EXHIBIT 99.1

RELIANCE BANCORP, INC.
585 STEWART AVENUE                                              (516) 222-9300
GARDEN CITY, NY 11530                                   FAX:    (516) 222-1997

                                                                  NEWS RELEASE

FOR IMMEDIATE RELEASE       September 1, 1998
                            For Information Contact:
                            Paul D. Hagan
                            Senior Vice President-CFO
                            (516) 222-9308 extension 215

                  RELIANCE BANCORP, INC. COMPLETES SIXTH STOCK
            REPURCHASE AND ANNOUNCES SEVENTH STOCK REPURCHASE PROGRAM

Garden City, New York, September 1, 1998

Reliance  Bancorp,  Inc.  (NASDAQ/NMS:RELY)  the holding  company  for  Reliance
Federal  Savings  Bank today  announced  that it has  completed  its  previously
announced  sixth  stock  repurchase  program.  The Company  said it  repurchased
494,000 shares of its  outstanding  common stock,  par value $.01 per share,  in
open market  transactions at an aggregate cost of  approximately  $13.6 million.
Upon  settlement of the last  transaction on or about  September 4, 1998,  there
will be 9,174,438 shares of Reliance Bancorp, Inc. common stock outstanding.

The Company also  announced  that its Board of Directors  approved the Company's
seventh stock  repurchase  plan. The Company has been authorized by its Board of
Directors to repurchase up to 500,000 of the Company's outstanding shares.

Raymond A. Nielsen,  President and Chief Executive Officer stated that the Board
of Directors and management are committed to growing long-term value for Company
stockholders  and believe the  repurchase  of common  stock  represents  a sound
investment of Company funds and a good capital  management  tool. The repurchase
will be made in open-market or privately negotiated transactions, subject to the
availability  of  stock,  acceptable  pricing  of  the  stock  and  such  timing
limitations as may be appropriate.

Reliance Federal Savings Bank is  headquartered  in Garden City, N.Y.  operating
through its administrative  office in Garden City and 30 banking offices located
in the New York counties of Queens,  Nassau and Suffolk. The Bank's deposits are
insured by The Federal Deposit Insurance Corporation.  Additional information on
the   Company   and   Bank   can  be   found   on  our   Internet   website   at
www.reliance-federal.com.