FOR IMMEDIATE RELEASE
January 29, 2008

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, 2007

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 a consolidated net loss of $327,000,
or $0.12 per share,  for the quarter ended  December 31, 2007 as compared to net
income of $58,000,  or $0.02 per share, for the same quarter in 2006. Net income
for the year ended December 31, 2007 was $89,000,  or $0.03 per share,  compared
to $195,000 or $0.07 per share for the year ended  December 31, 2006, a decrease
of $106,000, or 54.4 %.

The Company's assets at December 31, 2007 were $148.8 million compared to $154.4
million at  December  31,  2006,  a decrease  of $5.6  million,  or 3.6 %. Loans
receivable  decreased  $4.7 million,  or 4.4%, to $101.5 million at December 31,
2007 from  $106.2  million at  December  31,  2006.  Mortgage-backed  securities
decreased  $1.3  million,  or 4.9%,  to $25.4  million at December 31, 2007 from
$26.7 million at December 31, 2006.  Investment securities decreased $500,000 or
7.1%,  to $6.5  million at December  31, 2007 from $7.0  million at December 31,
2006. As a partial offset, cash and cash equivalents  increased $1.0 million, or
25.0%,  to $5.0  million at December  31, 2007 from $4.0 million at December 31,
2006.

Total deposits  decreased  $2.9 million,  or 2.7%, to $102.7 million at December
31, 2007 from $105.6  million at December 31, 2006.  Advances  from Federal Home
Bank of New York decreased  $2.2 million,  or 7.2%, to $28.3 million at December
31, 2007 from $30.5 million at December 31, 2006.

Total  stockholders'  equity increased $516,000 to $15.6 million at December 31,
2007 from $15.0 million at December 31, 2006.

The  increase  to   stockholders'   equity   reflects  net  income  of  $89,000,
amortization  of $34,000 of unearned  ESOP shares,  amortization  of $177,000 of
restricted  stock  awards  for  the  Company's  Stock-Based  Incentive  Program,
amortization  of $195,000 of stock  option  awards and a decrease of $145,000 of
accumulated other  comprehensive  loss. This was partially offset by $124,000 of
repurchases of shares under the stock repurchase program.

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. On August 30, 2007, the Company approved a second stock repurchase
program and authorized  the  repurchase of up to an additional  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  December  31,  2007,  the Company  repurchased  a total of 3,800
shares.  As of December 31, 2007, a total of 55,060 shares have been repurchased
at a weighted average price of $7.60.


INCOME INFORMATION - Three month periods ended December 31, 2007 and 2006

Net income  decreased  by  $385,000,  resulting  in a loss of  $327,000  for the
quarter  ended  December 31, 2007 compared to net income of $58,000 for the same
quarter in 2006. Non-interest expense increased $352,000 to $1.6 million for the
three  months  ended  December  31, 2007 from $1.3  million for the three months
ended  December  31,  2006.  There was a net  increase in salaries  and employee
benefits of $347,000 to $1.0  million for the three  months  ended  December 31,
2007 from  $691,000  for the three months  ended  December 31, 2006.  In October
2007, the Company implemented a voluntary  separation program that

<PAGE>

resulted in a one-time expense of $437,000 to salaries and employee benefits. In
addition,  non-interest expense included an increase of $103,000 in professional
fees  primarily  to comply with  Sarbanes-Oxley  Act,  Section  404,  which were
partially offset by decreases totaling $98,000 that were attributed to occupancy
expense,  equipment expense,  other insurance expense,  directors  compensation,
advertising and miscellaneous  expense. Net income also decreased as a result of
an increase of $71,000 in interest expense on deposits and decreases of $123,000
in total interest income and $33,000 in non-interest  income. This was partially
offset by a decrease of $30,000 in interest  expense on borrowings  from Federal
Home Loan Bank of New York, and decreases of $164,000 in income taxes and $1,000
in provision for loan losses.

