PRESS RELEASE

Wells Financial Corp.                        Contact:   Lonnie R. Trasamar
Wells Federal Bank                                      President and
53 First Street, S.W.                                   Chief Executive Officer
Wells, Minnesota 56097                                  (507) 553-3151

                                                        For Immediate Release
                                                        October 29, 2004

                              WELLS FINANCIAL CORP.
           ANNOUNCES EXTENSION OF MODIFIED DUTCH AUCTION TENDER OFFER

         WELLS,  MINNESOTA,  October  29,  2004 -  Wells  Financial  Corp.  (the
"Company")  (Nasdaq  National  Market  "WEFC")  President  and  Chief  Executive
Officer,  Mr. Lonnie R. Trasamar,  today announced that the Company has extended
the expiration  date of its modified Dutch auction issuer tender offer for up to
150,000 shares of its common stock  previously  announced on September 28, 2004,
until 5:00 p.m., New York City time, on Friday, November 19, 2004. The Company's
offer was  previously  scheduled  to expire at 5:00  p.m.,  New York City  time,
today. To date,  approximately 171,000 shares of common stock have been tendered
and deposited in the offer. It is likely,  therefore, that non-odd -lott holders
will be subject to  proration,  unless  tenders  already  made are  subsequently
withdrawn,  and  additional  new  tenders  are  not  received,  before  the  new
expiration date of the offer. The terms of the offer remain the same.

         A  Supplement  to the  Company's  Offer  to  Purchase  for  the  offer,
containing additional information regarding the offer, will be mailed shortly to
all  stockholders of the Company.  Stockholders  will also be able to obtain the
Supplement  and  other  related  materials  for  free at the  SEC's  website  at
www.sec.gov.  Persons  with  questions  regarding  the  offer and  requests  for
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documentation should be made to the Information Agent for the offer, D.F. King &
Co., Inc., at (800) 347-4750.

         NEITHER THE COMPANY NOR ITS BOARD OF DIRECTORS MAKES ANY RECOMMENDATION
TO ANY  STOCKHOLDER AS TO WHETHER TO TENDER OR REFRAIN FROM TENDERING ANY OR ALL
OF SUCH  STOCKHOLDER'S  SHARES IN THE OFFER AND HAS NOT AUTHORIZED ANY PERSON TO
MAKE ANY SUCH RECOMMENDATION.

         Wells  Financial  Corp. is the holding company of Wells Federal Bank, a
federally chartered savings bank headquartered in Wells,  Minnesota.  The Bank's
deposits are  federally  insured by the Federal  Deposit  Insurance  Corporation
("FDIC").

         The  foregoing  material  may contain  forward-looking  statements.  We
caution that such  statements  may be subject to a number of  uncertainties  and
actual results could differ materially and, therefore,  readers should not place
undue reliance on any forward-looking statements. Wells Financial Corp. does not
undertake,  and specifically  disclaims,  any obligation to publicly release the
results of any revisions that may be made to any  forward-looking  statements to
reflect the occurrence of anticipated or  unanticipated  events or circumstances
after the date of such statements.