[ASTORIA FINANCIAL LOGO]


FOR IMMEDIATE RELEASE

                              CONTACT:  PETER J. CUNNINGHAM
                                        FIRST VICE PRESIDENT, INVESTOR RELATIONS
                                        (516) 327-7877
                                        IR@ASTORIAFEDERAL.COM

            ASTORIA FINANCIAL CORPORATION ANNOUNCES REDEMPTION OF ITS
              12% NONCUMULATIVE PERPETUAL PREFERRED STOCK, SERIES B

      LAKE SUCCESS, NEW YORK - AUGUST 29, 2003 - Astoria Financial Corporation
(NYSE: AF) ("Astoria"), the holding company for Astoria Federal Savings and Loan
Association, has called for redemption and will redeem on October 1, 2003 (the
"Redemption Date") all of its 2,000,000 outstanding shares of 12% Noncumulative
Perpetual Preferred Stock, Series B (the "Preferred Shares"), at a redemption
price of $27.25 per share, plus $1.00 in accrued and unpaid dividends to but
excluding the Redemption Date, for an aggregate redemption price of $28.25 per
Preferred Share (the "Redemption Price"). Astoria today mailed a Notice of
Redemption and the related Letter of Transmittal to each of the registered
holders of its Preferred Shares. Dividends on the Preferred Shares will cease to
accrue on October 1, 2003.

      Following the Redemption Date, the Preferred Shares will no longer be
deemed to be outstanding and the holders of the Preferred Shares will have no
rights other than the right to receive the Redemption Price, without interest,
upon surrender of the certificates representing the Preferred Shares in
accordance with the Notice of Redemption and the Letter of Transmittal. Payment
of the Redemption Price will be made on or after October 1, 2003 only upon
presentation and surrender of certificates representing the Preferred Shares to
Mellon Investor Services LLC, the redemption agent, during its usual business
hours at one of the addresses specified in the Letter of Transmittal.

      For additional information about the redemption, holders of the Preferred
Shares should contact Mellon Investor Services LLC, the redemption agent, at
1-800-777-3674.

      Astoria Financial Corporation, the holding company for Astoria Federal
Savings and Loan Association, with assets of $22.3 billion, is the second
largest thrift institution headquartered in New York and fifth largest in the
United States. Astoria Federal embraces its philosophy of "Putting people first"
by providing its 700,000 customers and the local communities it serves with
quality financial products and services through 86 convenient branches and
multiple delivery channels, including its enhanced website,
www.astoriafederal.com. Astoria commands the third 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 its branches and loan production
offices in New York, an extensive broker network in 19 states, primarily on the
East Coast, and through correspondent relationships in 44 states.