INCOME INFORMATION - Years ended December 31, 2007 and 2006

Net income  decreased  by  $106,000,  or 54.4%,  to  $89,000  for the year ended
December  31, 2007 from  $195,000  for the year ended  December  31,  2006.  The
decrease  was  primarily  due to an increase  of  $740,000  in interest  expense
resulting  from a 55 basis point  increase  in the  average  cost of deposits to
2.85% on an average  balance of $101.1  million for the year ended  December 31,
2007 from  2.30% on an  average  balance  of $103.6  million  for the year ended
December 31, 2006. In addition,  the increase in interest  expense resulted from
an  increase  of $4.2  million in the  average  balance of  borrowings  from the
Federal Home Loan Bank of New York to $29.5  million at an average cost of 5.03%
for the year ended  December  31, 2007  compared to an average  balance of $25.3
million at an average cost of 4.88% for year ended December 31, 2006. Net income
also  decreased  as a result of an increase  of  $358,000 in total  non-interest
expense.  This amount  included  an increase of $139,000 in salary and  employee
benefits  to $3.0  million  during the year ended  December  31,  2007 from $2.9
million for the year ended  December 31, 2006.  For the year ended  December 31,
2007, the Company  implemented a voluntary  separation  program and reduction in
force  program that  resulted in a one-time  expense of $453,000 to salaries and
employee benefits. In addition,  directors compensation increased $74,000 during
the year ended December 31, 2007 after a $221,000 expense in March, 2007 for the
accelerated vesting of stock options and restricted stock following the death of
the  Company's  former CEO and  President  Anthony J.  Monteverdi.  Non-interest
expense  also  included an increase of $185,000 in  professional  fees  incurred
primarily  to comply with the  Sarbanes-Oxley  Act,  Section 404, an increase of
$26,000 to miscellaneous expense, partially offset by decreases totaling $66,000
attributed to equipment  expense,  occupancy  expense,  other insurance expense,
federal  insurance premium and advertising.  The increase to total  non-interest
expense was  partially  offset by  increases  of  $217,000  in interest  income,
$446,000 in non-interest  income, and decreases of $47,000 in provision for loan
loss, and $282,000 in income taxes.  Non-interest  income  included  proceeds of
$500,000  from a life  insurance  policy  the  Association  owned on the life of
Anthony J. Monteverdi.

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,
                                            2007             2006
                                        ------------     ------------
                                               (in thousands)

Total Assets                            $    148,839     $    154,382
Loans Receivable                             101,483          106,230
Investment Securities                          6,491            6,990
Mortgage-backed Securities                    25,351           26,727
Cash and Cash Equivalents                      4,968            4,007
Deposits                                     102,672          105,641
Borrowings                                    28,252           30,487
Stockholders'                                 15,562           15,046
Equity

<TABLE>
<CAPTION>

SELECTED OPERATING DATA

                                             AT OR FOR THE THREE                   AT OR FOR THE
                                           MONTHS ENDED DECEMBER 31,          YEARS ENDED DECEMBER 31,
                                            2007             2006              2007             2006
                                         ----------       -----------       ----------      -----------
                                                                 (in thousands)
<S>                                            <C>              <C>              <C>              <C>
Total Interest Income                     $    2,159      $     2,282      $     8,990      $     8,773
Total Interest Expense                         1,070            1,029            4,360            3,620
Net Interest Income                            1,089            1,253            4,630            5,153
Provision for Loan Loss                            0                0                2               49
Non-interest Income                               72              105              798              351
Non-interest Expense                           1,623            1,271            5,509            5,150
Income Taxes (Benefit) Expense                 (135)               29            (172)              110
Net (loss) Income                        $     (327)      $        58       $       89      $       195

PERFORMANCE RATIOS

Return on Average Assets                     (0.22)%            0.04%            0.06%            0.12%
Return on Average Equity                     (2.10)%            0.37%            0.57%            1.21%
Interest Rate Spread                           2.86%            3.24%            2.97%            3.41%

ASSET QUALITY RATIOS

Allowance for Loan Losses to
   Total Loans Receivable                      0.20%            0.19%            0.20%            0.19%
Non-performing Loans to Total                  0.04%            0.05%            0.04%            0.05%
Assets

CAPITAL RATIO
Association's Core Tier 1 Capital to Adjusted
total Assets                                                                    10.74%           10.01%

</TABLE>