First Niles Financial (FNFI) 8-K Other Events

Exhibit 99.1

FIRST NILES FINANCIAL, INC.

DECLARES CASH DIVIDEND

Niles, Ohio, February 24, 2006 - First Niles Financial, Inc., the parent company of Home Federal Savings and Loan Association of Niles, has announced a cash dividend of $.16 per share for the first quarter of 2006. The dividend will be payable on March 24, 2006 to shareholders of record on March 10, 2006.

Home Federal primarily serves the Niles, Ohio area. At December 31, 2005, Home Federal exceeded all its applicable regulatory capital requirements.

First Niles had $98.5 million in assets and $16.4 million in stockholders’ equity as of December 31, 2005. The stock of First Niles is traded on the Nasdaq SmallCap Market under the symbol “FNFI”.

FOR IMMEDIATE RELEASE	FOR FURTHER INFORMATION CONTACT:
February 24, 2006	Lawrence Safarek, Vice President
	First Niles Financial, Inc.
	55 N. Main Street
	Niles, Ohio 44446
	(330) 652-2539