Bedford Bancshares Inc. Announces Cash Dividend.

BEDFORD, Va.--(BUSINESS WIRE)--June 16, 1999--

Harold K. Neal, president and chief executive officer of Bedford Bancshares Inc. (Nasdaq:BFSB), Bedford, Va., the holding company of Bedford Federal Savings Bank, announced today that the corporation's board of directors declared a quarterly cash dividend of $.09 per share payable July 14, 1999 to stockholders of record on June 30, 1999.

The corporation has 2,244,030 shares issued and outstanding. Neal indicated that the cash dividend is being paid as a result of continued profitability of the corporation and its wholly owned subsidiary, Bedford Federal Savings Bank.

Bedford Federal Savings Bank is a federally chartered stock savings bank headquartered in Bedford, Va. The Bank has its main office in Bedford and two branch offices located in Bedford County, Va. The Bank's deposits are federally insured up to the legal limit by the Savings Association Insurance Fund, as administered by the Federal Deposit Insurance Corporation ("FDIC"). The Bank is a community-oriented, full service retail savings bank offering traditional mortgage and consumer loan products. The corporation's common stock is traded on the Nasdaq National Market under the symbol "BFSB".