EXHIBIT "99"



                                             EAST TEXAS FINANCIAL SERVICES, INC.

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    1200 South Beckham o P. O. Box 6910 o Tyler, TX 75711-6910 o 903-593-1767
                               o Fax 903-593-1094



                                  NEWS RELEASE


 For verification, contact:     Gerald W. Free, Vice Chairman/President/CEO
                                Derrell W. Chapman, Executive Vice President/
                                COO/CFO


Telephone: (903) 593-1767
Fax:       (903) 593-1094

For immediate release: October 18, 2002

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                       EAST TEXAS FINANCIAL SERVICES, INC.
        DECLARES CASH DIVIDEND AND ANNOUNCES ANNUAL STOCKHOLDERS MEETING

Tyler, Texas, October 18, 2002, - - - East Texas Financial Services, Inc., (OTC
Bulletin Board: ETFS.OB), the holding Company for First Federal Savings and Loan
Association of Tyler, Texas, today reported that the Company would continue its
quarterly cash dividend of $0.05 per share to be paid on November 20, 2002 to
stockholders of record as of November 6, 2002. The annualized dividend yield is
approximately 1.82% based on the most recent market price of $11.00.

In other matters, the Company announced the date for its next annual meeting of
Stockholders was set for 2:00 p.m. January 29, 2003 at the Company Offices
located at 1200 South Beckham Avenue in Tyler and that the record date for
voting on matters at the meeting was set for December 11, 2002.

East Texas Financial Services, Inc., is the holding company for First Federal
Savings and Loan Association of Tyler, Texas, which presently operates three
full service offices and one loan agency in the Tyler area and one full service
office in Gilmer, Texas.

The Company's stock is traded under the symbol "ETFS" on the OTC Electronic
Bulletin Board.