Pulaski Financial (PULB)

EXPANDING PULASKI’S PRESENCE IN ST. LOUIS

In keeping with its objective to be the preferred community bank in St. Louis, the Company sold its Kansas City retail branch, which was its only bank location outside of the St. Louis market, in February 2006. The sale resulted in an after-tax gain of $1.5 million and allowed us to focus on serving the needs of the St. Louis community.

In 2003, the Company added commercial banking operations. At the time, the Company had a total of $35.2 million in checking account balances, which are its lowest-cost deposit type. Three years later, the Company has increased checking account balances 162% to $92.3 million, due primarily to growth in commercial deposits. In addition, over 50% of the Company’s loan portfolio growth has been generated by commercial loans. We believe growth in commercial banking relationships is essential for the

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Company’s continued growth in the St. Louis market and that our prospects will be enhanced by our increased presence in the St. Louis business community.

Today, the Bank has nine full-service locations and plans to open two to three new locations in the central corridor of metropolitan St. Louis within the next two years. In September 2004, the Bank had six full-service locations, with only the main bank in Creve Coeur positioned to serve small to medium sized business customers. Including Chesterfield Valley which was opened in August 2005, the two Central West End Bank locations acquired in March 2006 and three planned locations, seven of twelve potential full-service offices will be convenient to the commercial and financial centers within St. Louis.