EXHIBIT 99.1


FIRST                                                                   FOR
FEDERAL                                                              IMMEDIATE
BANCSHARES                                                            RELEASE
1401 Highway 62-65 North
P. O. Box 550
Harrison, AR  72601                           FOR FURTHER INFORMATION CONTACT:
                                                 Larry J. Brandt/President-CEO
                                                      Tommy Richardson/EVP-COO
                                                       Sherri Billings/EVP-CFO
                                                                  870-741-7641


              FIRST FEDERAL BANCSHARES OF ARKANSAS, INC.
                 ANNOUNCES A QUARTERLY CASH DIVIDEND


     Harrison, Arkansas - May 26, 2004 - (NASDAQ NMS:FFBH) First
     Federal Bancshares of Arkansas, Inc. (the "Corporation"), a
     unitary savings and loan holding company for First Federal
     Bank of Arkansas, FA (the "Bank") announced today that its
     Board of Directors at their meeting this morning, declared a
     $.10 (ten cents) cash dividend on the common stock of the
     Corporation payable on June 24, 2004 to the stockholders of
     record at the close of business on June 10, 2004.

     Larry J. Brandt, President/CEO of the Corporation, stated,
     "This will be our 30th consecutive cash dividend.  Our
     strong capital base and continued profitability afford us
     the opportunity to pay another consecutive quarterly cash
     dividend.  Such action demonstrates our commitment to and
     confidence in our future prospects."

     The Bank, in its 70th year, conducts business from 15 full-
     service branch locations and 24 ATMS located in Northcentral
     and Northwest Arkansas.  At March 31, 2004, the Corporation
     had total assets of $697.3 million, total liabilities of
     $621.7 million and stockholders' equity of $75.6 million.






                                    1