METZ JOINS BLACKHAWK BANK BOARD

For Immediate Release                        For more information call:
                                             R. Richard Bastian, III
                                             608-299-2400

September 21, 2004

James D. Metz, Assistant Superintendent of Operations for the Belvidere School
District and former Boone County banker has been appointed a director of
Blackhawk Bancorp and Blackhawk State Bank.

In making the announcement R. Richard Bastian, III, president of Blackhawk,
said, "Jim is a leader in Boone County, which is an important market for our
bank.  We welcome his knowledge of the community and his consummate banking
skills to our board." Metz spent 12 of his 24 years in banking with Belvidere
National Bank & Trust and has been involved in a variety of civic and charitable
activities in the community.

"I am truly honored," said Metz about his appointment. "I know a lot of the
folks at Blackhawk and have been impressed with the changes and the commitment
they've made to the Boone County market.  I look forward to contributing to
their success."

Metz becomes the second Boone County business leader to join Blackhawk's board
of directors.  Steve Thomas, president of Poplar Grove Airmotive, Inc. joined
the bank's board in 2003. "We are delighted to welcome someone with his
character, knowledge and experience to the board," said Thomas.

With its acquisition of First Bank in 2003 Blackhawk became the second largest
bank in Boone County, one of the fastest growing in the State of Illinois.  It
has two offices in Belvidere and one in Capron.  The bank's office on North
State in Belvidere is open on Sundays.

Blackhawk State Bank is a wholly owned subsidiary or Blackhawk Bancorp, Inc.
with assets of approximately $425 million.  The bank has offices in Beloit, WI,
and Rockford, Belvidere, Roscoe, Machesney Park, Capron, Rochelle and Oregon,
IL.  Blackhawk's stock is publicly traded on the Over the Counter When used in
this communication, the words "believe", "expect", "anticipate", "plan",
"estimate", "may", "will" or similar expressions are intended to identify
forward-looking statements. The Company's actual results may differ materially
from those described in the forward-looking statements. Factors which could
cause such a variance to occur include, but are not limited to: heightened
competition; adverse state and federal regulation; failure to obtain new or
retain existing customers; ability to attract and retain key executives and
personnel; changes in interest rates; unanticipated changes in industry trends;
unanticipated changes in credit quality and risk factors, including general
economic conditions; success in gaining regulatory approvals when required;
changes in the Federal Reserve Board monetary policies; unexpected outcomes of
new and existing litigation in which Blackhawk or its subsidiaries, officers,
directors or employees is named defendants; technological changes; changes in
accounting principles generally accepted in the United States; changes in
assumptions or conditions affecting the application of "critical accounting
policies"; and the inability of third party vendors to perform critical services
for the company or its customers.