Bank of South Wayne to Join F&M Bancorporation.

KAUKAUNA, Wis.--(BUSINESS WIRE)--Oct. 6, 1997--F&M Bancorporation (NASDAQ: FMBK) and the Bank of South Wayne today announced execution of a Definitive Agreement providing for the affiliation of the Bank of South Wayne with F&M Bancorporation Inc. ("F&M").

This agreement was announced jointly by Gail E. Janssen, chairman of the board for F&M, and Ervin W. Johnson, president of the Bank of South Wayne.

Janssen stated, "We are looking forward to this continued expansion in southwestern Wisconsin. Our attention to the needs of our customers and the communities we serve has proven successful in our current southwestern markets. With the strength of the employees of the Bank of South Wayne, we plan to extend this same quality service to the residents of the South Wayne area."

Johnson stated, "We are excited about joining F&M Bancorporation. They have successful experience in working with banks our size. We believe F&M's community oriented focus will continue to meet the needs of our customers. We expect that F&M's philosophy of keeping decision making local will mean big benefits to our community."

This transaction will result in shareholders of the Bank of South Wayne receiving F&M stock in accordance with the Definitive Agreement. This transaction is subject to regulatory approvals and other customary conditions, with an estimated completion date in January 1998.

The Bank of South Wayne has approximately $20 million in assets, with one location. This bank will join with F&M Bank-Darlington, N.A., with the combined bank serving customers from three locations in southwestern Wisconsin, Darlington, Hazel Green and South Wayne.

F&M Bancorporation is a multi-bank holding company located in Kaukauna, Wis. F&M stock is traded on the NASDAQ National Market System, under the symbol FMBK. With its pending acquisition of Cannon Valley Bank in Dundas, Minn., F&M will serve customers out of 64 full service bank locations throughout Wisconsin and Minnesota, with assets of over $1.6 billion. -0-

Discussions in this release are not statements of historical fact (including statements which include terms such as "will," "believe" and "expect") are forward-looking statements that involve risks and uncertainties, and the company's actual future results could materially differ from those discussed. Factors that could cause or contribute to such differences include, but are not limited to, the company's future lending and collections experience, the effects of acquisitions, competition from other institutions, changes in the banking industry and its regulation, needs for technological change, and other factors, including those which are discussed in the company's filings with the Securities and Exchange Commission.

CONTACT: F&M Bancorporation, Inc.

Janet M. Lakso, 920/766-1717

www.fmbanks.com