Bank Mutual Corporation Commences Resolicitation.

Business Editors

MILWAUKEE--(BUSINESS WIRE)--Oct. 3, 2003

Bank Mutual Corporation (NASDAQ:BKMU), the holding company for Bank Mutual, announced today that it is commencing its previously announced resolicitation of orders for its common stock. The resolicitation is being conducted as a result of the increase in the appraisal of the Company in connection with the Company's pending conversion to a fully shareholder-owned company.

As previously announced, under the new appraisal, the total valuation of the Company is between approximately $505 million and $683 million, or up to $786 million at the adjusted maximum of the range. As a result, the total number of new shares to be sold pursuant to the resolicitation stock offering is 26,392,500 at the minimum, 35,707,500 at the maximum and 41,063,625 at the adjusted maximum of the offering range. The price remains $10.00 per share. In addition, based upon these numbers, at these levels of the offering range, the exchange ratios for current Bank Mutual Corporation public shareholders would be approximately 2.3579, 3.1901 and 3.6686 new shares, respectively, for each outstanding share of Bank Mutual Corporation common stock.

This resolicitation of orders is directed to the persons who subscribed to purchase shares in the Company's original stock offering period which expired on September 5, 2003, and only those persons are expected to have the opportunity to subscribe for shares. A prospectus supplement, with a supplemental order form, will be mailed shortly to those persons, and the resolicitation period will end at noon on October 20, 2003. Bank Mutual has already issued and mailed checks to refund monies received, and canceled authorized withdrawals from Bank Mutual depository accounts, in the original stock offering period; orders placed during that period have been canceled in accordance with regulatory requirements. Any persons being resolicited who wish to purchase shares will need to properly complete and return a supplemental order form, with payment, as described in the prospectus supplement and supplemental order form.

Although the Company has received Office of Thrift Supervision approval to conduct this resolicitation offering, completion of the transaction remains subject to final OTS approval. Trading in the shares of common stock to be issued in the offering will not begin, and the related share exchange will not occur, until the transactions are formally completed and the new shares are issued. In the interim, Bank Mutual Corporation's existing common stock will continue to trade on The NASDAQ Stock Market(R) under the symbol "BKMU".

The Company and Bank Mutual are headquartered in the Milwaukee suburb of Brown Deer, Wisconsin. The Company is the fifth largest banking institution headquartered in Wisconsin, with year end assets of $2.8 billion. Its subsidiary bank, Bank Mutual, operates 69 offices in the state of Wisconsin and one office in Minnesota.

The offering is made only by means of a prospectus and prospectus supplement, in accordance with federal law and applicable state securities laws; this press release shall not constitute an offer to sell, or the solicitation of an offer to buy, any securities. We cannot assure that we will accept any particular order, as a result of subscription priorities or otherwise.

Cautionary Statements

The final exchange ratio for existing Bank Mutual Corporation shareholders will depend upon the number of shares which are sold in the offering and we cannot assure any particular exchange ratio.

The discussions in this press release which are not historical statements contain forward-looking statements that involve risk and uncertainties. Statements which are not historical statements include those in the future tense or which use terms such as "believe," "expect," and "anticipate." Actual future results could differ in important and material ways from those discussed. Many factors could cause or contribute to such differences. In particular, completion of the various transactions is subject to a number of conditions, including those described above. Therefore, as with any transaction, completion cannot be assured. In addition, the Company's periodic filings with the Securities and Exchange Commission discuss a number of other factors which may affect its future operations generally and in particular its ability to use additional capital. These factors include changing interest rates, changes in demand for loans or other services, competition from other institutions, the results of our lending activities and loan loss experience, general economic and political developments, and other factors discussed in those filings. The statements made herein are only made as of the date of this press release and the Company undertakes no obligations to publicly update such statements to reflect subsequent events or circumstances.