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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
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     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.

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