Exhibit 99.1
                         STATEFED FINANCIAL CORPORATION
                             13523 UNIVERSITY AVENUE
                                CLIVE, IOWA 50325


FOR MORE INFORMATION                                 FOR IMMEDIATE RELEASE
     Contact Andra K. Black                          Date  June 6, 2003
     Executive Vice President & CFO
     at (515) 223-8484


                         STATEFED FINANCIAL CORPORATION
                             DECLARES CASH DIVIDEND


     DES MOINES, IOWA - StateFed Financial Corporation, parent corporation of
State Federal Savings and Loan Association of Des Moines, announced today that
the Corporation will pay a regular cash dividend of $.10 (10 cents) per share
for the 4th quarter of the 2003 fiscal year. The dividend will be payable on
July 3, 2003 to shareholders of record on June 30, 2003.

     State Federal serves central Iowa through its three offices located in Des
Moines and Clive, Iowa. At June 6, 2003, State Federal exceeded all applicable
regulatory capital requirements on a fully-phased in basis.

     The Corporation had $100.7 million in assets and $14.2 million in
stockholders' equity as of March 31, 2003. The Corporation's stock trades on the
NASDAQ System under the symbol "SFFC".

     When used in this press release or other public shareholder communications,
or in oral statements made with the approval of an authorized executive officer,
the words or phrases "will likely result," "are expected to," "will continue,"
"is anticipated," "estimate," "project," "significantly" or similar expressions
are intended to identify "forward-looking statements" within the meaning of the
Private Securities Litigation Reform Act of 1995. The Company wishes to caution
readers not to place undue reliance on any forward-looking statements, which
speak only as of the date made, and to advise readers that various factors
including regional and national economic conditions, changes in levels of market
interest rates, credit risks of lending activities and competitive and
regulatory factors could affect the Bank's financial performance and could cause
the Company's actual results for future periods to differ materially from those
anticipated or projected.

     The Company does not undertake, and specifically disclaims, any obligations
to publicly release the result of any revisions, which may be made to any
forward-looking statements to reflect the occurrence of anticipated events or
circumstances after the date of such statements.