Jefferson Bancshares, Inc. Declares Quarterly Dividend

• Press Release
• Source: Jefferson Bancshares, Inc.
• On Monday November 24, 2008, 11:54 am EST

MORRISTOWN, Tenn., Nov. 24, 2008 (GLOBE NEWSWIRE) -- Anderson L. Smith, President and Chief Executive Officer of Jefferson Bancshares, Inc. (NasdaqGM:JFBI - News), announced today that the Company's Board of Directors has declared a cash dividend of $0.06 cents per share of common stock. The dividend will be payable to stockholders of record as of December 31, 2008 and will be paid on January 9, 2009.

Jefferson Bancshares, Inc. is the holding company for Jefferson Federal Bank, a Tennessee-chartered savings bank headquartered in Morristown, Tennessee. Jefferson Federal Bank is a community-oriented financial institution offering traditional financial services with offices in Hamblen, Knox, Sullivan and Washington Counties, Tennessee. The Company's stock is listed on the NASDAQ Global Market under the symbol ``JFBI.'' More information about the Company and Jefferson Federal Bank can be found online at http://www.jeffersonfederal.com.

The Jefferson Bancshares, Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=3655

          Jefferson Bancshares, Inc.
          Anderson L. Smith, President and CEO 
            (423) 586-8421
          Jane P. Hutton, CFO 
            (423) 586-8421