RELIANCE BANCORP, INC. TO REPURCHASE STOCK.

GARDEN CITY, N.Y.--(BUSINESS WIRE)--February 27, 1995--Reliance Bancorp, Inc. (NASDAQ/NMS:RELY) the holding company for Reliance Federal Savings Bank announced that it has received regulatory clearance to purchase up to 510,764 shares of its common stock.

Raymond L. Nielsen, Chairman of Reliance Bancorp, Inc. reported that the OTS has approved the Company's notice of waiver from regulations restricting the repurchase of its outstanding stock during the first 12 month period following conversion and the Company has been authorized by its Board of Directors to repurchase up to five percent of the Company's 10,215,279 outstanding shares. Reliance Bancorp, Inc. completed its offering of common stock in connection with the conversion of Reliance Federal Savings Bank from a federally chartered mutual savings bank to a federally chartered stock savings bank on March 31, 1994.

Mr. Nielsen said, The Board of Directors view the repurchase of shares along with a regular dividend policy and the pursuit of acquisition opportunities to be in keeping with its goal to growing shareholder value and believe the repurchase of our shares is an excellent long-term investment. The repurchase will be made in open-market transactions, subject to the availability of stock and such timing limitations as may be applicable.

Reliance Federal Savings Bank is headquartered in Garden City, N.Y. and operates through its administrative office in Garden City and through 11 full service branches in the Long Island, N.Y. metropolitan area. The Bank's deposits are insured by The Federal Deposit Insurance Corporation.

CONTACT: Reliance Bancorp,Inc.

Paul Hagan

Director of Financial Reporting

516/222-9300