FOR IMMEDIATE RELEASE
March 14, 2007

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

               Flatbush Federal Bancorp, Inc. Reports Earnings for
                    Quarter and Year Ended December 31, 2006

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 $58,000,
or $0.02 per share,  for the  quarter  ended  December  31,  2006 as compared to
$79,000,  or $0.03 per share,  for the same quarter in 2005.  Net income for the
year ended  December  31,  2006 was  $195,000,  or $0.07 per share,  compared to
$368,000 or $0.14 per share for the year ended  December 31, 2005, a decrease of
$173,000, or 47.0 %.

The Company's assets at December 31, 2006 were $154.4 million compared to $144.0
million at December  31,  2005,  an increase of $10.4  million,  or 7.2 %. Loans
receivable  increased  $9.6 million,  or 9.9%, to $106.2 million at December 31,
2006 from $96.6  million as of December  31,  2005.  Mortgage-backed  securities
increased  $1.1  million,  or 4.3%,  to $26.7  million at December 31, 2006 from
$25.6  million  at  December  31,  2005.  As a  partial  offset,  cash  and cash
equivalents  decreased $904,000,  or 18.4%, to $4.0 million at December 31, 2006
from $4.9  million at December  31, 2005.  In  addition,  investment  securities
decreased  $819,000 or 10.5%,  to $7.0  million at  December  31, 2006 from $7.8
million at December 31, 2005.

Total deposits  decreased  $3.6 million,  or 3.3%, to $105.6 million at December
31, 2006 from $109.2  million at December 31, 2005.  Advances  from Federal Home
Bank of New York increased $13.5 million, or 79.4%, to $30.5 million at December
31, 2006 from $17.0 million at December 31, 2005.

Advances  from  the  Federal  Home  Loan  Bank  of New  York  were  invested  in
mortgage-backed  securities  and loans  receivable  consisting  of  residential,
commercial, construction and mixed-use properties. This resulted in the increase
of  $9.6  million  in  loans  receivable  and an  increase  of $1.1  million  in
mortgage-backed securities.  Repayments in investment securities resulted in the
net decrease of $819,000. Cash and cash equivalents decreased $904,000.

Total  stockholders'  equity decreased $1.0 million to $15.0 million at December
31, 2006 from $16.0  million at December  31, 2005.  The  decrease  reflects the
inclusion of $1.2 million of accumulated other  comprehensive loss, which is the
result of the implementation of Statement of Financial  Accounting Standards No.
158, Employers'  Accounting for Defined Benefit Pension and Other Postretirement
Plans (FAS 158).  This new  standard is effective  for plan  sponsors  with,  or
controlled by an entity with,  publicly traded equity  securities.  The standard
does not impact the determination of the Plan's expense; however, it does impact
how the Plan is recorded on the employer's  balance sheet. FAS 158 requires that
the  overfunded or  underfunded  status of a pension or  postretirement  plan be
recorded on the  employer's  balance  sheet as an asset or liability  (after any
adjustment  for taxes).  Any  difference  between the amount  already  reflected
(generally the accrued or prepaid  expense) and the required amount is reflected
as an adjustment to Accumulated Other Comprehensive Income.

 The decrease to stockholders'  equity also reflects  $190,000 of repurchases of
shares  under the stock  repurchase  program,  and  $3,000  for the  payment  of
fractional  shares  under  the  stock  dividend  program,  partially  offset  by
increases net income of $195,000,  the market appreciation of $7,000 relating to
the release of ESOP  shares,  amortization  of $34,000 of unearned  ESOP shares,
amortization of $92,000 of restricted stock awards for the Company's Stock-Based
Incentive Program, and amortization of $82,000 of stock option awards.

On June 30, 2005, 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  will be made  from  time to time  and may be
effected through open market purchases, block trades and in privately negotiated
transactions.  Repurchased  stock  will be held as  treasury  stock  and will be
available for general corporate purposes. As of December 31, 2006, 36,340 shares
have been acquired at an average price of $8.12 per share.

