PRESS RELEASE
                                 -------------


                         FIRST FEDERAL BANCORPORATION
                      ANNOUNCES STOCK REPURCHASE PROGRAM


     Bemidji, Minnesota, May 21, 1996......First Federal Bancorporation 
announced today that it is commencing a stock repurchase program to acquire up 
to 40,969 shares of the Corporation's common stock, which represents 
approximately 5% of the outstanding common stock. The program will be dependent 
upon market conditions and there is no guarantee as to the exact number of 
shares to be repurchased by the Corporation.

     William R. Belford, President of the Corporation, stated that the Board of 
Directors has authorized the repurchase program, which is expected to be 
completed within 12 months. Mr. Belford explained that the Board of Directors 
considers the Corporation's common stock to be an attractive investment. In 
addition, the repurchase program is designed to offset the future dilution 
incurred in connection with the administration of the Corporation's stock option
plan. It is expected that a reduction in the amount of the Corporation's 
outstanding stock would have the effect of increasing the Corporation's per 
share earnings and book value.

     According to Mr. Belford, the repurchases generally would be effected 
through open market purchases, although he did not rule out the possibility of 
unsolicited negotiated transactions or other types of repurchases.