THE CORPORATE LIBRARY

Related Party Transactions and Outside Related Director Information

Clifton Savings Bancorp, Inc. (CSBK)

7/12/2006 Proxy Information

LOANS AND EXTENSIONS OF CREDIT. The Sarbanes-Oxley Act generally prohibits loans by Clifton Savings to its executive officers and directors. However, the Sarbanes-Oxley Act contains a specific exemption from such prohibition for loans by Clifton Savings to its executive officers and directors in compliance with federal banking regulations. Federal regulations require that all loans or extensions of credit to executive officers and directors of insured institutions must be made on substantially the same terms, including interest rates and collateral, as those prevailing at the time for comparable transactions with other persons and must not involve more than the normal risk of repayment or present other unfavorable features. Clifton Savings is therefore prohibited from making any new loans or extensions of credit to executive officers and directors at different rates or terms than those offered to the general public, except for loans made pursuant to programs generally available to all employees. Notwithstanding this rule, federal regulations permit Clifton Savings to make loans to executive officers and directors at reduced interest rates if the loan is made under a benefit program generally available to all other employees and does not give preference to any executive officer or director over any other employee.

In addition, loans made to a director or executive officer in an amount that, when aggregated with the amount of all other loans to the person and his or her related interests, are in excess of the greater of $25,000 or 5% of Clifton Savings' capital and surplus, up to a maximum of $500,000, must be approved in advance by a majority of the disinterested members of the Board of Directors.

OTHER TRANSACTIONS. In fiscal 2005, Clifton MHC, the mutual holding company and majority stockholder of the Company, and the Company entered into a Loan Agreement pursuant to which the Company agreed to lend Clifton MHC up to $250,000. Pursuant to the terms of the Loan Agreement, funds advanced to Clifton MHC bear no interest. At March 31, 2006, the Company had advanced $250,000 to Clifton MHC.

6/10/2005 Proxy Information

Mr. Celentano and Mr. Smith are first cousins.

LOANS AND EXTENSIONS OF CREDIT. The Sarbanes-Oxley Act generally prohibits loans by Clifton Savings to its executive officers and directors. However, the Sarbanes-Oxley Act contains a specific exemption from such prohibition for loans by Clifton Savings to its executive officers and directors in compliance with federal banking regulations. Federal regulations require that all loans or extensions of credit to executive officers and directors of insured institutions must be made on substantially the same terms, including interest rates and collateral, as those prevailing at the time for comparable transactions with other persons and must not involve more than the normal risk of repayment or present other unfavorable features. Clifton Savings is therefore prohibited from making any new loans or extensions of credit to executive officers and directors at different rates or terms than those offered to the general public, except for loans made pursuant to programs generally available to all employees. Notwithstanding this rule, federal regulations permit Clifton Savings to make loans to executive officers and directors at reduced interest rates if the loan is made under a benefit program generally available to all other employees and does not give preference to any executive officer or director over any other employee.

In addition, loans made to a director or executive officer in an amount that, when aggregated with the amount of all other loans to the person and his or her related interests, are in excess of the greater of $25,000 or 5% of Clifton Savings' capital and surplus, up to a maximum of $500,000, must be approved in advance by a majority of the disinterested members of the Board of Directors.

OTHER TRANSACTIONS. Mr. Smith's paving construction company occasionally provides construction services for Clifton Savings. In fiscal 2005, Clifton Savings paid a total of $242,000 to Mr. Smith's paving construction company. This amount did not represent more than 5% of the gross revenues that Mr. Smith's paving construction company earned during fiscal 2005.

In fiscal 2005, Clifton MHC, the mutual holding company and majority stockholder of the Company, and the Company entered into a Loan Agreement pursuant to which the Company agreed to lend Clifton MHC up to $250,000. Pursuant to the terms of the Loan Agreement, funds advanced to Clifton MHC bear no interest. At March 31, 2005, the Company had advanced $250,000 to Clifton MHC.

F. Dennis Hahofer, son of Frank J. Hahofer, director of the Company, served as Senior Vice President of the Bank through his retirement on March 31, 2005. During the years ended March 31, 2005, 2004 and 2003, F. Dennis Hahofer was paid an aggregate salary, bonus and matching contributions under the Bank's 401(k) plan of $98,073, $95,123 and $96,169, respectively.