2008-04-15 23:56:35 -

www.ifsb.com - Independence Federal Savings Bank (the "Bank") (Nasdaq:IFSB) announced today that it has been notified by the Office of Thrift Supervision (the "OTS") that the OTS has terminated the cease and desist order under which the Bank has operated since June 2006 and the Troubled Condition Letter under which the Bank has operated since November 2003.

This action by the OTS is expected to help reduce the Bank's operating costs and allow the Bank greater operational flexibility. The Bank will remain subject to a memorandum of understanding until further notice from the OTS, which requires the Bank to take corrective action to resolve a limited number of deficiencies remaining under the cease and desist order and certain deficiencies identified in the OTS' most recent report of examination of the Bank.

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, 2007, Independence Federal had approximately $150.9 million in total assets and approximately $10.2 million of total stockholders' equity. For more information about Independence Federal Savings Bank, please visit 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; operating conditions that may be imposed on the Bank by regulatory authorities; 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.

Independence Federal Savings Bank
John A. Hall, President and CEO, 202-628-5500