AUGUST 27, 2009
PRESS RELEASE


              GREATER ATLANTIC FINANCIAL CORP. STOCKHOLDERS APPROVE
                      MERGER WITH MIDATLANTIC BANCORP, INC.


Reston,  VA. - August 27, 2009 - Greater Atlantic  Financial Corp. (Pink Sheets:
GAFC.PK)  ("GAFC" or "Greater  Atlantic")  today announced that its stockholders
approved the proposed merger with MidAtlantic Bancorp,  Inc.  ("MidAtlantic") at
Greater Atlantic's special meeting of stockholders held on August 26, 2009.

Under the terms of the merger agreement,  each holder of Greater Atlantic common
stock will receive  $0.10 in cash for each share held.  In  connection  with the
transaction,  Greater  Atlantic  also  will  initiate  a  tender  offer  for the
outstanding  trust  preferred  securities  issued  by  its  subsidiary,  Greater
Atlantic  Capital Trust I ("GACT"),  for aggregate  consideration  not to exceed
$688,558.  The directors of GAFC and certain other trust preferred  holders have
previously agreed to sell 311,587 shares of their trust preferred  securities to
Greater  Atlantic  for $0.01 per share.  The amount that would have been paid to
these  directors  and certain other  holders of the trust  preferred  securities
above the $0.01 per share will be allocated  to the  remaining  trust  preferred
holders to provide them with a greater return.

Consummation  of the  merger is  subject  to  receipt  of  necessary  regulatory
approvals and satisfaction of certain customary  representations  and warranties
and conditions.  The acquisition is also  conditioned  upon  satisfaction of the
following  matters prior to the close of the  transaction:  (a) the tender of at
least  816,627  shares  (out of 960,738  shares  outstanding)  of the GACT trust
preferred  securities,  inclusive of the 311,587 shares mentioned above, and (b)
the  elimination  or  modification  to the  satisfaction  of  MidAtlantic of the
operating  constraints  that currently apply to Greater  Atlantic Bank,  Greater
Atlantic's wholly-owned subsidiary,  under orders issued by the Office of Thrift
Supervision, the primary federal regulator of Greater Atlantic Bank.

The  transaction  is expected to be completed by the end of the third quarter of
2009, subject to regulatory approval and the successful completion of the tender
offer referred to above.

Forward Looking Statements

This news release contains certain forward-looking statements about the proposed
merger of MidAtlantic and Greater  Atlantic.  Forward-looking  statements can be
identified by the fact that they do not relate strictly to historical or current
facts.  They  often  include  words  like  "believe,"  "expect,"   "anticipate,"
"estimate,"  and  "intend"  or  future  or  conditional  verbs  such as  "will,"
"should,"  "could," or "may." Certain factors that could cause actual results to
differ materially from expected results include delays in completing the merger,
difficulties in achieving cost savings from the merger or in achieving such cost
savings  within  the  expected  time  frame,  difficulties  in  integrating  the
operations of MidAtlantic and Greater Atlantic, increased competitive pressures,
changes  in  the  interest  rate   environment,   changes  in  general  economic

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conditions,  legislative  and  regulatory  changes  that  adversely  affect  the
business in which  MidAtlantic and Greater Atlantic are engaged,  changes in the
securities markets and other risks and uncertainties disclosed from time to time
in documents that Greater  Atlantic files with the U.S.  Securities and Exchange
Commission.

Tender Offer Statement

This press  release is neither an offer to  purchase  nor a  solicitation  of an
offer to sell trust  preferred  securities of GACT. The tender offer has not yet
commenced.  At the time the  offer is  commenced,  Greater  Atlantic  will  file
definitive tender offer materials with the SEC,  including final versions of the
Offer to  Purchase,  a related  Letter of  Transmittal  and certain  other offer
documents.  We urge holders of GACT's  trust  preferred  securities  to read the
final  tender  offer  materials  when they become  available  because  they will
contain important information which should be read carefully before any decision
is made with respect to the tender  offer.  The Offer to  Purchase,  the related
Letter of Transmittal  and certain other offer  documents will be made available
to all holders of GACT trust  preferred  securities  at no expense to them.  The
tender  offer  materials  will be  available  for free at the SEC's  website  at
http://www.sec.gov. In addition, holders of GACT trust preferred securities will
be able to obtain a free copy of these documents from the information  agent for
the tender offer, who will be identified in the tender offer documents.


For further information contact:

Carroll E. Amos
President and Chief Executive Officer
Greater Atlantic Financial Corp.
10700 Parkridge Boulevard, Suite P-50
Reston, Virginia 20191