For Immediate Release                                Contact: Lonnie R. Trasamar
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July 26, 2002                                                     (507) 553-3151


         Wells Financial Corp Announces Revised Second Quarter Earnings




FOR IMMEDIATE  RELEASE--Wells,  Minnesota,  July 26, 2002- Wells Financial Corp.
(Company),  (Nasdaq  National Market WEFC), the holding company of Wells Federal
Bank,  announced today that its previously  released  earnings for the three and
six-month  periods  ended  June  30,  2002,  respectively,  were  overstated  by
approximately  $128,000 or 7.7% due to the  inclusion  of certain  tax  benefits
related to the exercise of employee  stock  options.  Net earnings for the three
and six month  periods  ended  June 30,  2002,  were  $684,000  and  $1,537,000,
respectively.  The Company was recently advised by its independent auditors that
the $128,000 tax benefit  resulting  from the exercise of stock  options and the
sale  of  the  underlying   shares  should  have  been  included  in  additional
paid-in-capital, rather than a reduction in tax expense. Consequently, basic and
diluted earnings per share were $0.58 and $0.56,  respectively,  for the quarter
ended June 30, 2002 and $1.31 and $1.27, respectively,  for the six-month period
ended June 30, 2002, a difference of ($0.11) per share.

         Wells  Financial  Corp.  is  headquartered  in  Wells,  Minnesota.  Its
subsidiary  operates  full service bank offices in Wells,  Blue Earth,  Mankato,
Fairmont, North Mankato, Albert Lea, St. Peter and Owatonna, Minnesota.