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                      [CITFED BANCORP, INC. LETTERHEAD]


FOR IMMEDIATE RELEASE
October 17, 1997

CITFED BANCORP, INC. DECLARES THREE-FOR-TWO STOCK SPLIT
AND ANNOUNCES SECOND QUARTER CASH DIVIDEND

Dayton, Ohio--CitFed Bancorp, Inc. (NASDAQ/NNM:CTZN) Board of Directors today
approved a three-for-two stock split in the form of a stock dividend.  CitFed's
regular quarterly cash dividend of  nine cents per share was also declared on
the post-split shares.  The Corporation's cash dividend will increase by 50
percent.  The announcement was made by Chairman and President Jerry L. Kirby.

         The stock dividend will be paid November 28, 1997 to stockholders of
record as of  November 14, 1997.  The stock dividend will pay one common share
of CitFed Bancorp stock for every two shares of common stock held on the record
date.  Stockholders will receive cash in lieu of fractional shares.  The
regular quarterly cash dividend will be based on all outstanding common shares
including the stock dividend and will be paid on December 1, 1997 to
stockholders of record on November 14, 1997.

         "Record earnings performance, improved operating efficiencies and
enhancements to product lines generating increased non-interest income, all
have  contributed to the financial success reported by the Corporation.  The
Board of Directors has declared this stock dividend in recognition of this
performance.  Combined with our increased cash dividends, these actions clearly
demonstrate our intent to enhance shareholder value,"  stated Kirby.

         CitFed Bancorp, Inc. plans to announce earnings for the second quarter
of fiscal 1997 on October 28.  

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         CitFed Bancorp, Inc. is the holding company of Citizens Federal Bank,
F.S.B., the largest financial institution headquartered in Dayton with assets
of $3.3 billion.  Citizens Federal operates 35 offices in a seven-county area.
CitFed Mortgage Corporation of America, the wholly owned subsidiary of Citizens
Federal has loan origination offices in Ohio, Indiana, Kentucky, Virginia and
North Carolina.
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