IOWA FIRST BANCSHARES CORP.
Second and Cedar
Muscatine, Iowa 52761
(563) 263-4221

For more information contact:
D. Scott Ingstad, Chairman, President and CEO (563-262-4202) Or
Kim K. Bartling, Executive Vice President, Chief Operating Officer & Treasurer
(563-262-4216)

PRESS RELEASE

FOR RELEASE January 28, 2004, at 1:00 p.m. Central Standard Time

Iowa First Bancshares Corp. Reports Fourth Quarter and Full Year Financial
Results

Iowa First Bancshares Corp. (OTCBB IFST) today reported net income of $719,000
for the quarter ended December 31, 2003, compared to net income of $861,000 for
the quarter ended December 31, 2002, a decrease of $142,000 or 16.5%. This
decrease in net income resulted primarily from lower net interest income and
noninterest income during the fourth quarter of 2003 compared to the fourth
quarter of 2002. Diluted earnings per share were $.51 during the three months
ended December 31, 2003, and $.60 for the comparable period the prior year, a
decrease of $.09 or 15.0%.

Net income for the twelve months ended December 31, 2003, totaled $3,220,000
which was $350,000 or 9.8 % less than the comparable period last year. This
decrease in net income was primarily attributable to lower net interest income
and higher provision for loan losses during the year ended December 31, 2003,
compared to the same period in 2002. This was partially mitigated by higher
noninterest income during 2003 than during 2002. Diluted earnings per share for
the twelve months ended December 31, 2003, of $2.27 were $.21, or 8.5%, lower
than the prior year. The Company's return on average assets and return on
average equity for the year ended December 31, 2003, was .83% and 12.9%,
respectively.

Total average assets grew $5.3 million (1.4%), and total average deposits
increased $12.3 million (4.5%) during 2003. Net interest margin of 3.22%
declined from 3.39% when comparing 2003 and 2002. This translated into a
decrease of $459,000 or 4.0% in net interest income for the twelve months ended
December 31, 2003 compared to the twelve months ended December 31, 2002. The
provision for loan losses was $645,000 in 2003, compared to only $440,000 in
2002. This $205,000, or 46.6%, increase was necessary to maintain an adequate
allowance for loan losses. Net loan charge-offs totaling $769,000 during 2003
were substantially higher than the prior year which totaled only $318,000.

The Company during 2003 has repurchased for the treasury 8,600 shares or 0.6% of
the total common shares outstanding as of the prior year end. The Company plans
to continue repurchasing shares of its common stock as they become available.
These share repurchases are possible due to the strong capital base and
sufficient cash flow of Iowa First Bancshares Corp.

The board of directors declared a $.2425 per common share cash dividend to be
paid to shareholders of record December 30, 2003. This dividend is 3.2% higher
than the prior quarter's dividend and continues the Company's trend of
increasing the annual dividend payout. Dividends paid during 2003 resulted in an
annualized yield of over 3.50% on the December 31, 2002 stock price.

Iowa First Bancshares Corp. is a bank holding company headquartered in
Muscatine, Iowa. The Company provides a wide array of banking and other
financial services to individuals, businesses and governmental organizations
through its two wholly-owned national banks located in Muscatine and Fairfield,
Iowa. Iowa First Bancshares Corp. common stock is traded on the Over-The-Counter
Bulletin Board market under the symbol IFST.

This press release contains forward-looking statements. Investors are cautioned
that all forward-looking statements involve risks and uncertainties, and several
factors could cause actual results to differ materially from those in the
forward-looking statements. Forward-looking statements may relate to anticipated
revenues, gross margins, earnings, and growth of the market for our services and
products. The following factors, among others, could cause actual results to
differ from those indicated in the forward-looking statements: uncertainties
associated with market acceptance of and demand for the Company's services and
products, impact of competitive products and pricing, dependence on fourth party
suppliers, uncertainties associated with the development and deployment of
technology, regulatory or other developments in the industry, and the emergence
of future opportunities or threats. Investors are directed to the Company's 2002
Annual Report on Form 10-K which is filed with the Securities and Exchange
Commission.

CONSOLIDATED FINANCIAL HIGHLIGHTS
(Dollar amounts in thousands, except per share data)
(unaudited)

For the Three For the Three For the Twelve For the Twelve
Months Ended Months Ended Months Ended Months Ended
December 31, 2003 December 31, 2002 December 31, 2003 December 31, 2002
-----------------------------------------------------------------------------

Net Interest Income ................ $ 2,712 $ 2,919 $11,142 $11,601
Provision for Loan Losses .......... 120 110 645 440
Noninterest Income ................. 647 705 2,897 2,664
Noninterest Expense ................ 2,216 2,321 8,798 8,711
Net Income After Income Taxes ...... 719 861 3,220 3,570

Net Income Per Common Share,
Basic and Diluted ............... $ 0.51 $ 0.60 $ 2.27 $ 2.48

As of As of
December 31, 2003 December 31, 2002
-------------------------------------

Net loans .............................. $266,925 $273,922
Total Assets ........................... 372,414 378,705
Total Deposits ......................... 277,576 270,422

Tier 1 Capital ......................... 31,320 29,504