HMN Financial, Inc. Declares Dividend and Announces Election Results

ROCHESTER, Minn.--(Business Wire)--
HMN Financial, Inc. (HMN) (Nasdaq:HMNF) today announced that it
will pay a regular quarterly dividend of 25 cents per share payable on
June 6, 2008 to stockholders of record on May 16, 2008.

The Board also announced the re-election of Directors Allan
DeBoer, Timothy Geisler and Karen Himle.

HMN Financial, Inc. and Home Federal are headquartered in
Rochester, Minnesota. Home Federal operates ten full service offices
in Minnesota located in Albert Lea, Austin, Eagan, La Crescent,
Rochester, Spring Valley and Winona, Minnesota and two full service
offices located in Marshalltown and Toledo, Iowa. Home Federal also
operates loan origination offices in Sartell and Rochester, Minnesota.
Home Federal Private Banking also operates branches in Edina and
Rochester, Minnesota.

HMN Financial, Inc.
Michael McNeil, 507-535-1202
President

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