PennFed Financial Services, Inc. Shareholders Approve Acquisition by New York Community Bancorp, Inc.

  
    
  
  
    
      The acquisition of PennFed Financial Services, Inc. (NASDAQ/Global 
      Market: PFSB) (“PennFed”) 
      by New York Community Bancorp, Inc. (NYSE: NYB) was approved today at a 
      special meeting of PennFed’s shareholders, 
      paving the way for the acquisition to take effect on or about March 
      31st. Upon completion, PennFed will merge with and into New York 
      Community Bancorp and Penn Federal Savings Bank, the primary subsidiary 
      of PennFed, will merge with and into New York Community Bancorp’s 
      savings bank subsidiary, New York Community Bank.
    
    
      The acquisition was previously approved by the Superintendent of the New 
      York State Banking Department, and the merger of Penn Federal Savings 
      Bank with and into New York Community Bank was previously approved by 
      the FDIC.
    
    
      Under the terms of the Agreement and Plan of Merger, PennFed 
      shareholders will receive 1.222 shares of New York Community Bancorp 
      stock for each share of PennFed stock held at the effective date of the 
      merger, and cash in lieu of any fractional share. Following the merger, 
      New York Community Bancorp will have approximately 314 million 
      outstanding shares of common stock.
    
    
      Commenting on the receipt of shareholder approval, New York Community 
      Bancorp Chairman, President, and Chief Executive Officer Joseph R. 
      Ficalora stated, “We are grateful for the 
      significant level of support the transaction received today from PennFed’s 
      shareholders, and look forward to serving them as shareholders of our 
      company. With the addition of PennFed’s 24 
      branches, we will have 187 locations spanning the New York metropolitan 
      region--including 32 in New Jersey--and the opportunity to increase our 
      revenues while serving our growing customer base.”
    
    
      Joseph L. LaMonica, President and Chief Executive Officer of PennFed 
      stated, “All the support received from our 
      shareholders since our initial public offering in July 1994 has been 
      very much appreciated. We believe this merger maximizes shareholder 
      value and goes further to provide benefits to our customers. Partnering 
      with New York Community Bancorp, a company that shares our 
      community-oriented focus, allows our customers access to an expanded 
      line of products and services.”
    
    
      New York Community Bancorp, Inc.
    
    
      New York Community Bancorp, Inc. is the $28.5 billion holding company 
      for New York Community Bank and New York Commercial Bank, and the 
      leading producer of multi-family loans for portfolio in New York City. A 
      New York State-chartered savings bank with 137 offices serving New York 
      City, Long Island, Westchester County, and northern New Jersey, New York 
      Community Bank is the third largest thrift depository in the New York 
      metropolitan region, and operates through seven local divisions: Queens 
      County Savings Bank, Roslyn Savings Bank, Richmond County Savings Bank, 
      Roosevelt Savings Bank, CFS Bank, First Savings Bank of New Jersey, and 
      Ironbound Bank. A New York State-chartered commercial bank, New York 
      Commercial Bank has 27 branches serving Manhattan, Queens, Brooklyn, 
      Westchester County, and Long Island. Additional information about New 
      York Community Bancorp, Inc. and its bank subsidiaries is available at www.myNYCB.com.
    
    
      PennFed Financial Services, Inc.
    
    
      PennFed Financial Services, Inc. is the $2.3 billion holding company for 
      Penn Federal Savings Bank, a New Jersey-based thrift with loans of $1.7 
      billion and deposits of $1.5 billion at December 31, 2006. The Company 
      has 13 branches serving the Ironbound section of Newark and the 
      surrounding communities of Essex County, and 11 branches serving 
      customers in select communities in Ocean, Monmouth, Middlesex, Hudson, 
      and Union Counties. Additional information about PennFed, its products, 
      and performance is available at www.pennfsb.com.
    
