HMLK Hemlock Federal Financial (MM)

Hemlock Federal Financial Corporation Announces Preliminary Results of Tender Offer OAK FOREST, Ill., May 17 /PRNewswire-FirstCall/ -- Hemlock Federal Financial Corporation announced today the preliminary results of its tender offer to purchase the company's common stock, which expired on May 14, 2004. Based on a preliminary count by the depositary for the tender offer, 245,742 shares of common stock were properly tendered and not withdrawn at a price of $29.00 per share. Hemlock Federal Financial expects to purchase 219,483 shares, which represents the maximum amount the Company can buy without extending the offering, resulting in a proration factor of approximately 89.8% of the shares tendered at the $29.00 purchase price. All "odd lot" shares properly tendered at the $29.00 purchase price will be purchased before any proration is done. Of the 245,742 shares tendered, approximately 978 shares were tendered through notice of guaranteed delivery. Because the number of shares tendered at the $29.00 purchase price exceeded the number of shares Hemlock Federal Financial expects to purchase, the number of shares accepted for payment by Hemlock Federal Financial (after Hemlock Federal Financial's purchase of all of the "odd lot" shares) will be prorated based on the total number of shares properly tendered by each shareholder in accordance with the terms of the tender offer at the $29.00 purchase price. The proration factor, the number of shares to be purchased and the price per share are preliminary, are based on a substantial portion of the shares tendered through notice of guaranteed delivery being validly tendered and are subject to verification by the depositary. The final proration factor will be announced promptly following completion of the verification process. Any questions with regard to the tender offer may be directed to Keefe, Bruyette & Woods, Inc., the information agent, at (877) 298-6520 (toll free). If, after the final results are announced, the Company continues to have more than 300 registered holders, Hemlock Federal Financial intends to take other actions to reduce the number of registered holders below 300, including a potential reverse stock split and additional stock repurchases. This announcement does not constitute an offer to purchase, a solicitation of an offer to purchase or a solicitation of an offer to sell securities with respect to any debentures. The tender offer is being made solely on the terms and conditions set forth in the Offer to Purchase dated April 14, 2004, as amended and restated and the accompanying transmittal documents. For additional information regarding the tender offer, reference should be made to the Offer to Purchase and the related transmittal documents. DATASOURCE: Hemlock Federal Financial Corporation CONTACT: Maureen G. Partynski, Chairman and CEO, or Michael R. Stevens, President, +1-708-687-9400, both of Hemlock Federal Financial Corporation Web site: http://www.hemlockbank.com/

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