Bank Mutual Corporation Files Registration Statement with SEC.

Business Editors

MILWAUKEE--(BUSINESS WIRE)--May 30, 2003

Bank Mutual Corporation (NASDAQ:BKMU) the holding company for Bank Mutual, announced today that it filed a registration statement with the Securities and Exchange Commission relating to the sale of between a minimum of 22,950,000 shares and a maximum of 31,050,000 shares of common stock (subject to a 15% increase to 35,707,500 shares) in a subscription and community offering. The offering will be conducted in connection with the conversion of Bank Mutual Bancorp, MHC in which the mutual form of organization will cease. Bank Mutual Bancorp, MHC is also filing an application with the Office of Thrift Supervision in connection with its conversion.

The shares offered represent the MHC's current 52.3% ownership in Bank Mutual Corporation, the stock holding company of Bank Mutual. The shares of common stock will be offered for sale at $10.00 per share. Ryan Beck & Co., Inc. will serve as marketing agent with regard to the offering.

In addition, at the conclusion of the conversion, the public shareholders of Bank Mutual Corporation will have their existing shares of common stock exchanged for new shares of Bank Mutual Corporation common stock. Based upon an independent appraisal performed by RP Financial, LP, which will be updated prior to closing the conversion, each share of Bank Mutual Corporation would be exchanged for a number of new shares which will depend upon the total number of shares sold in the offering. The exact exchange ratio will be computed so that shareholders retain the same percentage interest in Bank Mutual Corporation that they hold immediately prior to the conversion. By means of illustration, and assuming no change in the appraisal, an existing share of Bank Mutual Corporation stock would be expected to be converted into 2.0504 shares, 2.4122 shares, 2.7740 shares or 3.1901 shares, respectively, if the offering is completed at the offering's minimum, midpoint, maximum or 15% above the maximum.

In addition to regulatory approval, the members of Bank Mutual Bancorp, MHC and the shareholders of Bank Mutual Corporation must approve the transactions. Proxy materials setting forth detailed information relating to the conversion and offering will be sent to the members of the MHC and shareholders of Bank Mutual Corporation for their consideration. The offering and the exchange will be made only by means of a prospectus in accordance with federal law and all applicable state securities laws; this press release shall not constitute an offer to sell or the solicitation of an offer to buy any securities.

The conversion and the offering are expected to be completed in the third quarter of 2003, subject to regulatory reviews.

Bank Mutual Corporation common stock is traded on The NASDAQ Stock Market(R) under the symbol "BKMU". Bank Mutual Corporation is the fifth largest banking institution headquartered in Wisconsin, with assets of $2.8 billion at March 31, 2003. Its subsidiary bank, Bank Mutual, operates 69 offices in the state of Wisconsin and one office in Minnesota.

A registration statement relating to these securities has been filed with the Securities and Exchange Commission but has not yet become effective. These securities may not be sold nor may offers to buy be accepted prior to the time the registration statement becomes effective. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of these securities in any State in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such State.

The shares of common stock are not savings accounts or savings deposits, may lose value and are not insured by the Federal Deposit Insurance Corporation or any other government agency.

Cautionary Statements

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 discussed above is subject to a number of conditions, including those described above. Therefore, as with any transaction, completion cannot be assured. The independent appraisal is subject to reduction and change. The exact exchange ratio will depend upon the final appraisal and the number of shares sold in the offering. The final exchange ratio will not necessarily be the same as any of the examples presented, and may be lower if the appraisal is lowered. In addition, Bank Mutual Corporation's periodic filings with the Securities and Exchange Commission and the registration statement discuss a number of other factors which may affect its future operations generally. 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.