CONTACT:  James M. Roolf
                                                  
          FOR IMMEDIATE RELEASE                             (630) 875-7452 
                                                  TRADED:   NASDAQ/NMS
                                                  SYMBOL:   FMBI


                           FIRST MIDWEST BANCORP ANNOUNCES
                                 $4 MILLION RECOVERY


          ITASCA,  IL.,  JANUARY 29,  1997 --  First Midwest  Bancorp, Inc.
          (NASDAQ/NMS:FMBI)  today  announced  that  it  has   settled  for
          $4,050,000  a law  suit that  has pended  since 1993  against its
          former fidelity  bond insurer  related  to loans  charged off  in
          1992.    This significant  recovery  resulted  from the  vigorous
          prosecution  of  a  complex  claim  through  litigation  to   the
          settlement just successfully concluded.


          The settlement  proceeds have been  credited to  the reserve  for
          loan losses  while management  undertakes  an assessment  of  the
          impact  of the  recovery on  loan loss  reserve provisioning  and
          reserve levels appropriate  going forward.   The assessment  will
          also  consider  the impact  of  additional  whole loan  portfolio
          purchases  that are being  considered such as  was consummated in
          fourth quarter 1996.   Management anticipates the assessment will
          be concluded within approximately 120 days.



          At $3.1 billion, First Midwest Bancorp is Illinois' third largest
          publicly traded bank holding company and is engaged in commercial
          banking,   trust,   investment   management,  mortgage   services
          primarily in northern Illinois and eastern Iowa.


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