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                  [ASTORIA FINANCIAL CORPORATION LETTERHEAD]


                                                                    NEWS RELEASE






                                                  CONTACT: PETER J. CUNNINGHAM
                                                           FIRST VICE PRESIDENT
                                                           INVESTOR RELATIONS
                                                           516-327-7877

FOR IMMEDIATE RELEASE


                 ASTORIA FINANCIAL CORPORATION ANNOUNCES RESULTS
                         OF ANNUAL SHAREHOLDERS MEETING


LAKE SUCCESS, NEW YORK, MAY 16, 2001 - Astoria Financial Corporation (Nasdaq:
ASFC) announced that, at its annual meeting held today, its shareholders
overwhelmingly voted to re-elect John J. Conefry, Jr., Lawrence W. Peters and
Thomas V. Powderly as directors for three year terms expiring at the 2004 annual
meeting. In addition, its shareholders ratified the appointment of KPMG LLP as
its independent auditors for the fiscal year ending December 31, 2001. The
shareholders also adopted a shareholder proposal which recommends that the Board
take the steps necessary to implement certain amendments to the Company's
Certificate of Incorporation and Bylaws. The shareholder proposal received the
support of less than a majority of the Company's outstanding shares. The
proposal received more than a majority of the votes cast at the meeting, which
was required for approval of the proposal under Astoria's Certificate of
Incorporation and Bylaws.

      Commenting on the results of the meeting, Mr. George L. Engelke, Jr.,
Chairman, President and Chief Executive Officer of Astoria Financial, noted, "We
are extremely pleased with the overwhelming support we received from our
shareholders as demonstrated by the vote of more than 97% of the votes cast in
favor of the re-election of our nominees as directors." With respect to the
adoption of the shareholder proposal, Mr. Engelke commented, "As previously
disclosed in the proxy materials, the Company's Board of Directors believes that
the current provisions of our Certificate of Incorporation and Bylaws are in the
best interests of the Company and its shareholders and are necessary to promote
stability in the Company's corporate governance and to protect shareholders from
hostile takeover abuses. The provisions have been in place since we became a
public company in 1993. We always appreciate receiving the views of our
shareholders,
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whether formal or informal. The results of the voting demonstrate that, even
though the proposal received the requisite vote for adoption, it does not
represent the views of the holders of a majority of the total shares
outstanding as of the record date. The Board will take these results into
consideration as it evaluates the recommendations set forth in the proposal in
due course. Any amendments to the Company's Certificate of Incorporation and
Bylaws will require further presentation to the shareholders and will require
the affirmative vote of 80% of the outstanding shares of our common stock for
approval in accordance with our Certificate of Incorporation and Bylaws."

      Astoria Financial Corporation, the holding company for Astoria Federal
Savings and Loan Association, with assets of $22.6 billion, is the second
largest thrift institution in New York and sixth largest in the United States.
Astoria Federal, through its 86 banking offices, provides retail banking,
mortgage, consumer and small business loan services to 700,000 customers.
Astoria commands the fourth largest deposit market share in the attractive Long
Island market, which includes Brooklyn, Queens, Nassau and Suffolk counties
with a population exceeding that of 38 individual states. Astoria originates
mortgage loans through an extensive broker network and/or loan production
offices in fourteen states: New York, New Jersey, Connecticut, Pennsylvania,
Ohio, Illinois, Massachusetts, Delaware, Maryland, Virginia, North Carolina,
South Carolina, Georgia and Florida.

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