HMLK Hemlock Federal Financial (MM)

Hemlock Federal Financial Corporation Announces 1-for-100 Reverse Stock Split Followed by 100-for-1 Forward Stock Split OAK FOREST, Ill., June 1 /PRNewswire-FirstCall/ -- Hemlock Federal Financial Corporation (NASDAQ:HMLK) (the "Company") announced today that in connection with its previously announced tender offer and ongoing effort to go private, the Board of Directors of the Company has unanimously approved a 1-for-100 reverse stock split to be followed immediately by a 100-for-1 forward stock split. Both stock splits will be effective on June 29, 2004 for shareholders of record as of June 15, 2004. This transaction will allow the Company to terminate the registration of the Company's common stock with the Securities and Exchange Commission. Under the terms of the proposed transaction, shareholders owning fewer than 100 shares of the Company's common stock will be entitled to receive cash in an amount equal to $29.00 for each share of common stock owned immediately prior to the effective date of the reverse stock split. The closing price of the Company's common stock on May 29, 2004, the last trading day prior to the announcement of this transaction, was $28.40. However, consistent with the tender offer just completed, the Company will pay out fractional shares for shareholders holding less than 100 shares at $29.00. The Company expects to cash out approximately 8,000 shares at $29.00 per share for a total of $232,000. Shareholders owning 100 or more shares of common stock immediately prior to the effective date of the reverse stock split will continue to hold their shares. After giving effect to the forward split, these shareholders will be back where they started. Under Delaware law, this transaction is not subject to the approval of the shareholders of the Company and no vote of the shareholders will be obtained in connection with the transaction. The proposed transaction is expected to reduce the number of shareholders of record to fewer than 300, which will allow the Company to terminate its reporting obligations under federal securities laws. As a result, the common stock of the Company will no longer be eligible for trading on the Nasdaq Small Cap Market. The Company previously disclosed its intention to do this in its tender offer. About Hemlock Federal Financial Corporation Hemlock Federal Financial Corporation is a Delaware corporation. The Company is a savings and loan holding company, which has as its wholly owned subsidiary, Hemlock Federal Bank for Savings (the "Bank"). The Company is a financial intermediary engaged primarily in attracting deposits from the general public and using such deposits to originate one-to-four family residential mortgages and, to a lesser extent, multi-family, consumer and other loans primarily in its market area. The Company's revenues are derived principally from interest earned on mortgage-backed and other securities and loans as well as the sale of loans. The operations of the Company are influenced significantly by general economic conditions and by policies of financial institution regulatory agencies, including the OTS and FDIC. For more information about us, visit our website at http://www.hemlockbank.com/ . The news release contains certain statements that are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, as amended. Those statements may include statements regarding the intent, belief or current expectations of Hemlock Federal Financial Corporation (the "Company") or its officers with respect to (i) the Company's strategic plans, (ii) the policies of the Company regarding capital expenditures, dividends, financing and other matters, and (iii) industry trends affecting the Company's financial condition or results of operations. Readers of this news release are cautioned that reliance on any forward-looking statement involves risks and uncertainties. Although the Company believes that the assumptions on which the forward- looking statements contained herein are based are reasonable, any of those assumptions could prove to be inaccurate given the inherent uncertainties as to the occurrence or nonoccurrence of future events. There can be no assurance that the forward-looking statements contained in this news release will prove to be accurate. The inclusion of a forward-looking statement herein should not be regarded as a representation by the Company that the Company's objectives will be achieved. DATASOURCE: Hemlock Federal Financial Corporation CONTACT: Michael R. Stevens, President, of Hemlock Federal Financial Corporation, +1-708-687-9400 Web site: http://www.hemlockbank.com/

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