REVOCABLE PROXY

                   PEEKSKILL FINANCIAL CORPORATION
                   SPECIAL MEETING OF STOCKHOLDERS

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                           __________, 2000
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     The undersigned hereby appoints  __________________  and __________________
as the official  Proxy  Committee of the board of directors  with full powers of
substitution,  as attorneys and proxies for the undersigned,  to vote all shares
of common stock of Peekskill  Financial  Corporation  which the  undersigned  is
entitled  to  vote  at a  special  meeting  of  stockholders,  to be held at the
__________________  located at  __________________  ,  Peekskill,  New York,  on
__________________  ,  __________________ , 2000, at _____ p.m., local time, and
at any and all adjournments thereof, as follows:


                                                 FOR      AGAINST      ABSTAIN

1.   To approve the adoption of the Agreement    [ ]        [ ]          [ ]
     Plan of Merger dated February 16, 2000
     between Sound Federal Bancorp, Inc.,
     Sound Federal Savings and Loan Association
     and Peekskill Financial Corporation.

2.   In their  discretion,  upon such other
     matters as may properly come before
     the meeting.


     THE BOARD OF  DIRECTORS  RECOMMENDS A VOTE "FOR" THE ADOPTION OF THE MERGER
AGREEMENT.


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THIS PROXY WILL BE VOTED AS DIRECTED, BUT IF NO INSTRUCTIONS ARE SPECIFIED, THIS
PROXY  WILL BE VOTED FOR THE  PROPOSITION  STATED.  THIS PROXY CARD WILL ALSO BE
USED TO PROVIDE  VOTING  INSTRUCTIONS  TO THE  TRUSTEE  FOR ANY SHARES OF COMMON
STOCK OF PEEKSKILL  FINANCIAL  CORPORATION  ALLOCATED TO PARTICIPANTS  UNDER THE
PEEKSKILL  FINANCIAL  CORPORATION  EMPLOYEE STOCK  OWNERSHIP  PLAN. IF ANY OTHER
BUSINESS IS PRESENTED AT SUCH MEETING, THIS PROXY WILL BE VOTED AS DIRECTED BY A
MAJORITY OF THE BOARD OF DIRECTORS.  AT THE PRESENT TIME, THE BOARD OF DIRECTORS
KNOWS OF NO OTHER BUSINESS TO BE PRESENTED AT THE MEETING.
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          THIS PROXY IS SOLICITED BY THE BOARD OF DIRECTORS


     Should the  undersigned be present and elect to vote at the special meeting
or at any  adjournment  thereof  and  after  notification  to the  Secretary  of
Peekskill Financial Corporation at the Meeting of the stockholder's  decision to
terminate  this proxy,  then the power of said  attorneys  and proxies  shall be
deemed terminated and of no further force and effect.

     The undersigned  acknowledges receipt from Peekskill Financial  Corporation
prior to the execution of this proxy of notice of the special meeting, and proxy
statement dated ____________, 2000.



Dated:  ________________, _____




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PRINT NAME OF STOCKHOLDER                  PRINT NAME OF STOCKHOLDER





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SIGNATURE OF STOCKHOLDER                   SIGNATURE OF STOCKHOLDER


Please sign  exactly as your name  appears on this proxy card.  When  signing as
attorney,  executor,  administrator,  trustee or guardian, please give your full
title. If shares are held jointly, each holder should sign.




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PLEASE  COMPLETE,  DATE,  SIGN AND MAIL  THIS  PROXY  PROMPTLY  IN THE  ENCLOSED
POSTAGE-PREPAID ENVELOPE.
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