Timberland Bancorp Increases Quarterly Cash Dividend 10% to $0.11 per Share

HOQUIAM, WA, Jan 22 (MARKET WIRE) --
The Board of Directors of Timberland Bancorp, Inc. (NASDAQ: TSBK) has increased
its quarterly cash dividend 10% to $0.11 per share. The dividend will be paid
on February 22, 2008 to shareholders of record February 8, 2008. This payment
will be
the 40th consecutive quarterly cash dividend that Timberland has paid on its
common
stock.

"We invite our shareholders and interested investors to join us this
afternoon
for our annual meeting," said Michael Sand, President and CEO. The meeting
will be held at the Hoquiam Timberland Library at 1:00 p.m. Pacific Time. For
investors unable to attend the meeting, the annual review slide presentation
will be posted on the investor relations section at www.timberlandbank.com

Timberland Bancorp, Inc. is the holding company for Timberland Bank, a
western Washington-based financial institution since 1915. The Bank operates
branches in the state of Washington in Hoquiam, Aberdeen, Ocean Shores,
Montesano, Elma, Lacey, Tumwater, Olympia, Yelm, Puyallup, Edgewood, Tacoma,
Bethel
Station (Spanaway), Gig Harbor, Silverdale, Poulsbo, Auburn, Winlock and Toledo.

Timberland Bancorp, Inc. stock trades on the NASDAQ global market under the
symbol "TSBK."

For further information contact:
Michael R. Sand
President & CEO
Dean J. Brydon
CFO
At (360) 533-4747

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