<DOCUMENT>
<TYPE>EX-99
<SEQUENCE>2
<FILENAME>ex99_062606.txt
<DESCRIPTION>PRESS RELEASE
<TEXT>
                                                                            NEWS


400 Somerset St., New Brunswick, NJ 08901
732.342.7600


       Magyar Bancorp Statement on Dwek Properties and Sugar Maple Estates

New  Brunswick,  NJ - June 26, 2006 - Magyar Bank,  the principal  subsidiary of
Magyar  Bancorp,  is releasing  the following  statement to clarify  information
regarding  loans made by the Bank to Solomon Dwek, and properties  controlled by
companies owned by him.

The Bank holds a  Construction  Mortgage  Loan to Sugar  Maple  Estates,  LLC, a
company  principally  owned by  Solomon  Dwek.  The  purpose of this loan is the
acquisition  and  development of approved  residential  building lots located in
Rumson,  New  Jersey.  The  total  mortgage  loan  is  $13,135,000.  This  is  a
participation  loan,  and  the  outstanding  principal  balance  of  the  Bank's
participation  interest in this loan is $4,212,936.  This loan is collateralized
by real estate located in Rumson, New Jersey.

In addition,  the Bank holds a  Construction  Mortgage Loan to Dwek  Properties,
LLC, a company  principally  owned by Solomon Dwek.  The purpose of this loan is
the  acquisition  and  development  of  an  approved  building  lot  located  in
Farmingdale, New Jersey into a commercial retail center. The total mortgage loan
is $1,214,000 and the  outstanding  principal  balance in this loan is $721,016.
This loan is collateralized by real estate located in Farmingdale, New Jersey.

These  loans  were  originated  within  the  Bank's  guidelines,  including  the
requirement that the maximum  loan-to-value  ratio limit is 75% of the appraised
value of the property.

Although the Bank believes that these loans are well  collateralized,  there can
be no  assurance  that  losses  will not  occur or that  significant  additional
expenses  will not be  incurred  in the  process of the  resolution  of the Dwek
situation.

Magyar  Bancorp  (NASDAQ:  MGYR) is the parent  company of Magyar  Bank,  a $403
million asset community bank headquartered in New Brunswick,  New Jersey. Magyar
Bank has been serving  families and businesses in Central New Jersey for over 80
years with a complete line of financial products and services,  and today Magyar
operates branch locations in New Brunswick, North Brunswick and South Brunswick.
Visit Magyar online at www.magbank.com.

Contact: John Reissner, Vice President, Marketing Director, 732.214.2083




</TEXT>
</DOCUMENT>
