FOR IMMEDIATE RELEASE
July 6, 2005

For further information contact:
Craig Montanaro
Senior Vice President
Kearny Financial Corp.
(973) 244-4510

                             KEARNY FINANCIAL CORP.
                             ANNOUNCES CASH DIVIDEND

Fairfield,  New Jersey, July 6, 2005 - Kearny Financial Corp. (Nasdaq NMS: KRNY)
(the "Company")  previously  announced that the Company's Board of Directors has
declared its first  quarterly cash dividend of $.04 per share to stockholders of
record as of July 18,  2005.  The payment  date for the  dividend is on or about
July 25, 2005. The majority of the outstanding  stock of the Company is owned by
Kearny MHC, a mutual holding company. This is the Company's first dividend since
completing its initial public stock offering in February 2005.

President and CEO John N. Hopkins indicated that the cash dividend is being paid
to  provide  a  return  to  stockholders,   after  considering  the  equity  and
profitability  of the  Company.  It is the  current  intention  of the  Board of
Directors to continue to pay such a dividend quarterly.  However, the payment of
future dividends will be subject to the Board's periodic review of the financial
condition, earnings, and capital requirements of the Company.

Kearny  Financial  Corp. is the holding company for Kearny Federal Savings Bank,
which operates from its administrative  headquarters building in Fairfield,  New
Jersey,  and  twenty-five  branch offices  located in Bergen,  Hudson,  Passaic,
Morris,  Middlesex,  Essex,  Union and Ocean Counties,  New Jersey. At March 31,
2005, Kearny Financial Corp. had total assets, deposits and stockholders' equity
of $2.05  billion,  $1.45 billion and $501.5  million,  respectively.  Shares of
Kearny  Financial  Corp.  trade on the Nasdaq  National  Market under the symbol
"KRNY."

Statements  contained in this news release,  which are not historical facts, are
forward-looking  statements  as that term is defined in the  Private  Securities
Litigation  Reform Act of 1995. Such  forward-looking  statements are subject to
risks and  uncertainties  which could cause actual results to differ  materially
from those currently anticipated due to a number of factors,  which include, but
are not limited to,  factors  discussed in documents  filed by Kearny  Financial
Corp. with the Securities and Exchange Commission from time to time. The Company
does not undertake to update any forward-looking  statement,  whether written or
oral, that may be made from time to time by or on behalf of the Company.