PRESS RELEASE
May 29, 2009
For Immediate Release


For Further Information Contact:    Levon Mathews
                                    President and Chief Executive Officer
                                    First Federal Bankshares, Inc.
                                    712.277.0201

        FIRST FEDERAL BANKSHARES, INC. RECEIVES NASDAQ DEFICIENCY LETTER

Sioux City, Iowa. First Federal Bankshares,  Inc. (the "Company") (Nasdaq Global
Market:  FFSX),  the parent  company of Vantus  Bank,  announced  today that the
Company has  received a Nasdaq  Staff  Determination  letter  dated May 22, 2009
notifying the Company that,  because of the Company's failure to timely file its
Form 10-Q for the period ended March 31, 2009, the Company has not complied with
Nasdaq  Marketplace Rule 5250(c)(1).  As the Company  previously  reported,  the
failure to timely  file the Form 10-Q was due to the  additional  time needed by
the  Company  to  determine  the fair value of  certain  investment  securities,
complete  its  financial  statements,  and  have  the  report  reviewed  by  its
accountants and attorneys. The Company intends to file the Form 10-Q immediately
following the completion of its assessment.

Under the rule,  the Company has 60 calendar  days,  or until July 21, 2009,  to
submit a plan to regain compliance and if accepted,  the Company will be granted
an  exception of up to 180  calendar  days from the filing's due date,  or until
November 11, 2009, to regain compliance. The Company anticipates that the filing
of the Form10-Q will be completed before a plan needs to be submitted to Nasdaq.