EXHIBIT 99.1








PRESS RELEASE

August 21, 2003
For Immediate Release

For Further Information Contact:    Barry E. Backhaus
                                    President and Chief Executive Officer
                                    First Federal Bankshares, Inc.
                                    329 Pierce Street, P.O. Box 897
                                    Sioux City, IA  51102
                                    712.277.0200


                         FIRST FEDERAL BANKSHARES, INC.
                     COMPLETES STOCK REPURCHASE PROGRAM AND
                     ANNOUNCES NEW STOCK REPURCHASE PROGRAM


Sioux  City,  Iowa - August 21, 2003  (Nasdaq  National  Market - "FFSX")  First
Federal Bankshares,  Inc., the holding company of First Federal Bank,  announced
today that it completed its current stock  repurchase  program pursuant to which
the Company  repurchased  426,000  shares,  or 10% of its issued and outstanding
shares,  at an average price per share of $ 16.45.  The  repurchased  shares are
held as treasury stock and will be available for general corporate purposes. The
Company also  announced  that its Board of Directors has  authorized a new stock
repurchase program pursuant to which the Company intends to repurchase up to 10%
of its issued and outstanding  shares, or up to 377,000 shares.  The repurchases
generally will be effected through open market purchases,  although there may be
the  possibility  of  unsolicited  negotiated  transactions  or  other  types of
repurchases.

Barry E. Backhaus,  President and Chief Executive Officer of the Company, stated
"We are pleased to announce the new  repurchase  program.  We believe our common
stock remains a compelling  value at current  trading  prices and we believe the
deployment of some of the Company's capital into this investment is warranted."

First Federal  Bankshares,  Inc.  common stock is traded on the Nasdaq  National
Market under the symbol "FFSX." The Company is headquartered in Sioux City, Iowa
and its bank  subsidiary  operates ten offices in Northwest  Iowa,  an office in
South Sioux City, Nebraska and five offices in Central Iowa.