EXHIBIT 99.1





                                  PRESS RELEASE



FOR IMMEDIATE RELEASE                               Contact:  Daniel L. Krieger,
                                                            Chairman & President
                                                                  (515) 232-6251
February 11, 2005




                            AMES NATIONAL CORPORATION
                           ANNOUNCES DIVIDEND INCREASE


The Ames  National  Corporation  Board of  Directors at its February 9th meeting
increased the quarterly dividend from $0.49 per share to $0.75 per share payable
May 16,  2005 to  shareholders  of record May 2,  2005,  a 53%  increase  in the
regular dividend.  Based on this increase, the Company's Board of Directors does
not anticipate the payment of a special dividend.




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