QUITMAN BANCORP, INC. ANNOUNCES STOCK REPURCHASE

         Quitman,  Georgia-Quitman Bancorp, Inc. (OTC Bulletin Board - QTMB) the
parent holding company of Quitman  Federal  Savings Bank,  announced that it has
completed  the 15%  repurchase  (99,000  shares) of its common stock that it had
previously announced. In addition, the Company has obtain regulatory approval to
initiate a new repurchase program of up to 5% or approximately  28,000 shares of
the Company's  common stock to be purchased in the open market.  The repurchases
will be made  from  time to time in  open-market  transactions,  subject  to the
availability of stock.

         The Company intends to hold the shares  repurchased as treasury shares.
The Company may utilize  such shares to fund any stock  benefit or  compensation
plan or for any other  purpose that the Board of Directors of the Company  deems
advisable in compliance with applicable law.

         The  Company  became the  holding  company  for the Bank in April 1998,
following its initial  public  offering at the time of the conversion of Quitman
Federal Savings Bank from the mutual to stock form.

         Quitman Federal Savings Bank is a federally chartered savings bank that
conducts  its business in Brooks  County,  Georgia from our location in Quitman.
The Bank's  deposits  are insured up to the maximum  legal amount by the Federal
Deposit Insurance Corporation ("FDIC").