Security Federal Corporation Announces Increase in Cash Dividend

Business Wire, April 29, 2008

AIKEN, S.C. -- Security Federal Corporation, holding company of Security Federal Bank, announced a fourteen percent (14%) increase in the quarterly dividend from $.07 to $.08 per share. This dividend will be paid on or about June 15, 2008 to shareholders of record as of May 31, 2008.

This is the seventieth consecutive quarterly dividend to shareholders since the Bank's conversion in October of 1987 from a mutual to a stock form of ownership. The dividend was declared as a result of the Bank's continued profitability.

In March 2008, Security Federal Bank relocated its Clearwater Branch to a more prominent location on Jefferson Davis Highway. This location now offers the convenience of an ATM.

Security Federal Bank has thirteen full service branch locations in Aiken, Clearwater, Graniteville, Langley, Lexington, North Augusta, Wagener, Columbia and West Columbia, South Carolina and Evans, Georgia. Additional financial services are provided by three of the Bank's wholly owned subsidiaries, Security Federal Insurance, Inc., Security Federal Investments, Inc., and Security Federal Trust, Inc.

Security Federal Corporation common stock is traded on the Over-the-Counter Bulletin Board under the symbol SFDL.