Associated to Close State Financial Acquisition Oct. 3

Associated Banc-Corp (NASDAQ:ASBC) and State Financial
Services Corporation (NASDAQ:SFSW) have amended their merger
agreement to provide for closing the transaction on Oct. 3, the
companies announced today.
   The combined company will have more than 320 branch offices and
more than 350 ATM locations throughout Wisconsin, Illinois and eastern
Minnesota.
   The conversion of State Financial's operating systems to
Associated's platform is scheduled for early November 2005.
   "Our integration planning is progressing well and our timetables
remain on track," said Paul S. Beideman, president and CEO of
Associated.

   State Financial is a $1.5 billion financial services company
operating through 29 full-service office locations in southeastern
Wisconsin and northeastern Illinois. Through its banking network,
State Financial provides commercial and retail banking products,
secondary market mortgage loan originations and investment brokerage
activities.

   Associated Banc-Corp offers a full range of traditional banking
services and a variety of other financial products and services, with
the No. 1 branch distribution position in most of its key markets.
Associated has been named a Mergent Dividend Achiever based on its
34-year history of dividend increases, is a member of the Forbes
Global 2000, and has been a leading Small Business Administration
lender for many years. More information about Associated Banc-Corp is
available at www.AssociatedBank.com.

   Certain matters discussed in this press release are
"forward-looking statements" intended to qualify for the safe harbors
from liability established by the Private Securities Litigation Reform
Act of 1995. These forward-looking statements can generally be
identified as such because the context of the statement will include
words such as "believes," "anticipates" or "expects," or words of
similar import. Such forward-looking statements are subject to certain
risks and uncertainties, which could cause actual results to differ
materially from those currently anticipated. Such risks and
uncertainties include, among others, State Financial's and
Associated's ability to complete the merger in a timely manner or at
all, the risk that the business of State Financial will not be
integrated successfully into Associated, the risk that the cost
savings from the merger may not be fully realized or may take longer
to realize than expected, and other factors discussed in the filings
of Associated and State Financial with the Securities and Exchange
Commission. Investors should consider these factors carefully in
evaluating the forward-looking statements and are cautioned not to
place undue reliance on such forward-looking statements.