Doral Financial Corporation (NYSE: DRL), a diversified financial services company, today announced that the Board of Directors voted to increase the regular quarterly 

cash dividend

 on the common stock from $0.15 to $0.18 per 

share

, an increase of 20%. The dividend will be 

paid

 on December 3, 2004, to 

shareholder

 of 

record

 on November 12, 2004. Mr. Salomon Levis, Chairman of the Board and Chief Executive Officer stated that based on the 

outstanding

 financial results for the first nine months of 2004, he anticipated another excellent year for Doral Financial. The Chairman added that the Board of Directors believes that 

shareholder

 should 

share

 in the Company's success and, therefore, voted once again to increase the 

quarterly

 dividend. This is the third dividend increase within twelve months for a total increase of 93%.

The Company, a financial 

holding company

 is the largest 

residential mortgage

 lender in Puerto Rico, and the parent company of Doral Bank, Puerto Rico's fastest growing 

commercial bank

, Doral Securities, a Puerto Rico based 

investment banking

 and 

brokerage firm

, Doral Insurance 

Agency

, 

Inc.

 and Doral Bank, FSB, a federal 

savings bank

 based in New York City.

FORWARD LOOKING STATEMENTS

This press release contains certain "forward-looking statements" concerning the Company's 

economic

 future 

performance

. The words or phrases "expect," "believe," "anticipate," "look 

forward

," "should" and similar expressions are meant to identify "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995.

The Company wishes to caution readers not to place undue reliance on any such forward-looking statements, which speak only as of the date made, and to advise readers that various 

factor

, including regional and national 

economic

 conditions, changes in 

interest rate

, 

competitive

 and regulatory 

factor

 and legislative changes, could affect the Company's financial 

performance

 and could cause the Company's actual results for future periods to differ materially from those anticipated or projected.

The Company does not undertake, and specifically disclaims any 

obligation

, to update any forward-looking statements to reflect occurrences or unanticipated events or circumstances after the date of such statements.