Montgomery Financial

                                   Corporation

       119 East Main Street - P.O. Box 776 - Crawfordsville, Indiana 47933
                              Phone (765) 362-4710




FOR MORE INFORMATION                                       FOR IMMEDIATE RELEASE
CONTACT:
         J. Lee Walden
         President
         (765) 362-4710

Date: November 29, 2000


                        MONTGOMERY FINANCIAL CORPORATION

                       ANNOUNCES STOCK REPURCHASE PROGRAM

         CRAWFORDSVILLE,  INDIANA,  November  29,  2000 -  Montgomery  Financial
Corporation  (Nasdaq:  MONT),  the holding  company for  Montgomery  Savings,  A
Federal Association, announced today that commencing on December 5, 2000 it will
repurchase up to five percent (5%) of its outstanding  shares of common stock in
the open  market  over the next  twelve  months.  At  September  30,  2000,  the
Company's common stock outstanding amounted to 1,244,790 shares. The shares will
be purchased at prevailing market prices from time to time depending upon market
conditions.

         J. Lee Walden,  President and Chief  Executive  Officer of the Company,
indicated that the Board of Directors approved the repurchase program in view of
the current  price level of the  Company's  common stock and the strong  capital
position of  Montgomery  Savings.  Mr.  Walden  stated that "we believe that the
repurchase of our shares represents an attractive  investment  opportunity which
will benefit the Company and its  shareholders.  The repurchased  shares will be
returned to the status of  authorized  and  unissued  shares and may be used for
general corporate purposes,  including the issuance of shares in connection with
the exercise of stock options."

         Over the past  three  months,  the  shares  traded  between  $8.875 and
$10.00.

         Montgomery Financial serves Indiana's Montgomery,  Fountain, Warren and
Tippecanoe  counties through five retail offices.  As of September 30, 2000, the
Company  had  assets  of  $140.7   million,   deposits  of  $98.6   million  and
stockholder's equity of $17.1 million.

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