Press Release

Lake Shore Wisconsin Corporation to Acquire Hiawatha Bancshares, Inc.

SHEBOYGAN and HAGER CITY, WI, November 7, 2008 -- Lake Shore Wisconsin Corporation and Hiawatha Bancshares, Inc. today announced that they have signed a definitive agreement for lake Shore to acquire Hiawatha and its subsidiary, Hiawatha National Bank. Pending receipt of regulatory and shareholder approval, the transaction is expected to close in the first quarter of 2009.

According to Jeffery Oskey, Hiawatha's Chairman of the Board, "Hiawatha National Bank has a long history of providing safe and sound banking services to the communities of Glenwood City, Hager city and Maiden Rock. The Bank's board of directors and management recognize that in order to continue this tradition of service, additional resources will be required. We believe Lake Shore Wisconsin Corporation offers those resources."

Jeanene Meisser, Lake Shore Wisconsin Corporation's Chief Operating Officer and Controller said of the transaction, "Everyone involved with Lake Shore, including my husband Jim and I, is very excited to work with the wonderful staff at Hiawatha and look forward to providing one of a kind service to our future clients."

Lake Shore Wisconsin Corporation was formed by a group of investors in Sheboygan, Wisconsin for the purpose of acquiring an existing bank operating in Wisconsin. This transaction represents Lake Shore's first such acquisition.

Hiawatha Bancshares, Inc.is a bank holding company headquartered in Hager city, Wisconsin. Hiawatha's sole subsidiary is Hiawatha National Bank, which was formed in 1917 and operates through branch locations in Hager CIty, Glenwood City and Maiden Rock Wisconsin. As of June 30, 2008, Hiawatha National Bank had approximately $42.7 million in assets.

Eide Bailly, LLC served as financial advisor to Hiawatha Bancshares, Inc. Winthrop & Weinstein, P.A. served as Hiawatha's legal advisor. Godfrey & Kahn, S.C. served as Lake Shore's legal advisor.

CONTACT:

Jeanene V. Meisser, Chief Operating Officer and Controller, Lake Shore Wisconsin Corporation at 920-208-2206; or

John Campe, Chief Executive Officer, Hiawatha National Bank at 715-265-4211.