First Federal Bancshares of Arkansas Inc.

First Federal Bancshares of Arkansas Inc. is listed on NASDAQ (FFBH). First Federal Bancshares of Arkansas, Inc. First Federal Bancshares of Arkansas, Inc. is a Texas corporation organized in January 1996 by First Federal Bank of Arkansas, FA (First Federal or the Bank) for the purpose of becoming a unitary holding company of the Bank. The only significant assets of the Company are the capital stock of the Bank, the Company's loan to the Employee Stock Ownership Plan (ESOP), and cash. The business and management of the Company consists of the business and management of the Bank. The Company does not presently own or lease any property, but instead uses the premises, equipment and furniture of the Bank. At the present time, the Company does not employ any persons other than officers of the Bank, and the Company utilizes the support staff of the Bank from time to time. Additional employees will be hired as appropriate to the extent the Company expands or changes its business in the future.

First Federal Bancshares Inc.

First Federal Bancshares Inc. is listed on NASDAQ (FFBI). First Federal Bancshares, Inc., was organized as a Delaware business corporation in 2000 to be the savings and loan holding company for First Federal Bank (also referred to as the Bank or First Federal) in connection with the conversion of First Federal from mutual to stock form of ownership. The conversion was completed on September 27, 2000. First Federal Bancshares has no significant assets, other than all of the outstanding shares of First Federal, and no significant liabilities. Accordingly, the information set forth in this report, including the consolidated financial statements and related financial data, relates primarily to First Federal.

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