FOR IMMEDIATE RELEASE
July 18, 2006

For further information contact:
Craig L. Montanaro
Senior Vice President,
Director of Strategic Planning
Kearny Financial Corp.
(973) 244-4510


                             KEARNY FINANCIAL CORP.
                         ANNOUNCES STOCK REPURCHASE PLAN

Fairfield, New Jersey, July 18, 2006 - Kearny Financial Corp. (Nasdaq GSM: KRNY)
(the  "Company"),  the  holding  company  of Kearny  Federal  Savings  Bank (the
"Bank"),  today  announced  that the Board of Directors  has  authorized a stock
repurchase  plan to  acquire  up to  1,091,063  shares,  or 5% of the  Company's
outstanding  common  stock held by persons  other than  Kearny  MHC.  This stock
repurchase  plan will  commence  after the Company has completed its purchase of
shares in the open  market to fund the  Company's  2005 Stock  Compensation  and
Incentive  Plan.  1,371,341  shares have been  repurchased to date for the Stock
Compensation and Incentive Plan and an additional 54,314 shares are needed.

Repurchases  under the stock  repurchase  plan will be made from time to time in
the open market, based on stock availability,  price and the Company's financial
performance. It is anticipated that the repurchases will be made during the next
twelve  months,  although no assurance can be given as to when they will be made
or to the  total  number of shares  that  will be  repurchased,  and there is no
expiration date for the plan. The Company may enter into one or more Rule 10b5-1
trading plans in order to facilitate the repurchase of shares.

John N. Hopkins,  President and Chief Executive Officer of the Company,  stated,
"The stock repurchase plan demonstrates our commitment to enhancing  shareholder
value through sound capital management strategies."


Kearny  Financial  Corp. is the holding company for Kearny Federal Savings Bank,
which operates from its administrative  headquarters building in Fairfield,  New
Jersey, and 26 retail branch offices located in Bergen, Hudson, Passaic, Morris,
Middlesex,  Essex,  Union and Ocean  Counties,  New Jersey.  At March 31,  2006,
Kearny Financial Corp. had total assets,  deposits and  stockholders'  equity of
$2.03 billion, $1.46 billion and $503.0 million, respectively.  Shares of Kearny
Financial  Corp.  trade on the  Nasdaq  Global  Select  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.