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 - August 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 an $.11 (eleven cents) per share cash dividend on the common
  stock of the Corporation payable on September 24, 2004 to the stockholders
  of record at the close of business on September 9, 2004.

  Larry J. Brandt, President/CEO of the Corporation, stated, "This will be
  our 31st consecutive cash dividend and we are pleased to announce an
  increase in the dividend of 10% from ten cents to eleven cents per share.
  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
  June 30, 2004, the Corporation had total assets of $712.6 million, total
  liabilities of $638.1 million and stockholders' equity of $74.6 million.





















                                    1