<page>

INCOME INFORMATION - Three month periods ended December 31, 2006 and 2005

Net income  decreased  by $21,000,  or 26.6%,  to $58,000 for the quarter  ended
December  31, 2006 from  $79,000 for the same  quarter in 2005.  The decrease in
earnings  for the  quarter  was  primarily  due to an  increase  of  $350,000 in
interest  expense  resulting  from an increase of 58 basis points in the average
cost of deposits to 2.56% for the quarter ended December 31, 2006 from 1.98% for
the quarter  ended  December  31, 2005.  In  addition,  the increase in interest
expense  resulted  from an increase of $15.1  million in the average  balance of
Federal Home Loan Bank of New York  Advances to $29.6 million at an average cost
of 5.07% for the quarter ended December 31, 2006. For the quarter ended December
31, 2005, the average balance of Federal Home Loan Bank of New York Advances was
$14.5 million at an average cost of 4.34%.  Net income also  decreased as result
of an  increase  of  $5,000 in  non-interest  expenses,  partially  offset by an
increase of $248,000 in interest income,  an increase of $50,000 in non-interest
income,  a $35,000  decrease in income taxes, and a $1,000 decrease in provision
for loan losses.

INCOME INFORMATION - Years ended December 31, 2006 and 2005

Net income  decreased  by  $173,000,  or 47.0%,  to $195,000  for the year ended
December  31, 2006 from  $368,000  for the year ended  December  31,  2005.  The
decrease was  primarily  due to an increase of $1.4 million in interest  expense
resulting from an increase of 48 basis points in the average cost of deposits to
2.30%  for the year  ended  December  31,  2006 from  1.82%  for the year  ended
December 31, 2005. In addition,  the increase in interest  expense resulted from
an increase of $19.6 million in the average balance of Federal Home Loan Bank of
New York  Advances  to $25.3  million at an  average  cost of 4.88% for the year
ended  December 31,  2006.  For the year ended  December  31, 2005,  the average
balance of Federal  Home Loan Bank of New York  Advances  was $5.7 million at an
average  cost of 4.04%.  Net income also  decreased  as result of an increase of
$117,000 in  non-interest  expense and an increase of $29,000 in  provision  for
loan  losses,  which was  partially  offset by an  increase  of $1.1  million in
interest income, an increase of $140,000 in non-interest  income, and a decrease
of $170,000 in income taxes.

Other  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  condition,  changes  in  interest  rates,  deposit  flows,  demand for
mortgage  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.



<page>

SELECTED FINANCIAL CONDITION DATA

                                      DECEMBER 31,     DECEMBER 31,
                                          2006             2005
                                      ------------     ------------
                                           (in thousands)

Total Assets                          $    154,382     $    143,953
Loans Receivable                           106,230           96,591
Investment                                   6,990            7,809
Securities
Mortgage-backed Securities                  26,727           25,633
Cash and Cash Equivalents                    4,007            4,911
Deposits                                   105,641          109,218
Borrowings                                  30,487
                                                            16,969
Stockholders'                               15,046           16,033
Equity

SELECTED OPERATING DATA

<table>
<caption>
                                           AT OR FOR THE THREE                  AT OR FOR THE
                                        MONTHS ENDED DECEMBER 31,          YEARS  ENDED DECEMBER 31,
                                          2006             2005             2006             2005
                                      ------------     ------------      ------------     ------------

                                         <c>              <c>               <c>              <c>
                                                               (in thousands)

Total Interest                         $    2,282      $     2,034       $     8,773      $     7,708
Income
Total Interest Expense                      1,029              679             3,620            2,219
Net Interest                                1,253            1,355             5,153            5,489
Income
Provision for Loan Loss                         0                1                49               20
Non-interest                                  105               55               351              212
Income
Non-interest                                1,271            1,266             5,150            5,033
Expense
Income Taxes                                   29               64               110              280
Net Income                             $       58      $        79       $       195      $       368

PERFORMANCE RATIOS

Return on Average Assets                    0.15%            0.22%             0.12%            0.26%
Return on Average Equity                    1.46%            1.96%             1.21%            2.31%
Interest Rate                               3.24%            3.79%             3.41%            3.91%
Spread

ASSET QUALITY RATIOS

Allowance for Loan Losses to
   Total Loans Receivable                   0.19%            0.20%             0.19%            0.20%
Non-performing Loans to Total               0.05%            0.14%             0.05%            0.14%
Assets

CAPITAL RATIO
Equity toTotal                                                                10.01%           10.57%
Assets

</table>