Vincent F. Palagiano, Chairman of the Board and Chief Executive Officer ofthe Company and Bank, stated, "While we understand that the extraordinarymeasures undertaken by U.S. Department of Treasury are intended to helpensure the long-term stability of the banking system, we ultimatelyconcluded that the election not to participate in the CPP best serves theinterests of our community and shareholders. We have consistently appliedprudent underwriting standards to the loans in our mortgage portfolio,which consists primarily of rent-regulated multi-family residentialdwellings located in New York City. We believe that these assets haveenough inherent stability to ensure that the Bank will continue to bewell capitalized. Based upon our strong balance sheet, well-capitalizedposition and solid credit quality, we determined that the CPP provided nomaterial benefit to our shareholders or other constituents."

As of September 30, 2008, the Bank was well capitalized by all regulatorymeasures, with a Tier 1 tangible capital ratio of 7.87% and a totalrisk-based capital ratio of 11.43%. In addition, neither the Company norBank has ever invested in real estate loans or collateral underlyingmortgage-backed securities that would be considered subprime loans, (i.e.,mortgage loans advanced to borrowers who do not qualify for market interestrates because of problems with their income or credit history). Allmortgage-backed securities owned by the Company or Bank as of September 30,2008 possessed the highest possible investment credit rating.

ABOUT DIME COMMUNITY BANCSHARES

The Company (NASDAQ: DCOM) had $3.83 billion in consolidated assets as ofSeptember 30, 2008, and is the parent company of the Bank. The Bank wasfounded in 1864, is headquartered in Brooklyn, New York, and currently hastwenty-three branches located throughout Brooklyn, Queens, the Bronx andNassau County, New York. More information on the Company and Bank can befound on the Bank's Internet website at www.dime.com.

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

Forward-looking statements are based upon various assumptions and analysesmade by the Company in light of management's experience and its perceptionof historical trends, current conditions and expected future developments,as well as other factors it believes are appropriate under thecircumstances. These statements are not guarantees of future performanceand are subject to risks, uncertainties and other factors (many of whichare beyond the Company's control) that could cause actual results to differmaterially from future results expressed or implied by such forward-lookingstatements. These factors include, without limitation, the following: thetiming and occurrence or non-occurrence of events may be subject tocircumstances beyond the Company's control; there may be increases incompetitive pressure among financial institutions or from non-financialinstitutions; changes in the interest rate environment may reduce interestmargins; changes in deposit flows, loan demand or real estate values mayadversely affect the business of the Bank; changes in accountingprinciples, policies or guidelines may cause the Company's financialcondition to be perceived differently; changes in corporate and/orindividual income tax laws may adversely affect the Company's financialcondition or results of operations; general economic conditions, eithernationally or locally in some or all areas in which the Company conductsbusiness, or conditions in the securities markets or the banking industrymay be less favorable than the Company currently anticipates; legislationor regulatory changes may adversely affect the Company's business;technological changes may be more difficult or expensive than the Companyanticipates; success or consummation of new business initiatives may bemore difficult or expensive than the Company anticipates; or litigation orother matters before regulatory agencies, whether currently existing orcommencing in the future, may delay the occurrence or non-occurrence ofevents longer than the Company anticipates.

Contact:Kenneth CeonzoDirector of Investor Relations718-782-6200 extension 8279