FOR IMMEDIATE RELEASE

                    TRI-COUNTY FINANCIAL CORPORATION DECLARES
                            A 3-FOR-2 STOCK SPLIT AND
                 ANNOUNCES APPROVAL OF STOCK REPURCHASE PROGRAM


WALDORF,  MARYLAND,  OCTOBER 25, 2004--Tri-County  Financial Corporation (OTCBB:
TCFC),  the holding  company for Community Bank of Tri-County,  announced  today
that its Board of Directors  declared a 3-for-2  stock split of its  outstanding
common  stock,  payable  in the form of a 50% stock  dividend.  The stock  split
entitles each shareholder of record at the close of business on November 5, 2004
to receive  one  additional  share for every two shares of common  stock held on
that date.  Tri-County  Financial  will pay cash in lieu of  issuing  fractional
shares based on the closing price on the record date, as adjusted for the split.
The additional shares resulting from the split will be distributed by Tri-County
Financial's transfer agent on or about December 1, 2004.  Currently,  Tri-County
Financial has approximately 774,000 shares of common stock outstanding.

From November 5, 2004 through December 1, 2004,  shares of Tri-County  Financial
will trade with due bills,  which  entitle  those who buy the stock  during this
time to receive the 50% stock dividend.

In  addition,  Tri-County  Financial's  Board  of  Directors  has  approved  the
repurchase of up to 39,000 shares, or approximately 5% of Tri-County Financial's
outstanding  common stock. The program will commence after Tri-County  Financial
has filed its Form 10-Q for the  quarterly  period  ended  September  30,  2004.
Repurchases,  which will be conducted through open market purchases or privately
negotiated  transactions,  will be made  from time to time  depending  on market
conditions and other factors.  Repurchased  shares will be treated as authorized
but unissued shares.

Tri-County Financial  Corporation is the bank holding company for Community Bank
of  Tri-County,  which  conducts  business  through  its main office in Waldorf,
Maryland,  and seven branch  offices in Bryans Road,  Dunkirk,  Leonardtown,  La
Plata, Charlotte Hall and Lexington Park, Maryland.

This report  contains  certain  forward-looking  statements made pursuant to the
safe harbor provisions of the Private Securities  Litigation Reform Act of 1995.
Such statements are subject to certain risks and uncertainties including changes
in economic conditions in the Corporation's  market area, changes in policies by
regulatory  agencies,  fluctuations  in  interest  rates,  loan  demand  in  the
Corporation's  market area, and  competition  that could cause actual results to
differ  materially from historical  earnings and those presently  anticipated or
projected. The Corporation wishes to caution readers not to place undue reliance
on any such forward-looking statements, which reflect management's analysis only
as the date made. The Corporation  does not undertake any obligation to publicly
revise these forward-looking  statements to reflect events or circumstances that
arise after the date of such statements.