Financial Institutions Announces Its Inclusion in the New Nasdaq Global Select Market

June 30, 2006

WARSAW, N.Y.--(BUSINESS WIRE)--June 30, 2006--

Financial Institutions, Inc. (NASDAQ: FISI) ("FII"), the parent company of Five Star Bank, today announced that it has been included in the NASDAQ Global Select Market tier. The new listing tier has the highest initial listing standards of any exchange in the world based on financial and liquidity requirements. Only 1,200 of the approximately 3,200 stocks that are traded on the NASDAQ qualified for the premier listing tier.

Beginning July 3, NASDAQ-listed companies will be classified under three listing tiers -- NASDAQ Global Select Market, NASDAQ Global Market, and NASDAQ Capital Market. NASDAQ also plans to launch indexes based on these new tiers. Prior to NASDAQ's introduction of its new listing tiers, the Company was listed on the NASDAQ National Market, which has been renamed to be the NASDAQ Global Market.

"Financial Institutions is an example of an industry leader that has achieved superior listing standards, which clearly defines the essence of the NASDAQ Global Select Market," said Bruce Aust, Executive Vice President, Corporate Client Group. "NASDAQ is focused on leading a race to the top in terms of listing qualifications. In recognizing these companies, we are highlighting their achievement in meeting the requirements to be included in the market with the highest listing standards in the world," added Mr. Aust.

NASDAQ announced the new three-tier listing classification in February 2006 and named the companies selected for the Global Select Market Tier on June 26, 2006. The new tier becomes effective July 3, 2006. For additional information about the NASDAQ Global Select Market, please go to: http://www.nasdaq.com/GlobalSelect.

About Financial Institutions, Inc.

With total assets of $2.0 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, Five Star Investment Services, Inc., FII also provides diversified financial services to its customers and clients, including brokerage 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 effectiveness of its strategy and bank consolidation, its ability to reduce operating expenses, the attitudes and preferences of customers, the competitive environment 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.

Source: Financial Institutions, Inc.