SCHEDULE 14A INFORMATION
 
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                              PALFED, INC.
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                (Name of Registrant as Specified In Its Charter)
 
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                                                    FOR MORE INFORMATION CALL:

                                                    PALFED, INC.
                                                    107 Chesterfield Street S.
                                                    Aiken, South Carolina  29801

                                                    John C. Troutman
                                                    President and CEO
                                                    (803) 642-1433

                                                    April 8, 1997

                                                    FOR IMMEDIATE RELEASE

                INSTITUTIONAL SHAREHOLDER SERVICES RECOMMENDS
                AGAINST MID-ATLANTIC'S PROPOSAL TO SELL PALFED

AIKEN, South Carolina, April 8, 1997 -- John C. Troutman, President and CEO 
of PALFED, Inc. ("PALFED" or the "Company") announced today that 
Institutional Shareholder Services, Inc. ("ISS"), an independent shareholder 
advisory firm, has advised PALFED's institutional shareholders which 
subscribe to their service to support PALFED management and vote against a 
shareholder proposal sponsored by Mid-Atlantic Investors ("Mid-Atlantic").

Mr. Troutman said, "We are very pleased to receive the support of ISS, whose 
evaluation of PALFED's performance and the issues raised by Mid-Atlantic's 
proposal provide the independent advice that even Mid-Atlantic surely cannot 
ignore."  Mr. Troutman noted that ISS reviews shareholder proposals on a 
case-by-case basis, taking into account company performance and other 
fundamental issues, including a strategic plan of action to enhance 
shareholder value.

The ISS report noted that PALFED "has acquired new banking offices and 
achieved technological upgrades at a reasonable cost, and that long-term 
shareholders would suffer if the Company were put in play."  The report also 
noted that shareholder returns at PALFED have increased over five years and 
have outperformed the NASDAQ Financial Stock Index by 25.5% and the S&P 500 
Index by 15.2%.

ISS, based in Bethesda, Maryland, is a leading independent advisor to several 
hundred institutional investors and provides voting recommendations for proxy 
contests, corporate governance proposals and other shareholder related issues.

PALFED, INC. is a South Carolina corporation whose principal subsidiary, 
Palmetto Federal Savings Bank of South Carolina, operates twenty-two banking 
and seven mortgage lending offices in South Carolina and one mortgage lending 
office in Georgia.  PALFED's common stock is traded in the Nasdaq National 
Market System under the symbol "PALM".