Donald A. Lesch, Chairman/CEO
Indiana Federal Corporation
(219) 465-6607
Richard L. Schanze, Chairman/CEO
Pinnacle Financial Services, Inc.
(616) 983-6311


                                                November 14, 1996

                 INDIANA FEDERAL CORPORATION AND
        PINNACLE FINANCIAL SERVICES, INC. ANNOUNCE MERGER


     Valparaiso, Indiana - In a move that will create the largest
locally-managed financial institution on the southern tip of Lake
Michigan, the Boards of Directors of Indiana Federal Corporation
of Valparaiso, Indiana and Pinnacle Financial Services, Inc. of
St. Joseph, Michigan have approved plans to merge the two
institutions.  The "merger-of-equals" will create a company which
will provide a wide range of financial services and manage a
network of banking centers which will extend from Southwestern
Michigan to the Illinois state line.  Each share of Indiana
Federal Corporation common stock will be exchanged for one (1)
share of Pinnacle common stock.  The company will consolidate
under the name of Pinnacle Financial Services, Inc. with the
holding company headquartered in Valparaiso, Indiana.  The
largest subsidiary of the corporation, the merged Pinnacle Bank
and Indiana Federal Bank, will continue as Pinnacle Bank and will
be headquartered in St. Joseph, Michigan.

     "This merger augments our strategic commitment to position
ourselves as the premier, locally-managed bank in the area," said
Donald A. Lesch, Chairman of the Board of Indiana Federal
Corporation.  "With it, we can combine the economies of scale of
the large regional banks, but with true customer-focused, first
person service and product development.  Our 



goal has always been to provide a spectrum of financial services
from the perspective of the communities in which we operate. 
This partnership allows us to provide unique benefits to all our
customers."

     Pinnacle's 1995 acquisition of Maco Bancorp of Merrillville
and its primary subsidiary, First Federal Savings Bank of
Indiana, gave Pinnacle a presence in Northwest Indiana. 
According to Richard L. Schanze, Chairman of Pinnacle Financial
Services, Inc., this merger provides very valuable contiguous
market coverage.

     "When we acquired Maco, there was a large gap between our
Indiana and Michigan operations," he said.  "By merging with
another company with a similar background and similar business
philosophy and services, we not only bridge that gap, but can
also better serve our customers while increasing shareholder
value."

     The new corporation will be governed by a Board of Directors
consisting of ten members, five each from Indiana Federal and
Pinnacle.  Schanze will serve as Chairman/CEO and Lesch will be
Vice Chairman/President/COO.  At September 30, 1996, Pinnacle
reported assets totaling $1.018 billion while Indiana Federal
reported assets totaling $809 million.

     "With this merger, we will create a financial institution
with nearly $2 billion in assets," Schanze said.  "We will be the
largest locally-managed financial institution in the area."

     "This is truly a merger of equals, not only from the
perspective of assets, but also from the synergies which will be
achieved," Lesch explained.  "Our respective strengths complement
one another.  What we have done is increase our ability to
provide timely, exciting, innovative products and exemplary
service, all within the framework of a financially sound, growing
corporation."

     Indiana Federal currently operates 16 full-service banking
centers in Northwest Indiana, augmented by 27 ATMs.  Pinnacle has
17 branches in Southwest Michigan, 14 branches in Lake and Porter
Counties in Indiana, plus a total of 18 ATMs.  "In the banking
industry, size is becoming increasingly important to providing
great products and service to our customers," Schanze said. 
"With more than 40 branches in the area, we will indeed be a 



major force.  Equally important will be the tremendous innovation
and creativity inherent in the combination of two high
performance teams.  This is a very exciting event for our
respective institutions, our customers, our employees and our
shareholders."

     Lesch also emphasized that the company will be proactive in
expanding its market, either through new branches or
acquisitions.  "We will continue to aggressively expand our
product base and market penetration in our respective Indiana and
Michigan markets, along with looking at selective deals in the
Chicago suburban area," he said.

     The process of completing the merger, which is subject to
shareholder and regulatory approvals, will take four to six
months, according to Lesch and Schanze.

     Indiana Federal Corporation's shares are traded on the
Nasdaq National Market under the symbol "IFSL."  Pinnacle
Financial Services, Inc.'s shares are traded on the Nasdaq
National Market under the symbol "PNFI."

     There will be an investor and analyst informational
conference call tomorrow, Friday, November 15, 1996, at 10:30
a.m. CST (11:30 a.m. EST).  To listen in on the call, dial
1-800-982-5963.  The access code is 117157.  If you would like to
be faxed or mailed a copy of the materials to be reviewed, call
Brenda Sheetz at 1-800-720-3660.

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