PRESS RELEASE                                     FOR IMMEDIATE RELEASE
                                                  ---------------------
                                                  For More Information Contact:
                                                  Cameron D. McKeel
                                                  (870) 836-6841
                                                  August 29,2001


                              HCB BANCSHARES, INC.
                   ANNOUNCES AGREEMENT WITH MAJOR STOCKHOLDER

     HCB Bancshares,  Inc. (the "Company"),  headquartered in Camden,  Arkansas,
announced  today that it has  entered  into an  agreement  with  Stilwell  Value
Partners,  L.P.,  Stilwell  Associates,  L.P.,  Stilwell  Value  LLC and  Joseph
Stilwell  (collectively,  the "Stilwell Group"),  who own 6.9 % of the Company's
outstanding common stock.

     Under the agreement, HCB Bancshares agreed to expand its Board of Directors
by one  member and to appoint  to the Board a  director  to be  proposed  by Mr.
Stilwell.  The director  must be reasonably  determined by HCB  Bancshares to be
qualified to serve as a director.  This director will also serve on the Audit or
Compensation  Committees  of the  Board of  Directors  and will be  appointed  a
director of the Company's  subsidiaries,  including the Company's main operating
subsidiary, HEARTLAND Community Bank.

     In  addition,  HCB  Bancshares  has  agreed to adopt a target to  achieve a
return on equity  greater  than the  average  for all  publicly  traded  thrifts
(excluding mutual holding  companies) for the fiscal year beginning July 1, 2002
and every year  thereafter.  So long as HCB  Bancshares is successful in meeting
this  target,  the  Stilwell  Group  has  agreed  not to  solicit  proxies  from
stockholders  to  elect  persons  to  the  Board  of  Directors  or  to  approve
shareholder proposals,  interfere with the operational decisions of the Company,
or make any public statement  critical of the Company,  its Board or management.
In addition,  so long as the return on equity  target is achieved,  the Stilwell
Group has agreed to fully  support the  independence  of the Company and to vote
its shares for the Board's  nominees for election to the Board of Directors  and
otherwise in accordance with the recommendation of the Board of Directors.

     If HCB Bancshares fails to meet the return on equity target,  it has agreed
to retain an investment banking firm to help the Board evaluate  alternatives to
maximize shareholder value.

     Cameron D. McKeel, President of HCB Bancshares,  stated, "We are pleased to
have reached this agreement with our largest outside stockholder,  Mr. Stilwell.
We believe this agreement sets  realistic,  constructive  goals and allows us to
avoid the expense and distraction of a potential proxy contest.  We look forward
to working  with the new  director  to  enhance  profitability  and to  maximize
shareholder value."

     HCB Bancshares,  Inc. is the holding company for HEARTLAND  Community Bank,
which conducts business through its main office located in Camden,  Arkansas and
five branch offices located in Bryant, Camden, Fordyce, Monticello and Sheridan,
Arkansas.