TO: All Media
DATE: Wednesday, August 26, 2009

Arrow Financial Corporation Declares Stock Dividend

Thomas L. Hoy, Chairman, President and C.E.O., announced that a 3% stock dividend was declared on August 26, 2009 and will be distributed on September 29, 2009.

Shareholders of record on September 18, 2009 will receive three additional shares of Arrow Common Stock for every one hundred shares owned. They will also receive the cash equivalent of any fractional shares which they are entitled, since no partial shares will be issued.

Arrow Financial Corporation (NasdaqGS® – AROW) is a multi-bank holding company headquartered in Glens Falls, NY serving the financial needs of northeastern New York. Arrow is the parent of Glens Falls National Bank and Trust Company and Saratoga National Bank and Trust Company. Other subsidiaries include North Country Investment Advisers, Inc. and Capital Financial Group, Inc., an insurance agency specializing in the sale and servicing of group health plans.