EXHIBIT 99.1

                                 PRESS RELEASE



                              FOR IMMEDIATE RELEASE

For Additional Information Contact:
K. M. Hoveland, President and Chief Executive Officer
(626) 339-9663

                       K-FED BANCORP 2ND QUARTER EARNINGS

Covina, California     January 31, 2005

        K-Fed Bancorp announced continued growth in net income of $2.4 million
for the six months ended December 31, 2004 with earnings per basic and diluted
share of $0.17. This is an increase of $1 million, or 73.9%, over the net income
of $1.4 million for the six months ended December 31, 2003. No earnings per
share information is available for this period last year as the Company's
initial public offering closed on March 30, 2004.

        "Our growth in net income demonstrates that although we are new to the
public arena, our fifty years of history in the financial industry provides the
background to enhance our stockholders' investment" stated Kay Hoveland,
President and CEO. "With the recent addition of the Panorama City branch, we now
have five locations and over 30 ATMs for the convenience of our accountholders"
she added.

        Loans outstanding as of December 31, 2004, reached a record $504.3
million with the majority secured by single family residential and multi-family
real estate. Non performing assets remain low at 0.02%. Deposits totaled $465.2
million, equity totaled $91.7 million, while total assets to reached $609.2
million at December 31, 2004.

        "Our strategy is to continue to provide excellent service, increased
convenience, and maintain strong asset quality" Hoveland said.

        K-Fed Bancorp's sole subsidiary is Kaiser Federal Bank which was
originally chartered in 1953 as a federal credit union, converted to a federally
chartered mutual savings association in 1999 and reorganized into a federally
chartered mutual holding company form of organization in 2003. The bank provides
retail and commercial banking services to individuals and business customers
throughout California.

K-Fed Bancorp stock trades on NASDAQ under the KFED symbol.
Visit WWW.K-FED.COM or WWW.KAISERFEDERAL.COM to learn more.


        Statements contained in this news release that are not historical facts
may constitute forward-looking statements (within the meaning of Section 21E of
the Securities Exchange Act of 1934, as amended), which involve significant
risks and uncertainties. The Company intends such forward-looking statements to
be covered by the safe harbor provisions for forward-looking statements
contained in the Private Securities Litigation Reform Act of 1995, and is
including this statement for purposes of invoking these safe harbor provisions.
The Company's ability to predict results or the actual effect of future plans or
strategies is inherently uncertain. Factors which could have a material adverse
effect on the operations and future prospects of the Company and Kaiser Federal
Bank include, but are not limited to, changes in interest rates, general
economic conditions, legislative/regulatory changes, monetary and fiscal
policies of the U.S. Government, including the U.S. Treasury and the Federal
Reserve Board, the quality or composition of the Company's loan or investment
portfolios, demand for loan products, deposit flows, competition, demand for
financial services in the Company's market area, the possible short-term
dilutive effect of potential acquisitions and accounting principles, policies
and guidelines. These risks and uncertainties should be considered in evaluating
forward looking statements and undue reliance should not be placed on such
statements.