    
      Safe Harbor Provisions of the Private 
      Securities Litigation Reform Act of 1995
    
    
      This release, like other written and oral communications presented by 
      New York Community Bancorp, Inc. and PennFed Financial Services, Inc. 
      (the “Companies”) 
      and their authorized officers, may contain certain 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. The Companies intend such forward-looking 
      statements to be covered by the safe harbor provisions for 
      forward-looking statements contained in the Private Securities 
      Litigation Reform Act of 1995, and are including this statement for 
      purposes of said safe harbor provisions.
    
    
      Forward-looking statements, which are based on certain assumptions, 
      may be identified by their reference to future periods and include, 
      without limitation, those statements relating to the anticipated effects 
      of the transaction between the Companies. The following factors, 
      among others, could cause the actual results of the transaction and the 
      expected benefits of the transaction to the combined company and to the 
      Companies’ shareholders, to differ materially 
      from the expectations stated in this release: the ability of the 
      Companies to consummate the transaction; a material adverse change in 
      the financial condition or results of operations of either company; the 
      ability of New York Community Bancorp, Inc. to successfully integrate 
      the assets, liabilities, customers, systems, and any management 
      personnel it may acquire into its operations pursuant to the 
      transaction; and the ability to realize the related revenue synergies 
      and cost savings within the expected time frames.
    
    
      In addition, factors that could cause the actual results of the 
      transaction to differ materially from current expectations include, but 
      are not limited to, general economic conditions and trends, either 
      nationally or locally in some or all of the areas in which the Companies 
      and their customers conduct their respective businesses; conditions in 
      the securities markets or the banking industry; changes in interest 
      rates, which may affect the Companies’ net 
      income, the level of prepayment penalties and other future cash flows, 
      or the market value of their assets; changes in deposit flows, and in 
      the demand for deposit, loan, and investment products and other 
      financial services in the Companies’ local 
      markets; changes in the financial or operating performance of the 
      Companies’ customers’ 
      businesses; changes in real estate values, which could impact the 
      quality of the assets securing the Companies’ 
      loans; changes in the quality or composition of the Companies’ 
      loan or investment portfolios; changes in competitive pressures among 
      financial institutions or from non-financial institutions; changes in 
      the customer base of either company; potential exposure to unknown or 
      contingent liabilities of companies targeted by New York Community 
      Bancorp, Inc. for acquisition; the Companies’ 
      timely development of new lines of business and competitive products or 
      services in a changing environment, and the acceptance of such products 
      or services by the Companies’ customers; any 
      interruption or breach of security resulting in failures or disruptions 
      in customer account management, general ledger, deposit, loan, or other 
      systems; the outcome of pending or threatened litigation or of other 
      matters before regulatory agencies, or of matters resulting from 
      regulatory exams, whether currently existing or commencing in the 
      future; environmental conditions that exist or may exist on properties 
      owned by, leased by, or mortgaged to the Companies; changes in estimates 
      of future reserve requirements based upon the periodic review thereof 
      under relevant regulatory and accounting requirements; changes in 
      banking, securities, tax, environmental, and insurance law, regulations, 
      and policies, and the ability to comply with such changes in a timely 
      manner; changes in accounting principles, policies, practices, or 
      guidelines; changes in legislation and regulation; operational issues 
      stemming from and/or capital spending necessitated by the potential need 
      to adapt to industry changes in information technology systems, on which 
      the Companies are highly dependent; changes in the monetary and fiscal 
      policies of the U.S. Government, including policies of the U.S. Treasury 
      and the Federal Reserve Board; war or terrorist activities; and other 
      economic, competitive, governmental, regulatory, and geopolitical 
      factors affecting the Companies’ operations, 
      pricing, and services. Additionally, the timing and occurrence or 
      non-occurrence of events may be subject to circumstances beyond the 
      Companies’ control.
    
    
      Readers are cautioned not to place undue reliance on these 
      forward-looking statements, which speak only as of the date of this 
      release. Except as required by applicable law or regulation, the 
      Companies disclaim any obligation to update any forward-looking 
      statements.