EXHIBIT 28.1


PALFED, Inc. Press Release


                              For More Information Call:

                              PALFED, INC.
                              107 Chesterfield Street S.
                              Aiken, South Carolina  29801

                              John C. Troutman
                              President and CEO
                              (803) 642-1433

                              Howard M. Hickey, Jr.
                              Executive Vice President and
                                General Counsel
                              (803) 642-1437

                              November  20, 1996

                              FOR IMMEDIATE RELEASE

     AIKEN, South Carolina, November 20, 1996 -- PALFED, INC. (Nasdaq:PALM)
("PALFED" or the "Company") announced that it received a shareholder proposal
from Mid-Atlantic Investors for inclusion in the Company's Proxy Statement for
the 1997 Annual Meeting of Shareholders.  Mid-Atlantic's proposal, which, if
adopted,  would not be binding on the Company, calls for PALFED's Board of
Directors "immediately to take the necessary steps to achieve a sale, merger or
other acquisition of the Company."  Jerry Zucker, a partner of Mid-Atlantic
Investors, joined in the proposal.  According to a Schedule 13D filing with the
Securities and Exchange Commission, Mid-Atlantic and its partners, Messrs.
Zucker and Jerry Shearer, own 474,000 shares or 9.1% of the Company's
outstanding stock.

     In a separate letter to John Troutman, PALFED's President and Chief
Executive Officer, Mid-Atlantic Investors offered to withdraw its proposal if
PALFED's Board of Directors promptly elected M. Jerry Garfinkle as a director of
PALFED, formed a Merger and Acquisitions Committee of the Board with Mr.
Garfinkle as a member of this Committee, and engaged an investment advisor
skilled in mergers.

     Mr. Troutman commented, "We believe the Company's current strategy of
growth will build long-term shareholder value and the directors have no
intention to abandon that strategy and sell  the Company solely to satisfy the
demands of Mid-Atlantic and Messrs. Shearer and Zucker.

     "The Board of Directors unanimously opposes the resolution and believes a
forced sale of a company is never in the best interest of the shareholders.  The
Company already has a Strategic


Alternatives Committee which considers mergers and acquisitions and also has
engaged an investment advisor skilled in such matters.  The Company will not be
coerced into ill-advised action to satisfy the greed of a minority shareholder."

     Mr. Troutman also added that the Board of Directors has previously
considered Mid-Atlantic's request to add Jerry Garfinkle, Assistant General
Counsel with Mr. Zucker's Intertech group, to the Board.  The Board found that
Mr. Garfinkle does not have the corporate or community presence to represent the
Company in Charleston and could not possibly represent the interests of all the
shareholders as an attorney of Mr. Zucker.  Jerry Zucker was offered the
opportunity to be a candidate for the Board and rejected that offer because he
"doesn't have the time."

     PALFED, Inc. is a South Carolina corporation whose principal subsidiary,
Palmetto Federal Savings Bank of South Carolina, operates 21 banking and eight
mortgage lending offices in South Carolina and one mortgage lending office in
Georgia.  At September 30, 1996, PALFED had $659.8 million in total assets and
deposits of $521.4 million.  PALFED's common stock is traded on the Nasdaq
National Market under the symbol "PALM."