[LOGO] First Niagara
       Financial Group, Inc.

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

Lockport, N.Y. - March 22, 2006 - 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 5.6 million (5%) of its outstanding common stock,
as part of its ongoing capital management program. This authorization
supplements the current share buyback program announced in May 2005, under which
1.8 million shares remain available for repurchase.

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 as well as alternative uses for capital.

First Niagara Financial Group, Inc., through its wholly owned subsidiary First
Niagara Bank, has assets of $8.1 billion and deposits of $5.5 billion. First
Niagara Bank is a full-service, community-oriented bank that provides financial
services to individuals, families and businesses through 120 branches and
several financial services subsidiaries across New York State.

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