FIRST FEDERAL BANCORPORATION
      ANNOUNCES STOCK PLAN TRUST PURCHASE PROGRAM


     Bemidji, Minnesota ...  August 20, 1996:  First Federal
Bancorporation announced today that its Board of Directors has
approved the establishment of a grantor trust that would commence
purchasing up to 86,250 shares of the company's common stock.  The
purchases will be dependent upon market conditions and there is no
guarantee as to the exact number of shares to be purchased by the
company's trust.

     Mr. William R. Belford, President and Chief Operating Officer
of the company, stated that the trust's purchases are expected to
be completed within the next twelve months, with shares being held
principally for delivery upon the exercise of outstanding stock
options.  According to Mr. Belford, the trust's purchases generally
would be effected through open market purchases, although he did
not rule out the possibility of unsolicited negotiated transactions
or other types of repurchases.  Mr. Belford explained that the
trust's purchases are designed to offset the future dilution
incurred in connection with implementation of the company's stock
option plan.  In addition, Mr. Belford noted that the Board of
Directors considers the company's common stock to be an attractive
investment.