EXHIBIT 99.1

                    PRESS RELEASE OF ALPENA BANCSHARES, INC.


                             Alpena Bancshares, Inc.
                               100 S. Second Ave.
                                Alpena, MI 49707
                                 (989) 356-9041


                                                           FOR IMMEDIATE RELEASE
March 24, 2005

Contact:     Martin A. Thomson
             President and Chief Executive Officer
             Alpena Bancshares, Inc.
             (989) 356-9041


     Alpena Bancshares, Inc. Receives Regulatory and Stockholder Approval to
               Complete Second Step Conversion and Stock Offering

Alpena, Michigan - Alpena Bancshares, Inc. (the "Company"), the holding company
for First Federal of Northern Michigan, has received final regulatory approval
to consummate the second-step mutual-to-stock conversion of Alpena Bancshares,
M.H.C., in which shares of common stock representing Alpena Bancshares, M.H.C.'s
ownership interest in the Company will be sold to investors. After consummation
of the conversion and stock offering, Alpena Bancshares, M.H.C. will cease to
exist and the Company will be succeeded by First Federal of Northern Michigan
Bancorp, Inc., a Maryland corporation and new holding company for First Federal
of Northern Michigan. As a result, First Federal of Northern Michigan Bancorp,
Inc. will become wholly owned by public stockholders. The transactions are
expected to be consummated upon the close of business on April 1, 2005.

The plan of conversion and reorganization of Alpena Bancshares, M.H.C. and the
issuance and contribution of cash and common stock to First Federal Community
Foundation, a charitable foundation established by the Company, were approved by
the stockholders of the Company and the members of Alpena Bancshares, M.H.C. on
March 23, 2005.

First Federal of Northern Michigan Bancorp, Inc. has accepted orders to purchase
1,701,202 shares of common stock at a purchase price of $10.00 per share. As a
part of the conversion, public stockholders of the Company as of the
consummation date will receive 1.8491 shares of First Federal of Northern
Michigan Bancorp, Inc. common stock in exchange for each of their existing
shares of Company common stock. Cash will be issued in lieu of any fractional
shares. The share exchange will occur on April 1, 2005.





After the consummation of the offering, the existing publicly traded shares of
the Company will cease trading. First Federal of Northern Michigan Bancorp,
Inc.'s common stock will trade on the Nasdaq National Market under the symbol
"FFNM."


This press release contains forward-looking statements about the total shares
outstanding following the completion of the transactions and the anticipated
consummation date. Projections about future events are subject to risks and
uncertainties that could cause actual results to differ materially. Factors that
might cause such differences include, but are not limited to, delays in
completing the transaction and changes in the securities markets.


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