[logo of open-winged eagle] HMN Financial, Inc. 101 North Broadway Spring Valley, MN 55975 Phone 507-346-7345 Fax 507-346-1111 NEWS RELEASE For Immediate Release For Additional Information Contact: James B. Gardner, Executive Vice President HMN Financial, Inc. (507) 346-7345 HMN FINANCIAL, INC. ANNOUNCES STOCK REPURCHASE PROGRAM - ------------------------------------------------------- SPRING VALLEY, MINNESOTA, June 30, 1997 ... HMN Financial, Inc., (HMN) (NASDAQ:HMNF) announced its intention starting in July to repurchase up to 7.1%, or 300,000 shares, of its outstanding shares in the open market over the next 12 month period. The shares will be purchased at prevailing market prices from time to time, depending upon market conditions. ***END***