competition and terrorist acts that could cause actual
results  to differ  materially  from  historical  earnings  and those  presently
anticipated  or projected.  The Company  wishes to caution  readers not to place
undue  reliance on any  forward-looking  statements,  which speak only as of the
date made.  The Company  wishes to advise readers that the factors listed above,
as well as other factors,  could affect the Company's financial  performance and
could cause the Company's actual results for future periods to differ materially
from any opinions or statements  expressed with respect to future periods in any
current statements.

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