Financial Institutions, Inc. Announces Dividend

December 5, 2005

WARSAW, N.Y.--(BUSINESS WIRE)--Dec. 5, 2005--Financial Institutions, Inc. (Nasdaq: FISI) announced that its Board of Directors declared a quarterly cash dividend of $0.08 per common share, payable on January 3, 2006 to shareholders of record on December 19, 2005.

In addition, the Board declared a quarterly dividend of $2.12 per share on Series B-1, 8.48% Preferred Stock and $0.75 per share on Series A, 3% Preferred Stock, payable on January 3, 2006 to shareholders of record on December 19, 2005.

With total assets of $2.1 billion, Financial Institutions, Inc. is the parent company of Five Star Bank, which provides a wide range of consumer and commercial banking services to individuals, municipalities and businesses through a network of 50 offices and 72 ATM's in Western and Central New York State. Through its Investment Services affiliate, FII also provides diversified financial services to its customers and clients, including brokerage, trust and insurance. More information on FII and its subsidiaries is available through the Company web site at www.fiiwarsaw.com.

Safe Harbor Statement

This press release contains forward-looking statements as defined by federal securities laws. These statements may address issues that involve significant risks, uncertainties, estimates and assumptions made by management. Actual results could differ materially from current beliefs or projections. There are a number of important factors that could affect the Company's forward-looking statements which include the availability of cash to continue to pay a dividend, the impact of regulatory restrictions and other factors discussed in the Company's filings with the Securities and Exchange Commission. The Company undertakes no obligation to revise these statements following the date of this press release.

    CONTACT: Financial Institutions, Inc.
             Matthew T. Murtha, 585-786-1167
             mtmurtha@fiiwarsaw.com

    SOURCE: Financial Institutions, Inc.