Former Bank of America/Fleet Bank Executive moves to First Niagara

Enhanced Regional Management Structure Strengthens Company's Local Focus

LOCKPORT, N.Y. -- First Niagara Financial Group, Inc., (Nasdaq: FNFG - News; the "Company") the parent of First Niagara Bank, has strengthened its local market focus by naming regional presidents to coordinate initiatives to expand its retail, business banking, insurance and wealth management activity within each of the company's regions across New York State.

"Over the last seven years, we have used a series of bank and financial service acquisitions, as well as a denovo branch expansion program, to create a statewide franchise," said First Niagara President and CEO Paul J. Kolkmeyer. "In addition to the scale and reach that we have built, we are moving First Niagara to a customer-centric business model that is even more focused on understanding the financial needs of our customers and providing relationship-based solutions. Having a regional president as the senior executive and principal representative of First Niagara in each of our regions allows us to better serve our customers and communities as we attract new business and deepen existing customer relationships."

The enhanced management structure will help First Niagara ensure the successful implementation of the company's Blueprint for the Future, a major strategic initiative to better position the company for improved overall performance. With Strategic Blueprint, First Niagara has created a framework that has focused all employees on creating a business environment that puts customers in the forefront. We ultimately want customers to come to know us as their trusted financial advisor, Kolkmeyer said.

"We're looking to our presidents to lead the execution of our vision and strategy. They'll help us develop new business opportunities and recommend sales and service strategies to ensure effective coordination of the delivery of our products and services," he said.

Community relations will also be a key leadership area for each of the regional presidents as representatives of First Niagara in their respective regions.

"They will build and strengthen relationships with local government leaders, not-for-profit organizations and the business community," he said.

Greg Gilroy has been named Regional President for First Niagara's seven county Central New York area which stretches from Utica to the Finger Lakes. This region includes retail locations in markets such as Cortland, Auburn, Ithaca , Utica and Syracuse which are a key growth focus for the company. Gilroy held a similar position with Bank of America/Fleet Bank before joining First Niagara.

Patrick Burke has been named Rochester Regional President. In addition to eight Rochester area branch locations, a loan production office and the significant insurance presence First Niagara has in this market today, the company has committed to an aggressive new build strategy in this area with plans to add at least seven branches within the next 15 months.

Burke is CEO of the Burke Group, Inc., an employee benefits administration and compensation consulting firm recently acquired by First Niagara.

Daniel E. Cantara has been named Western New York Regional President. As an increasingly strong competitor around Buffalo with 24 branches in Erie and its surrounding counties, First Niagara has used an active de novo branching strategy to expand its service area in this region and to fill coverage gaps. Cantara, who been with First Niagara since 2001, oversees the company's business lending, leasing, insurance and employee benefits businesses.

At the close of its acquisition of Hudson River Bancorp in January 2005, First Niagara named Carl A. Florio, former president and CEO of Hudson River Bancorp, as its Eastern regional president. Carl previously served as the President & CEO of Hudson River Bank & Trust Co.

First Niagara Financial Group, Inc., through its wholly owned subsidiary First Niagara Bank, has assets of $8 billion and deposits of $5.2 billion. First Niagara Bank is a full-service, community-oriented bank that provides financial services to individuals, families and businesses through 117 branches and several financial services subsidiaries across New York State.

Special Note: Photos of Florio, Gilroy, Burke and Cantara are available in JPEG format via email. To request a photo, please email leslie.garrity@fnfg.com. Please specify deadline.

Forward-Looking Statements -- This press release may contain 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.

What are people saying about mortgages today:

Rates on 30-year mortgages edged down last week to a seven-month low. Mortgage-giant Freddie Mac reported Thursday that 30-year, fixed-rate mortgages fell to 6.3 percent, down slightly from 6.31 percent two weeks ago. It put rates at the lowest level since they were at 6.24 percent the first week of March.

Bank of Hawaii, Central Pacific Bank, Territorial Savings Bank and Wells Fargo Home Mortgages all cut their 30-year mortgage rates to 5.75 percent this week.

Most people think of a mortgage as a means to an end. After all, you buy a house, not a home loan. But a mortgage is much more than the path to homeownership. It is a financial instrument that must be managed, just like any other financial investment.