Security Federal Corporation Announces Appointment of New Director

Business Wire, May 21, 2008

AIKEN, S.C. -- Security Federal Corporation (OTCBB:SFDL) ("Company"), the holding company for Security Federal Bank ("Bank"), today announced the appointment of Frank M. Thomas to the Boards of Directors of the Company and the Bank. Mr. Thomas currently serves as Executive Vice President of the Bank and as an Aiken Area Executive of the Bank. He began his career with Security Federal Bank in 1994 as a Business Development Officer and has served in positions of increasing responsibilities in his 14 years with the Bank. His most recent positions have included Senior Vice President of Commercial Lending and Senior Vice President and Aiken Area Executive of the Bank. He is a life-long resident of Aiken, South Carolina and attended Aiken public schools, the University of South Carolina at Aiken and is a graduate of the University of South Carolina with a Bachelor of Science in Business Administration. Mr. Thomas is active in the Aiken community and serves as a Board Member and Treasurer for the Greater Aiken Chamber of Commerce, Board Member and Treasurer for the University of South Carolina at Aiken Partnership Board, Board Member and Co-Chairman for the Aiken Downtown Development Association and Board Member for the Free Medical Clinic of Aiken County.

Security Federal Bank has 13 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 offered through the Bank's three wholly owned subsidiaries, Security Federal Insurance Inc., Security Federal Investments Inc., and Security Federal Trust Inc.

Forward-looking statements:

Certain matters discussed in this press release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and are made pursuant to the safe harbors of the PSLRA. Any such forward-looking statements are subject to various risks and uncertainties and are therefore qualified by Security Federal Corporation's cautionary statements contained in its filings with the Securities and Exchange Commission, including, but not limited to Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. Accordingly, these factors should be considered in evaluating forward-looking statements, and undue reliance should not be placed on such statements. The Company undertakes no responsibility to update or revise any forward-looking statements.