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October 2, 2006                              Point of Contact: Charles J. Viater
                                                                   President/CEO

                         MFB CORP. ANNOUNCES RENEWAL OF
                             SHAREHOLDER RIGHTS PLAN


         Mishawaka, Indiana - MFB Corp. (NASDAQ/MFBC), (the "Corporation"),
today announced that the Board of Directors has renewed the Corporation's
Shareholder Rights Plan, which was originally adopted and has been in place
since October, 1996 and which expired on October 1, 2006, through the adoption
of a new Shareholder Rights Plan (the "Plan"). Like the prior plan, the Plan is
designed to enhance long term shareholder value by limiting the ability of
individuals to engage in inadequate, undesirable or hostile takeover attempts.
The Plan also allows the Corporation to carry out its strategic plan of
enhancement of long term shareholder value as a local, independent community
bank. The Plan has not been adopted in response to any major purchase of
Corporation common stock and the Corporation is not aware of any such major
purchase. Rather, the Board of Directors has renewed the Plan at this time in
order to safeguard the interests of the Corporations' shareholders.

         To implement the Plan, shareholders of record as of October 21, 2006,
will receive one right for each outstanding share of the Corporation's Common
Stock. Initially, the Rights will trade automatically with the Common Stock and
separate Right Certificates will not be issued. The Rights will expire on
October 2, 2016, unless earlier redeemed or exchanged. The Board of Directors of
the Corporation may approve redemption of the Rights in whole, but not in part,
at a price of $.01 per Right.

         Each Right entities the registered holder, subject to the terms of the
Rights Agreement, to purchase from the Corporation one share of the
Corporation's Common Stock at a purchase price of $93.00 per share, subject to
adjustment. The Rights will not be exercisable until a subsequent distribution
date which will occur only if a person or group (excluding certain related
persons) acquires beneficial ownership of 12% or more of the Corporation's
Common Stock (or 10% if a person or group of persons is declared an "Adverse
Person" by the Corporation's Board), or announces a tender or exchange offer
that would result in such person or group owning 30% or more of the Common
Stock. Upon the happening of certain other events, the Rights become exercisable
to purchase shares of Common Stock of the Corporation (or, in certain
circumstances, other consideration) at a 50% discount to market price. The Plan
will be described in the Corporation's Form 8-A filing with the SEC and in a
summary that will be mailed to all shareholders.

         Mr. Viater explained that the renewal of the Plan will permit the
Corporation's directors and management to continue to build long term value for
the shareholders and maintain a locally owned and operated banking alternative
in Mishawaka, Indiana and the surrounding communities. Mr. Viater further
pointed out that the issuance of the Rights has no dilutive effect on the shares
themselves or on the Corporation's earnings.

         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 and private client services
to the Indianapolis market through its office in Hamilton County. For more
information, go to www.mfbbank.com.

Forward-Looking Information

         Pursuant to the "Safe Harbor" provision in the Private Securities
Litigation Reform Act of 1995, statements in this Press Release relating to
plans, strategies, economic performance and trends, projections of results of
specific activities or investments and other statements that are not
descriptions of historical facts may be forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of
the Securities Act of 1933 and Section 21E of the Securities Exchange Act of
1934. Forward-looking information is inherently subject to risks and
uncertainties, and actual results could differ materially from those currently
anticipated due to a number of factors, which include, but are not limited to,
risk factors discussed in the Corporation's Annual Report on Form 10-K and in
other documents filed by the Corporation with the Securities and Exchange
Commission from time to time. Forward-looking statements may be identified by
terms such as "may," "will," "should," "could," "expects," "plans," "intends,"
"anticipates," "believes," "estimates," "predicts," "forecasts," "potential" or
"continue" or similar terms or the negative of these terms. Although we believe
that the expectations reflected in the forward-looking statements are
reasonable, we cannot guarantee results, levels of activity, performance or
achievements. The Corporation has no obligation to update these forward-looking
statements.


INDS01 CVS 875253v1