First Niagara Financial Group, Inc. Declares Quarterly Dividend

Business Wire, July 18, 2001

    Business Editors

      LOCKPORT, N.Y.--(BUSINESS WIRE)--July 18, 2001--First Niagara
Financial Group, Inc. (NASDAQ:FNFG) announced today that its Board of
Directors has declared a quarterly dividend of nine cents ($0.09) per
share on outstanding FNFG common stock.
      The dividend is payable on August 14, 2001 to stockholders of
record on July 31, 2001.
      First Niagara Financial Group, Inc. is a $2.7 billion multi-bank
holding company and is the parent of First Niagara Bank, Cortland
Savings Bank and Cayuga Bank.

      Press releases are being distributed by Business Wire and can be
found on the Internet, as well as appropriate trade media and
financial disclosure circuits. News, analyst presentations and other
information about the Corporation are available on the Internet at the
Corporation's website, http://www.firstniagarafinancial.com. For
additional information about First Niagara Financial Group, Inc.
please contact:

-0-
*T
Corporate Information

First Niagara Financial Group, Inc.
6950 South Transit Road
P.O. Box 514
Lockport, New York  14095-0514
Telephone (800) 201-6621
Website: http://www.firstniagarafinancial.com

Transfer Agent and Registrar
Mellon Investor Services, LLC
P.O. Box 3315
South Hackensack, NJ  07606
Telephone (877) 785-9670
Website:  http://www.mellon-investor.com
-0-

    --30--nf/ny*   csm

    CONTACT: Investor Relations:
             Christopher J. Thome, 716/625-7645
             Assistant Vice President
             Reporting and Investor Relations Manager
             chris.thome@firstniagarabank.com
                    or
             Media Relations:
             Leslie G. Garrity, 716/625-7528
             Assistant Vice President
             Public Relations and Corporate Communications Manager
             leslie.garrity@firstniagarabank.com

    KEYWORD: NEW YORK
    INDUSTRY KEYWORD: BANKING DIVIDEND