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
                                   September 28, 2004

  FSF Financial Corp. Shareholders Approve Plan with MidCountry Financial Corp.
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        Hutchinson,  Minnesota  (NASDAQ - "FFHH") -- FSF Financial Corp.,  whose
family of companies include First Federal Bank, Firstate Investments,  Insurance
Planners of Hutchinson and  Homeowners  Mortgage  Corporation,  announced that a
Special  Meeting of Stockholders  was held today.  At the meeting,  stockholders
approved  the  Agreement  and Plan of Merger  dated May 14,  2004,  by and among
MidCountry Financial Corp., MidCountry Interim Corp. II and FSF Financial Corp.,
pursuant to which,  among other  things,  (i)  MidCountry  Interim  Corp.  II, a
newly-formed  subsidiary of MidCountry  Financial Corp. will merge with and into
FSF and (ii) upon  consummation  of the merger,  each  outstanding  share of FSF
common stock will be converted into the right to receive $35.00 in cash, without
interest. The Merger is expected to close in the fourth calendar quarter.

         FSF Financial Corp., a financial services company,  has four affiliated
companies.  First  Federal  Bank is a federally  chartered  stock  savings  bank
headquartered in Hutchinson, Minnesota. The Bank has thirteen offices located in
Hutchinson (2), Hastings,  Apple Valley,  Buffalo,  Glencoe, Inver Grove Heights
(2), Litchfield,  St. Cloud, Waconia,  Waite Park and Winthrop,  Minnesota.  The
Federal Deposit Insurance Corporation federally insures the Bank's deposits. 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".

        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  therefore
qualified by the Corporation's  cautionary  statements  contained in its filings
with the Securities and Exchange Commission.





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