Exhibit 99.1


                                  NEWS RELEASE

FOR IMMEDIATE RELEASE                               Contact: Daniel L. Krieger,
                                                             President
                                                             (515) 232-6251
                                                             (515) 663-3042
JANUARY 24, 2003

                            AMES NATIONAL CORPORATION
                   ANNOUNCES FOURTH QUARTER AND 2002 EARNINGS

     Fourth  Quarter 2002 earnings were  $2,706,000,  or $.86 per share,  a 4.7%
increase over the $.82 per share,  or $2,568,000,  earned in the same quarter in
2001. For the year,  earnings were a record  $11,340,000,  or $3.63 per share, a
7.5%  increase  over the  $10,547,000,  or $3.38  per share  earned in 2001.  An
improved net interest margin contributed to the higher earnings.

     For the year,  affiliate bank deposits increased 7.6% to $551 million while
loans  increased 2.9% to $332 million.  Total corporate  assets  increased 8.8%,
ending the year at $677 million compared to $622 million at year-end 2001.

     During 2002,  Ames National paid dividends of $2.16 per share,  including a
$.44 special dividend, compared to $1.64 paid in 2001.

     Ames National  Corporation  affiliate  Iowa 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, Marshalltown.