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Contact: Charles J. Viater
President and Chief Executive Officer
Phone: (574) 277-4200
Fax: (547) 273-7801
Date:  July 29, 2005

FOR IMMEDIATE RELEASE

           MFB Corp. Issues $5.0 Million of Trust Preferred Securities

Mishawaka, Indiana (July 29, 2005) --MFB Corp. ("MFB") (NASDAQ: MFBC) today
announced it has raised $5.0 million through a private
placement of trust preferred securities. The trust preferred securities were
issued by a special purpose trust subsidiary.

The trust preferred securities will mature in 30 years, will require quarterly
distributions, and will bear a fixed rate of interest of 6.22% per annum until
September 15, 2010, resetting quarterly thereafter at the prevailing three-month
LIBOR rate plus 1.7% per annum. MFB may redeem the trust preferred securities,
in whole or in part, without penalty, on or after September 15, 2010, or earlier
upon the occurrence of certain events with the payment of a premium upon
redemption.

"This offering provides the company with long term funding which will not only
supplement MFB Financial's regulatory capital, but also will provide additional
funding for future business opportunities," stated Charles J. Viater, President
and Chief Executive Officer of MFB.

This press release shall not constitute an offer to sell or the solicitation of
an offer to buy the trust preferred securities. The trust preferred securities
have not been registered under the Securities Act of 1933 and may not be offered
or sold in the United States absent registration or an applicable exemption from
registration requirements.

MFB Corp.'s wholly-owned bank subsidiary, MFB Financial, provides retail and
business financial services to the Michiana area through its eleven banking
centers in St. Joseph and Elkhart counties.

Forward-Looking Statements

This press release contains certain forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking
statements include expressions such as "expects," "intends," "believes," and
"should," which are necessarily statements of belief as to the expected outcomes
of future events. Actual results could materially differ from those presented.
MFB Corp. undertakes no obligation to release revisions to these forward-looking
statements or reflect events or circumstances after the date of this release.
The Company's ability to predict future results involves a number of risks and
uncertainties, some of which have been set forth in the Company's most recent
annual report on Form 10-K, which disclosures are incorporated by reference
herein.

INDS01 CVS 777751v2