Exhibit 99.1

  ASTORIA FINANCIAL CORPORATION AWARDED $436 MILLION FROM U.S. COURT OF FEDERAL
                          CLAIMS FOR BREACH OF CONTRACT

    LAKE SUCCESS, N.Y., Sept. 15 -- Astoria Financial Corporation (NYSE: AF)
("the Company") announced today that United States Court of Federal Claims Judge
Charles F. Lettow has rendered a decision, after trial, in the case entitled The
Long Island Savings Bank, FSB, et al. vs. The United States, Docket No.
92-517-C, awarding Astoria $435,755,000 in damages from the U.S. government for
breach of contract, in connection with a 1983 Assistance Agreement ("the
Agreement") between the Long Island Savings Bank ("LISB") and the Federal
Savings and Loan Insurance Corporation ("FSLIC") pursuant to which LISB acquired
a failing thrift. LISB was subsequently acquired by Astoria Financial
Corporation in 1998. Management has indicated that it will carefully review the
decision and anticipates that the U.S. government, given its previous practice
in similar cases, will file an appeal. If so, no assurance can be given as to
the timing, content or the ultimate outcome of the appeal.

    Astoria Financial Corporation, the holding company for Astoria Federal
Savings and Loan Association, with assets of $22.8 billion is the sixth largest
thrift institution in the United States. Established in 1888, Astoria Federal is
the largest thrift depository headquartered in New York with deposits of $12.6
billion and embraces its philosophy of Putting people first by providing the
customers and local communities it serves with quality financial products and
services through 86 convenient banking office locations and multiple delivery
channels, including its enhanced website, http://www.astoriafederal.com. Astoria
Federal 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 39 individual states. Astoria Federal originates
mortgage loans through its banking offices and loan production offices in New
York, an extensive broker network in twenty-three states, primarily the East
Coast and the District of Columbia, and through correspondent relationships in
forty-four states and the District of Columbia.

    Forward Looking Statements

    This document contains a number of forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933, as amended, and Section
21E of the Securities Exchange Act of 1934, as amended. These statements may be
identified by the use of such words as "anticipate," "believe," "could,"
"estimate," "expect," "intend," "outlook," "plan," "potential," "predict,"
"project," "should," "will," "would" and similar terms and phrases, including
references to assumptions.

    Forward-looking statements are based on various assumptions and analyses
made by us in light of our management's experience and its perception of
historical trends, current conditions and expected future developments, as well
as other factors we believe are appropriate under the circumstances. These
statements are not guarantees of future performance and are subject to risks,
uncertainties and other factors (many of which are beyond our control) that
could cause actual results to differ materially from future results expressed or
implied by such forward-looking statements. These factors include, without
limitation, the following: the timing and occurrence or non- occurrence of
events may be subject to circumstances beyond our control; there may be
increases in competitive pressure among financial institutions or from
non-financial institutions; changes in the interest rate environment may reduce
interest margins or affect the value of our investments; changes in deposit
flows, loan demand or real estate values may adversely affect our business;
changes in accounting principles, policies or guidelines may cause our financial
condition to be perceived differently; general economic conditions, either
nationally or locally in some or all of the areas in which we do business, or
conditions in the securities markets or the banking industry may be less
favorable than we currently anticipate; legislative or regulatory changes may
adversely affect our business; applicable technological changes may be more
difficult or expensive than we anticipate; success or consummation of new
business initiatives may be more difficult or expensive than we anticipate; or
litigation or matters before regulatory agencies, whether currently existing or
commencing in the future, may delay the occurrence or non-occurrence of events
longer than we anticipate. We assume no obligation to update any forward-looking
statements to reflect events or circumstances after the date of this document.