Contact:  Mr. Brad Snider
          President
          (870)  523-3611
                                          FOR IMMEDIATE RELEASE

                                          Date: January 15, 1999


                 NORTH ARKANSAS BANCSHARES, INC.
               ANNOUNCES STOCK REPURCHASE PROGRAM


     North Arkanasas Bancshares, Inc. (OTC Bulletin Board:NARK),
headquartered in Newport, Arkansas, announced today that it had
received the approval of the Office of Thrift Supervision to
repurchase up to 10% of its issued and outstanding shares of
common stock, approximately 37,030 shares.  The program will be
dependent upon market conditions and there is no guarantee as to
the exact number of shares to be repurchased by the Corporation.

     Brad Snider, President of the Corporation, stated that the
Board of Directors has authorized the repurchase program, which
is expected to be completed within one year.  Mr. Snider
explained that the Board of Directors considers the Corporation's
common stock to be an attractive investment.

     According to Mr. Snider, the repurchases generally would be
effected through open market purchases.

     North Arkansas Bancshares, Inc. is the holding company for
Newport Federal Savings Bank, which conducts business through one
banking office in Newport, Arkansas.