Exhibit 99.1
FSF Financial Corp.         Contact: Donald A. Glas, Chief Executive Officer
                                     George B. Loban, President
                                     Richard H. Burgart, Chief Financial Officer
                                     (320) 234-4500

                                     For Immediate Release
                                     July 26, 2001

                First Federal Bank Announces St. Cloud Expansion
                ------------------------------------------------

         Hutchinson, Minnesota (Nasdaq - "FFHH") -- First Federal Bank, a wholly
owned  subsidiary of FSF Financial  Corp.,  announces an agreement with ING Bank
fsb to purchase the St. Cloud,  Minnesota ING branch facility along with various
loans and  deposits in the St.  Cloud and  Minneapolis,  Minnesota  area.  First
Federal Bank has maintained an office within the Cashwise grocery store in Waite
Park, approximately 2 miles from the new facility, since 1995.

         "ING Bank has become  part of ING  Direct,  a  branchless  direct  bank
offering savings and lending products.  Traditional  banking  facilities are not
part of ING Direct's banking strategy.  We sought a potential  acquirer that has
demonstrated a true community  banking  philosophy.  I am extremely pleased that
First  Federal Bank has been  selected to continue the  community  banking model
that we have  employed  for over 10 years,"  noted Brian Myres,  Executive  Vice
President of ING Bank.

         "Our  community  banking  approach  is  currently  being  applied in 10
communities  in  Minnesota.  We are  fortunate  to be  able to  offer  a  second
full-service  banking  facility in the St. Cloud market," stated Donald A. Glas,
Co-Chairman  and CEO of First Federal Bank.  "Our goal is to continue  providing
quality  products and services  that the  customers of ING Bank have received in
the past."

         The  transaction  is expected to close during the fourth quarter of the
calendar year,  pending necessary  regulatory  approvals.  First Federal will be
purchasing branch related real estate, buildings,  equipment,  approximately $50
million in  deposits  and $30  million in loans.  The  majority of the loans are
commercial  real estate loans and the balance  consists of commercial  loans and
consumer  loans.   First  Federal  is  paying  a  premium  on  the  deposits  of
approximately  5.3% and the  transaction is expected to be accretive to earnings
in the first year.

         FSF Financial Corp., a financial services company,  has four affiliated
companies.  First  Federal  fsb is a  federally  chartered  stock  savings  bank
headquartered in Hutchinson,  Minnesota.  The Bank has eleven offices located in
Hutchinson (2), Hastings,  Apple Valley, Buffalo,  Glencoe, Inver Grove Heights,
Litchfield, Waconia, Waite Park and Winthrop, Minnesota. The Bank's deposits are
federally  insured by the Federal Deposit Insurance  Corporation.  The Bank is a
community-oriented,  full service  retail bank offering a variety of deposit and
loan products.  Homeowners Mortgage Corporation  originates residential mortgage
loans  from  offices  in  Vadnais  Heights  and  Hastings,  Minnesota.  Firstate
Investments provide non-insured  financial products in two locations.  Insurance
Planners of Hutchinson,  Inc., is a property and casualty  insurance agency with
two locations.  The Corporation's  common stock is traded on the Nasdaq National
Market under the symbol "FFHH".

        Zona Financial, Minneapolis, Minnesota initiated this transaction and
served as financial advisor to ING Bank.

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This press  release may  contain  forward-looking  statements  as defined by the
Private  Securities  Litigation  Reform Act of 1995.  Any such  forward  looking
statements  are  subject to various  risks and  uncertainties  and are  therefor
qualified by the company's  cautionary  statements contained in its filings with
the Securities and Exchange Commission