Independence Federal Announces Receipt of OTS Approval for New Director; Cure of Nasdaq Audit Committee Deficiency.

WASHINGTON -- Independence Federal Savings Bank (the "Bank") (Nasdaq:IFSB) announced today that, the Office of Thrift Supervision (the "OTS") has approved the Bank's appointment of Arturo Brillembourg to the Board of Directors and that the Board has appointed Mr. Brillembourg and Chairman Elliott S. Hall to its Audit Committee in accordance with the Bank's bylaws.

The Bank previously announced that it received a Nasdaq Staff Deficiency Letter on January 23, 2007, indicating that the Company fails to comply with the Nasdaq audit committee requirements for continued listing set forth in the Nasdaq Marketplace Rule 4350(d)(2)(A), which requires each listed company to have a minimum of three members on its audit committee. Pursuant to Marketplace Rule 4350(d)(4), Nasdaq provides the Bank with a cure period to regain compliance until (i) the earlier of a company's next annual shareholders' meeting or January 4, 2008, or (ii) if the Bank's next annual shareholder's meeting is held before July 3, 2007, then no later than July 3, 2007.

With the Board's appointment of Messrs. Brillembourg and Hall to the Bank's Audit Committee, the Bank has become compliant with the Nasdaq audit committee requirements for continued listing set forth in the Nasdaq Marketplace Rule 4350.

About Independence Federal Savings Bank

Independence Federal Savings Bank was chartered in 1968. Independence Federal became a publicly traded company in 1985. As of December 31, 2006, Independence Federal had approximately $160.7 million in total assets and approximately $12.5 million of total stockholders' equity. For more information about Independence Federal Savings Bank, please visit http://www.ifsb.com.

This press release, as well as other written communications made from time to time by the Bank and oral communications made from time to time by authorized officers of the Bank, may contain statements relating to the future results of the Bank (including certain projections and business trends) that are considered "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995 (the PSLRA). Such forward-looking statements may be identified by the use of such words as "believe," "expect," "anticipate," "should," "planned," "estimated," "intend" and "potential." For these statements, the Bank claims the protection of the safe harbor for forward-looking statements contained in the PSLRA.

The Bank cautions you that a number of important factors could cause actual results to differ materially from those currently anticipated in any forward-looking statement. Such factors include, but are not limited to: prevailing economic and geopolitical conditions; changes in interest rates, loan demand, real estate values and competition; changes in accounting principles, policies, and guidelines; changes in any applicable law, rule, regulation or practice with respect to tax or legal issues; and other economic, competitive, governmental, regulatory and technological factors affecting the Bank's operations, pricing, products and services and other factors that may be described in the Bank's annual report on Form 10-KSB and quarterly reports on Form 10-QSB as filed with the Office of Thrift Supervision. The forward-looking statements are made as of the date of this release, and, except as may be required by applicable law or regulation, the Bank assumes no obligation to update the forward-looking statements or to update the reasons why actual results could differ from those projected in the forward-looking statements.