Independence Federal Announces Change in Composition to its Board of Directors

Business Wire, Oct 11, 2006

WASHINGTON -- Independence Federal Savings Bank ("Independence Federal" or the "Bank") (Nasdaq:IFSB) previously disclosed in a Current Report on Form 8-K filed on September 25, 2006 that Mr. Michael J. Cobb, who was both the audit committee financial expert, as well as one of three members of the Bank's audit committee, had resigned from the Bank's Board of Directors. The Bank also provided notice of Mr. Cobb's resignation to The Nasdaq Stock Market, Inc. ("Nasdaq"), on September 25, 2006, that the Bank was no longer in compliance with the audit committee requirements set forth in Nasdaq Stock Market Rule 4350 for continued listing and indicated that it would rely upon the cure period in Nasdaq Stock Market Rule 4350(d)(4)(B) to fill the vacancy by the earlier of the Bank's next annual meeting of shareholders or September 27, 2007, provided that if the next annual shareholders' meeting is held before March 19, 2007, then by such March 19th date. In response, Nasdaq provided the Bank with an automatic notification, dated October 5, 2006, confirming the foregoing.

E. Leroy Morris, the Interim President and Chief Executive Officer of the Bank, stated that "We expect that we will find a qualified candidate to fill the vacancy well before the end of the Nasdaq cure period."

About Independence Federal Savings Bank

Independence Federal Savings Bank was chartered in 1968. Independence Federal became a public company in 1985. As of June 30, 2006, Independence Federal had approximately $160.9 million in total assets and $12.4 million of total stockholders' equity. For more information about Independence Federal Savings Bank, please visit http://www.ifsb.com.

This press release, as well as other written communications made from time to time by the Bank and oral communications made from time to time by authorized officers of the Bank, may contain statements relating to the future results of the Bank (including certain projections and business trends) that are considered "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995 (the PSLRA). Such forward-looking statements may be identified by the use of such words as "believe," "expect," "anticipate," "should," "planned," "estimated," "intend" and "potential." For these statements, the Bank claims the protection of the safe harbor for forward-looking statements contained in the PSLRA.

The Bank cautions you that a number of important factors could cause actual results to differ materially from those currently anticipated in any forward-looking statement. Such factors include, but are not limited to: prevailing economic and geopolitical conditions; changes in interest rates, loan demand, real estate values and competition; changes in accounting principles, policies, and guidelines; changes in any applicable law, rule, regulation or practice with respect to tax or legal issues; and other economic, competitive, governmental, regulatory and technological factors affecting the Bank's operations, pricing, products and services and other factors that may be described in the Bank's annual report on Form 10-KSB and quarterly reports on Form 10-QSB as filed with the Office of Thrift Supervision. The forward-looking statements are made as of the date of this release, and, except as may be required by applicable law or regulation, the Bank assumes no obligation to update the forward-looking statements or to update the reasons why actual results could differ from those projected in the forward-looking statements.