Chairman of the Board Retires, Swan and Weber Named.

Business Editors

LOCKPORT, N.Y.--(BUSINESS WIRE)--Jan. 8, 2001

David W. Heinrich, chairman of the boards of directors of First Niagara Financial Group, Inc. (Nasdaq: FNFG) and First Niagara Bank recently announced his retirement.

"I am proud to have worked with such an impressive organization," said Heinrich. "However, after 29 years of service, it's time for me to focus more of my time on enjoying my family and traveling."

Heinrich was originally elected to the bank's board in July 1969 and served until April 1991. He rejoined the bank's board in June 1993. He was elected to serve as board chairman for both the bank and its parent company, First Niagara Financial Group, Inc., in 1997. He is the retired president of Heinrich Chevrolet Corp.

"Dave has been a dedicated and valued leader and board member," said President and CEO of First Niagara Bank and First Niagara Financial Group, Inc., William E. Swan. "We appreciate his contributions and wish him well on his retirement."

Following Heinrich's announcement, Swan has been elected to serve as chairman of the boards of both the bank and the holding company while continuing in his role as president and CEO. Additionally, Robert G. Weber, a board member since 1996, has been elected to serve as chairman of the executive committee, a new position created to assist Swan in his role as the first inside chairman of the board in recent times. Weber will function as the liaison between the board and management in accordance with recent revisions made in the organization's governance policy.

"We are fortunate to have a board member as capable as Bob to serve in this important capacity as our lead director. He will be a strong asset and is perfect for this role," said Swan.

Swan joined First Niagara Bank in 1988 as senior executive vice president and was named president and CEO in 1989. Following an IPO in 1998, he also became president and CEO of the bank's parent company, First Niagara Financial Group, Inc.

The recipient of numerous civic, community and professional awards and citations, Swan has been honored by St. Bonaventure University, the American Lung Association of W.N.Y., Inc., Children's Hospital of Buffalo, the YMCA of Greater Buffalo, Barnabite Fathers, Diocese of Buffalo and Junior Achievement of WNY, Inc. He currently serves as chairman of the board of his alma mater, St. Bonaventure University. He is the immediate past chairman for the Community Bankers Association of New York State.

Swan also serves on the boards of First Niagara Bank Foundation, RSI Retirement Trust, Catholic Charities of Buffalo, the Buffalo Niagara Partnership, the Buffalo Niagara Enterprise and the New York Business Development Corporation.

Weber is a retired managing partner of KPMG and serves on a number of community boards including Roswell Park Cancer Institute, Roswell Park Cancer Institute Foundation, Niagara Lutheran Home Foundation, Canisius High School, Studio Arena Theatre, Lutheran Church Missouri Synod -Eastern District and The Buffalo Club.

First Niagara Financial Group, Inc., is the parent holding company of First Niagara Bank, Cortland Savings Bank and Cayuga Bank. The group serves the Western and Central regions of New York State with a total of 36 banking offices. While the company's primary market areas are New York State, the company does serve markets across the United States through First Niagara Bank subsidiaries Empire National Leasing, Inc. Niagara Investment Advisors, Inc. and NOVA Healthcare Administrators, Inc. The group and its subsidiaries employ more than 1,000 people.

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Corporation Information

First Niagara Financial Group, Inc. 6950 South Transit Road P.O. Box 514 Lockport, NY 14095-0514

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