EXHIBIT 99.1





PRESS RELEASE

FOR IMMEDIATE RELEASE
October 30, 2003

For Further Information Contact:                  Barry E. Backhaus, President
                                                  and Chief Executive Officer
                                                  First Federal Bankshares, Inc.
                                                  329 Pierce Street
                                                  Sioux City, IA  51101
                                                  712.277.0200



                FIRST FEDERAL BANKSHARES, INC. DECLARES DIVIDEND
                        ANNOUNCES ANNUAL MEETING RESULTS

Sioux City, Iowa - October 30, 2003 - First Federal  Bankshares,  Inc.  (Nasdaq:
FFSX)  (the  "Company")  announced  the  results of its 2003  Annual  Meeting of
Stockholders held on October 30, 2003. At the meeting,  stockholders elected Jon
G.  Cleghorn,  Steven  L.  Opsal  and  David  Van  Engelenhoven  to the Board of
Directors of the Company, each for a three-year term. Stockholders also approved
amendments to the Company's 1999 Stock Option Plan and its 1999  Recognition and
Retention Plan and ratified the  appointment  of McGladrey & Pullen,  LLP as its
independent auditor.

At the Annual Meeting,  President Backhaus announced that the Company's Board of
Directors  declared a quarterly  dividend of $0.09 per share,  a $0.01  increase
over that distributed last quarter. The dividend is payable on November 28, 2003
to stockholders of record on November 14, 2003.

First Federal  Bankshares,  Inc. is the holding  company for First Federal Bank,
which operates ten banking  offices in northwest  Iowa, an office in South Sioux
City, Nebraska and five offices in central Iowa.