AUGUST 2005

QUEEN CITY FEDERAL BANK AGREES TO FRANDSEN PURCHASE

The Queen City Federal Bank board of directors has agreed to a purchase agreement from Frandsen Financial Corporation.  Located in Forest Lake, Minnesota, Frandsen is a 9- bank holding company serving 22 communities in Minnesota, North Dakota, and Wisconsin.   Pending regulatory approval, the change in ownership will be completed by October 13, 2005.

Kevin Pietrini, Queen City Federal President, explained that,  “By becoming part of the Frandsen Financial organizational, Queen City Federal will have access to a tremendous amount of financial and technological resources that will help keep us competitive for our customers today and for years to come.  We see the Frandsen purchase as a way to make a great bank even better for our customers, our employees and our community ”.

Local bank customers are unlikely to notice any difference as a result of the Frandsen purchase, said Pietrini. “Bank customers will continue to be served by our current officers and staff, and are unlikely to notice much change in their daily contact with Queen City employees." He continued, “Frandsen does offer us some of the most state-of-the-art products and services that will only help us to enhance the financial well-being of our retail and business customers.  Above all else, Frandsen and Queen City Federal share the most important goal, and that is to help ensure that we maintain our commitment to delivering quality personal service to our customers, 24 hours a day, 7 days a week .”