CORPORATE PROFILE

Northern States Financial Corporation is a bank holding company for the Bank of Waukegan, which serves portions of northeastern Illinois and southeastern Wisconsin. As a full service commercial bank, the Bank attracts deposits; makes commercial, real estate and consumer loans; and operates mortgage banking and trust businesses.

Much of the Company’s performance over the years is attributable to its location in Lake County, Illinois. Lake County is the wealthiest county in the state and is among the fastest growing in population, construction, retail activity and corporate headquarter sites for suburban Chicago. Branch expansions and new product introductions also have enriched the professional services that are a hallmark of the Bank.

As its market continues to grow and expand, the Company will continue its efforts to provide value to stockholders while maintaining growth and profitability. On January 5, 2004, Northern States Financial Corporation completed the acquisition of Round Lake Bankcorp, Inc., holding company for First State Bank of Round Lake that has two banking offices. This will allow us to expand and grow in our target market. Northern States will continue to provide competitively priced financial services while always stressing that “Our Most Important Customer Is You.”