[LETTERHEAD]


June 13, 1997


To:  Participants in the Anchor BanCorp Wisconsin Inc. Employee Stock Ownership
     Plan


As described in the attached materials, your proxy as a stockholder of Anchor
BanCorp Wisconsin Inc. (the "Company") is being solicited in connection with the
proposals to be considered at the Company's upcoming Annual Meeting of
Stockholders.  We hope you will take advantage of the opportunity to direct the
manner in which shares of Common Stock of the Company allocated to your account
under the Anchor BanCorp Wisconsin Inc. Employee Stock Ownership Plan ("ESOP")
will be voted.

Enclosed with this letter is the Proxy Statement which describes the matters to
be voted upon, a voting instruction ballot, which will permit you to vote the
shares allocated to your account, and a postage paid return envelope.  After you
have reviewed the Proxy Statement, we urge you to vote your shares held pursuant
to the ESOP by marking, dating, signing and returning the enclosed voting
instruction ballot to the Administrators of the ESOP in the accompanying
envelope.  The ESOP Administrators will certify the totals to the Company for
the purpose of having those shares voted by the Trustees of the ESOP.

We urge each of you to vote, as a means of participating in the governance of
the affairs of the Company.  If your voting instructions for the ESOP are not
received, the shares allocated to your account will be voted by the Trustees in
the same ratio on each matter for which instructions for allocated shares are
received from all participants.  While I hope that you will vote in the manner
recommended by the Board of Directors, the most important thing is that you vote
in whatever manner you deem appropriate.  Please take a moment to do so.

Please note the enclosed material relates to those shares which have been
allocated to your account under the ESOP.  You will receive other voting
materials for those shares owned by you individually and not under the ESOP.

Sincerely,



/s/  Douglas J. Timmerman
     ------------------------
     Douglas J. Timmerman
     President