Exhibit 99.1





NEWS RELEASE                                         Contact: Daniel L. Krieger,
                                                              President
                                                              (515) 232-6251
July 19, 2002



                       AMES NATIONAL CORPORATION ANNOUNCES
                             SECOND QUARTER EARNINGS

         Second  quarter 2002 earnings were $.88 per share  compared to $.87 for
second quarter 2001. For first half 2002, earnings were $1.82 per share compared
to $1.70 per share a year ago, a 7% increase.

         During the second  quarter of this year gains on  securities  were $134
thousand  compared to $663  thousand  last year.  For the six months ending June
30th gains on securities  were $323  thousand  compared to $1.15 million for the
same period in 2001.

         Affiliate  bank deposits  increased to $511  million,  4% higher than a
year ago,  while loans  decreased 7%  reflecting  the  decrease in  construction
activity.  Total assets  increased 3% to $629 million from one-year  ago,  while
total capital rose to $98 million.

         United Bank & Trust N.A. the de novo bank  chartered  in  Marshalltown,
Iowa, opened officially for business on June 20, 2002.

         Ames National  Corporation  affiliate  banks are First  National  Bank,
Ames,  Boone  Bank  &  Trust  Co.,  Boone,  State  Bank  &  Trust  Co.,  Nevada,
Randall-Story   State  Bank,  Story  City  and  United  Bank  &  Trust  National
Association, Marshalltown.






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