First Niagara Financial Group, Inc. Declares Quarterly Dividend.

     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