FMSB First Mutual Bancshares (MM)

First Mutual Bancshares, Inc. (Nasdaq:FMSB) announced today the company's inclusion in the KBW Honor Roll for the third consecutive year. Keefe, Bruyette & Woods, a New York investment banking firm specializing in banking and financial services, recognized only 40 companies nationally, including First Mutual, for consistent earnings per share growth over the last decade. "Maintaining a spot on KBW's prestigious Honor Roll validates our commitment to sound banking practices and generating shareholder wealth," stated John Valaas, President and CEO. "Our presentation at their Community Bank Investor Conference next month in New York will focus on the contributing factors that make First Mutual such a high-performing institution." Valaas will be joined by Roger Mandery, EVP and CFO, at the Keefe, Bruyette & Woods Seventh Annual Community Bank Investor Conference. Their presentation will begin at 9:30 am EDT (6:30 am PDT) on Wednesday, August 2, 2006. The presentation may be heard at either www.firstmutual.com or www.kbw.com. Last week, First Mutual reported its 55th consecutive quarter of year-over-year earnings growth, with second quarter diluted earnings per share rising 11% from the same period in 2005. First Mutual's consistent performance has garnered attention from a number of sources. In addition to three consecutive years on Keefe, Bruyette & Woods' Honor Roll, U.S. Banker magazine ranked First Mutual #34 in the Top 100 Publicly Traded Mid-Tier Banks in August 2005, based on its three-year return on equity. First Mutual Bancshares, Inc. is the parent company of First Mutual Bank, an independent, community-based bank that operates 12 full-service banking centers in the Puget Sound area and a sales finance office in Jacksonville, Florida. www.firstmutual.com