FOR
IMMEDIATE RELEASE


May 14,
2008





Contact:
            Jesus
      R. AdiaPresident
      and Chief Executive Officer(718)
      677-4414





Flatbush
Federal Bancorp, Inc. Reports 2008 First Quarter Operating Results





Brooklyn,
NY – Flatbush Federal Bancorp, Inc. (the “Company”) (OTC Bulletin
Board:  FLTB), the holding company of Flatbush Federal Savings and
Loan Association (the “Association”), announced consolidated net income of
$2,000, or $0.001 per share for the quarter ended March 31, 2008 as compared to
net income of $383,000, or $0.143 per share for the same quarter in
2007.





The
Company’s assets decreased $2.6 million, or 1.7%, to $146.2 million at March 31,
2008 from $148.8 million at December 31, 2007.  Cash and cash
equivalents increased $4.3 million, or 86.0%, to $9.3 million at March 31, 2008
from $5.0 million at December 31, 2007.  Loans receivable decreased
$3.5 million, or 3.4%, to $98.0 million as of March 31, 2008 from $101.5 million
as of December 31, 2007.  Mortgage-backed securities decreased
$722,000, or 2.8%, to $24.6 million as of March 31, 2008 from $25.4 million as
of December 31, 2007.  Investment securities decreased $2.5 million,
or 38.5%, to $4.0 million as of March 31, 2008 from $6.5 million as of December
31, 2007.





Total
deposits decreased $94,000, or 0.1%, to $102.6 million at March 31, 2008 from
$102.7 million at December 31, 2007. Advances from the Federal Home Loan Bank of
New York decreased $2.9 million, or 10.2%, to $25.4 million at March 31, 2008
from $28.3 million at December 31, 2007.





Total
stockholders’ equity decreased $65,000 to $15.5 million as of March 31, 2008
from $15.6 million as of December 31, 2007.





On August
30, 2007, the Company approved a stock repurchase program and authorized the
repurchase of up to 50,000 shares of the Company’s outstanding shares of common
stock.  Stock repurchases have been made from time to time and may be
effected through open market purchases, block trades and in privately negotiated
transactions.  Repurchased stock is held as treasury stock and will be
available for general corporate purposes.  During the quarter ended
March 31, 2008, the Company did not repurchase any shares. As of the quarter
ended March 31, 2008, 5,060 shares have been repurchased as part of the
Company’s current repurchase program at a weighted average price of
$5.67.








INCOME
INFORMATION – Three month periods ended March 31, 2008 and 2007





Net
income decreased $381,000, to $2,000 for the quarter ended March 31, 2008 from
$383,000 for the quarter ended March 31, 2007.  For the quarter ended
March 31, 2007, non-interest income included proceeds of $500,000 from a life
insurance policy the Association owned on the life of former Flatbush Federal
Bancorp, Inc. CEO and President, Anthony J. Monteverdi and non-interest expense
included the one time accrual of $221,000 for the accelerated vesting of stock
options and restricted stock due to the death of Mr. Monteverdi. The decrease in
net income for the quarter was primarily due to decreases of $230,000 in
interest income, and $506,000 in non-interest income, and increases of $27,000
in interest expense on deposits, and $57,000 in income taxes, which were
partially offset by decreases of $80,000 in interest expense on borrowings from
the FHLB of New York, $357,000 in non-interest expense and $2,000 in provision
for loan loss.





Additional
financial information is included in the table that follows.  All
information is unaudited.





This
press release may contain certain “forward-looking statements” which may be
identified by the use of such words as “believe,” “expect,” “intend,”
“anticipate,” “should,” “planned,” “estimated,” and
“potential.”  Examples of forward-looking statements include, but are
not limited to, estimates with respect


to our
financial condition, results of operations and business that are subject to
various factors which could cause actual results to differ materially from these
estimates and most other statements that are not historical in
nature.  These factors include, but are not limited to, general and
local economic conditions, changes in interest rates, deposit flows, demand for
mortgages and other loans, real estate values, and competition; changes in
accounting principles, policies or guidelines; changes in legislation or
regulation; and other economic, competitive, governmental, regulatory, and
technological factors affecting our operations, pricing, products and
services.













SELECTED
      FINANCIAL CONDITION DATAMarch
      31,
            
            
            December
      31,2008
            
            
            2007(dollars
      in thousands)Total
      Assets
            
            $
            146,203
            
            
            $
            148,839Loans
      Receivable
            
            
            97,961
            
            
            
            101,483Investment
      Securities
            
            
            3,997
            
            
            
            6,492Mortgage-backed
      Securities
            
            
            24,629
            
            
            
            25,351Cash
      and Cash Equivalents
            
            
            9,338
            
            
            
            4,968Deposits
            
            
            102,578
            
            
            
            102,672Borrowings
            
            
            25,445
            
            
            
            28,252Stockholders’
      Equity
            
            
            15,496
            
            
            
            15,562CONDENSED
      OPERATING DATA




AT
      OR FOR THE THREEMONTHS
      ENDED MARCH 31,2008
            
            
            2007(dollars
      in thousands)Total
      Interest Income
            
            $
            2,064
            
            
            $
            2,294Total
      Interest Expense on Deposits
            
            
            714
            
            
            
            688Total
      Interest Expense on Borrowings
            
            
            310
            
            
            
            390Net
      Interest Income
            
            
            1,040
            
            
            
            1,217Provision
      for Loan Losses
            
            
            -
            
            
            
            2Non-interest
      Income
            
            
            67
            
            
            
            573Non-interest
      Expense
            
            
            1,102
            
            
            
            1,459Income
      Taxes (Benefit)
            
            
            2
            
            
            
            (55
            )Net
      Income
            
            $
            2
            
            
            $
            383PERFORMANCE
      RATIOSReturn
      on Average Assets
            
            
            0.005
            %
            
            
            0.984
            %Return
      on Average Equity
            
            
            0.05
            %
            
            
            10.02
            %Interest
      Rate Spread
            
            
            2.78
            %
            
            
            3.08
            %ASSET
      QUALITY RATIOSAllowance
      for Loan Losses toTotal
      Loans Receivable
            
            
            0.21
            %
            
            
            0.19
            %Non-performing
      Loans to Total Assets
            
            
            0.05
            %
            
            
            0.05
            %CAPITAL
      RATIOAssociation’s
      Core Tier 1 Capital to Adjusted Total Assets
            
            
            10.89
            %
            
            
            10.28
            %