First Federal Bankshares, Inc.

PRESS RELEASE

July 18, 2008
For Immediate Release


For Further Information Contact:   Barry E. Backhaus
                                   Interim President and Chief Executive Officer
                                   First Federal Bankshares, Inc.
                                   329 Pierce Street, P.O. Box 897
                                   Sioux City, IA  51102
                                   712.277.0222



   First Federal Bankshares, Inc. and Vantus Bank Announce Management Changes

Sioux City, Iowa. First Federal Bankshares,  Inc., the holding company of Vantus
Bank,  announced today the resignation of Michael W. Dosland,  the President and
Chief  Executive  Officer of the Company and the Bank. Mr. Dosland also resigned
as a  director  of the  Company  and of the Bank.  Mr.  Dosland  has  accepted a
position with another  company.  The  resignations  were effective  immediately.
Barry E.  Backhaus has been  appointed  interim  President  and Chief  Executive
Officer of the Company and the Bank,  effective  immediately.  Mr.  Backhaus,  a
current  director  of the Company and the Bank,  served as  President  and Chief
Executive Officer for 16 years, until his retirement in 2006.

Arlene T. Curry, Chairman of the Board of Directors,  said, "We are pleased that
Barry  Backhaus  has agreed to return to lead  First  Federal  and Vantus  Bank,
particularly  given  the  current  challenging  economic  and  financial  market
conditions."

First  Federal  Bankshares,  Inc.  common  stock is traded on the Nasdaq  Global
Market  under the  symbol  "FFSX."  Vantus  Bank,  a  community  bank,  conducts
operations through its 14 full-service  offices in northwest Iowa, central Iowa,
and northeast Nebraska.