Exhibit 99.1

  FIRST NIAGARA FINANCIAL GROUP, INC. ANNOUNCES COMMON STOCK REPURCHASE PROGRAM

Lockport, N.Y. - August 31, 2004 - First Niagara Financial Group, Inc. (NASDAQ:
FNFG), today announced that it has been authorized by its Board of Directors to
repurchase up to an additional 4.2 million (5%) of its outstanding common stock,
as part of its ongoing capital management program. This decision was made to
supplement the current 2.1 million share repurchase program, which is expected
to be completed early in the fourth quarter of this year. To date, the Company
has repurchased a total of 1.6 million shares under this program. Due to
regulatory restrictions, the Company is restricted from repurchasing additional
stock until late October given the current solicitation of shareholder votes for
the Hudson River Bancorp, Inc. acquisition and the release of third quarter
earnings.

"This program will enable us to continue our multifaceted approach to capital
management," stated Paul J. Kolkmeyer, First Niagara's President and CEO. "We
utilize a combination of organic growth, dividends, share repurchases, de novo
branching and acquisitions to deploy our excess capital. Given our current
intentions not to pursue any whole-bank acquisitions through the end of 2005
while we fully integrate Hudson River, it is important that our capital
management initiatives include an on-going share buyback program. We believe our
approach is in the best interest of our shareholders and the creation of
long-term value."

Management will use its discretion in determining the timing of the repurchases
and the prices at which buybacks will be made. The extent to which shares are
repurchased will depend on a number of factors including market trends and
prices, economic conditions, internal and regulatory trading quiet periods and
alternative uses for capital.

First Niagara Financial Group, Inc., through its wholly owned subsidiary First
Niagara Bank, has assets of $5.0 billion and deposits of $3.3 billion. First
Niagara Bank is a full-service, community-oriented bank that provides financial
services to individuals, families and businesses through 71 banking centers, a
loan production office, several financial services subsidiaries, and 95 ATMs
across New York State. On April 2, 2004 the Company announced its intentions to
acquire Hudson River Bancorp, Inc., a $2.6 billion asset bank headquartered in
Hudson, New York.

Forward-Looking Statements - This press release contains forward-looking
statements with respect to the financial condition and results of operations of
First Niagara Financial Group, Inc. including, without limitations, statements
relating to the earnings outlook of the Company. These forward-looking
statements involve certain risks and uncertainties. Factors that may cause
actual results to differ materially from those contemplated by such
forward-looking statements, include among others, the following possibilities:
(1) changes in the interest rate environment; (2) competitive pressure among
financial services companies; (3) general economic conditions including an
increase in non-performing loans that could result from an economic downturn;
(4) changes in legislation or regulatory requirements; (5) difficulties in
continuing to improve operating efficiencies; (6) difficulties in the
integration of acquired businesses; and (7) increased risk associated with an
increase in commercial real-estate and business loans and non-performing loans.

Officer Contacts

Paul J. Kolkmeyer..........     President and CEO
John R. Koelmel............     Chief Financial Officer
Christopher J. Thome.......     Reporting and Investor Relations Manager
                                (716) 625-7645
                                chris.thome@fnfg.com
Leslie G. Garrity..........     Public Relations and Corporate Communications
                                Manager
                                (716) 625-7528
                                leslie.garrity@fnfg.com