Microsoft Word 10.0.2627;2

                            LAWRENCE B. SEIDMAN, ESQ.
                                 100 Misty Lane
                                 P. O. BOX 5430
                              Parsippany, NJ 07054
                              (973) 560-1400, X108
                                 August 18, 2004


                  Re: Clifton  Savings Bancorp, Inc.

Dear  Mr. Kumar:

Enclosed  please find the  following  in response to our phone  conversation  of
August 17, 2004 concerning Clifton Savings Bancorp, Inc. ("CSBK")
Schedule 1

The following  shows the  percentage of the options and MRP shares issued by all
the mutual holding companies that have gone public since October 17, 2001 to the
present.

As you will note, CSBK, Inc. is seeking  shareholder  approval for its incentive
plan sooner than three other  financial  institutions  that went public prior to
CSBK. In addition, the chart clearly demonstrates that the percentage of options
and MRPs being  requested  by CSBK is vastly  greater  than any  mutual  holding
company has ever requested. As shown on the bottom of Page 2, CSBK is requesting
approximately  71% in options  (17.85% - 10.41%)  and 58% (7.14%  -4.51%) in MRP
shares more than any other mutual holding company has ever requested.

Schedule 2

Column A  provides  the  total  cost of the MRPs.  Pursuant  to Office of Thrift
Supervision  regulation,  the MRPs vest over a 5-year period. Column B is just A
divided by 5. I compared the total cost of the MRPs (Column A) to the  Company's
net  worth  (Column  D)  which  gave me the 0/0 in  Column  E.  In  addition,  I
calculated the yearly costs of the MRPs against each Company's  twelve month net
income and created a % of the yearly cost to net income (Column C).

The yearly  cost of the MRPs for CSBK is  approximately  four and one half times
greater than any of the other mutual holding companies (58.77 / 13.32, bottom of
Page 2). The total cost of the CSBK's MRPs to the respective company's net

August 18, 2004
Page 2

worth is two and one half times greater  (5.81% / 2.28%,  bottom of Page 2) than
any other mutual holding company.

Schedule 3
Clifton Savings Bancorp:  Fully Converted  Worksheet,  Mutual Holding Companies,
prepared by Ryan Beck & Co., April 2004

As the worksheet  clearly  shows,  if CSBK did a second step and sold the shares
owned by the mutual holding company,  it would raise anywhere from  $170,000,000
to  $225,000,000.  Until this  occurs use of the MHC shares in  calculating  the
propriety  of any  dilution is flawed  because the capital  that relates to this
ownership has yet to be raised.  The use of these MHC shares is akin to counting
treasury stock in the total outstanding shares of a company.

Schedule 4

Schedule 4 clearly shows that CSBK,  based upon the last twelve months  earnings
per share and 2nd  Quarter  annualized  earnings  per  share,  is trading at the
second worst P/E ratio of all publically traded mutual holding companies.

Schedule 5

I have also  enclosed  a copy of the August 13,  2004,  Savings  and Loan Bank &
Thrift Daily concerning  Abington Community Bancorp Inc.'s reduction of its MRPs
to 2%.

If you have any questions, please contact Richard Grubaugh or me.

                                                     Very truly yours,



                                                     LAWRENCE B. SEIDMAN
Enc.