[Letterhead of Astoria Financial Corporation]

                                            Contact:      Peter J. Cunningham
                                                          Vice President
                                                          Investor Relations
                                                          (516) 327-7877

FOR IMMEDIATE RELEASE

               ASTORIA FINANCIAL CORPORATION COMPLETES ACQUISITION
                      OF THE GREATER NEW YORK SAVINGS BANK

    Creates $10 Billion Financial Institution With Sixty-One Banking Offices

        Lake Success, New York, October 1, 1997 - Astoria Financial Corporation
(Nasdaq: AFSC) ("Astoria") announced today the successful completion of the
acquisition of The Greater New York Savings Bank (Nasdaq: GRTR) ("The Greater")
and its merger into Astoria Federal Savings and Loan Association, Astoria's
wholly owned thrift subsidiary. According to the terms of the merger agreement,
the aggregate consideration payable to stockholders of The Greater common stock
consists of 0.5 of a share of Astoria Financial Corporation common stock per
share of The Greater common stock for 75% of the shares of The Greater common
stock and $19.00 in cash per share of The Greater common stock for the remaining
25% of the shares of The Greater common stock. Accordingly, each share of The
Greater common stock has been converted in the merger into the right to receive:
(i) 0.5 of a share of Astoria common stock, (ii) $19.00 in cash or (iii) a
combination of cash and a fraction of a share of Astoria common stock. The
actual consideration ultimately received by a stockholder for shares of The
Greater common stock will depend on certain election, allocation and proration
procedures. The transaction will be accounted for as a purchase and will be
immediately accretive to reported and cash earnings.

               The outstanding shares of the 12% Noncumulative Preferred Stock,
Series B, of The Greater has been converted into a newly-created series of
preferred stock of Astoria Financial Corporation with substantially identical,
and no less favorable terms.

               George L. Engelke, Jr., Chairman, President and Chief Executive
Officer of both Astoria Financial Corporation and Astoria Federal said, "We are
excited about the completion of this significant in-market acquisition. The
Greater's 14 banking office franchise, with deposits averaging $117 million per
office, represents an important complementary fit for Astoria. In addition to
immediately increasing our existing presence in Queens, Nassau and Suffolk
counties, we are making a solid entry into the Brooklyn market with nine
existing offices of The









Greater plus two new banking offices to be opened in the Midwood and Bensonhurst
sections of Brooklyn during the week of October 6."

               Mr. Engelke continued, "We are very pleased to welcome the former
customers and shareholders of The Greater to the Astoria family. We are
confident that this transaction will enhance shareholder value and provide
long-term benefits for our customers and the communities we serve. We also
welcome Gerard C. Keegan, former Chairman, President and Chief Executive Officer
of The Greater, as a director of both Astoria Financial Corporation and Astoria
Federal Savings and Loan Association and as Vice chairman and Chief
Administrative Officer. In addition, we welcome Peter C. Haeffner, Jr., a former
director of The Greater, as a director of both Astoria Financial Corporation and
Astoria Federal Savings and Loan Association."

               As a result of the acquisition and the two new banking offices,
Astoria will have a market capitalization of over $1.25 billion, assets of
approximately $10.2 billion, deposits of approximately $6.2 billion and will
operate sixty-one banking offices; fifty-six in the New York metropolitan area
and five in the upstate counties of Ostego and Chenango. The combined
institution will provide retail banking, mortgage and consumer loan services to
over 375,000 customers.

               NOTE: BY OCTOBER 3, 1997, ASTORIA WILL MAIL TO HOLDERS OF THE
GREATER COMMON STOCK THE ELECTION MATERIALS. THE ELECTION PROCESS WILL EXPIRE ON
OCTOBER 17, 1997. IN CONNECTION WITH THE GREATER SHAREHOLDER ELECTION PROCEDURE,
CHASEMELLON SHAREHOLDER SERVICES, INC. HAS BEEN RETAINED AS INFORMATION AGENT
FOR THE ELECTION PROCESS. A TOLL-FREE TELEPHONE NUMBER, 1-888-213-0887, HAS BEEN
ESTABLISHED TO ASSIST THE SHAREHOLDERS WITH ANY QUESTIONS THEY MAY HAVE
CONCERNING THE ELECTION PROCESS AND FOR INFORMATION CONCERNING THEIR FINAL
ALLOCATION. RESULTS OF THE FINAL ALLOCATION WILL BE AVAILABLE TO SHAREHOLDERS
BEGINNING OCTOBER 27, 1997 BY CALLING THE TOLL-FREE NUMBER.

               ASTORIA FINANCIAL CORPORATION WILL ANNOUNCE ITS EARNINGS RESULTS
FOR THE QUARTER ENDED SEPTEMBER 30, 1997 ON OR ABOUT OCTOBER 23, 1997,
SUBSEQUENT TO THE FINAL ELECTION TABULATION BY THE EXCHANGE AGENT.