EXHIBIT 99.1






BEDFORD BANCSHARES NEWS RELEASE
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Contact:          H. K. Neal, President and CEO
                  J.W. Smith, CFO
                  (540) 586-2590

Date:             May 22, 1998


                              For Immediate Release
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               BEDFORD BANCSHARES, INC. ANNOUNCES STOCK REPURCHASE

         Bedford,   Virginia,   May  22,   1998:   Bedford   Bancshares,   Inc.,
(NASDAQ-BFSB) the holding company of Bedford Federal Savings Bank, has announced
its  intention  to  repurchase  up to 57,477  presplit  shares of its  currently
outstanding common stock. Harold K. Neal, President and Chief Executive Officer,
said that Bedford  Bancshares  Board of  Directors,  at their meeting on May 20,
1998,  authorized  the  repurchase  of up to 5% of its  1,148,950  common shares
currently outstanding.

         The  repurchase  will be made in open-market  and privately  negotiated
transactions  subject  to the  availability  of stock,  market  conditions,  the
trading price of the stock and the Company's financial performance.  Repurchased
shares become  authorized  but unissued  shares and will be utilized for general
corporate  and other  purposes,  including  the issuance of shares in connection
with the exercise of stock options.

         In a prior release,  the Company  announced a 2-for-1 stock split to be
paid in the form of a 100% stock  dividend.  The split will be paid on June 15th
to holders of record as of June 1st.

         Bedford  Federal  Savings  Bank is  headquartered  in Bedford,  VA. and
operates through its main office and two branch offices.