News

Northern States Financial Corporation Appoints Barbara J. Martin to Board of Directors

September 22, 2010

Northern States Financial Corporation

1601 North Lewis Avenue

P.O. Box 39

Waukegan, Illinois 6007-0039

847-244-6000

WAUKEGAN, IL, September 22, 2010 - Northern States Financial Corporation (Nasdaq: NSFC), holding company for NorStates Bank, a FDIC-insured financial institution, today announced that Barbara J. Martin has been appointed as a director of the Company to serve until the next annual meeting of stockholders. The addition of Ms. Martin to the Board of Directors of the Company increases the number of directors to nine members. Ms. Martin will also serve as a director of NorStates Bank.

Ms. Martin has been a resident of Lake County, Illinois for over 5 years and has been the Chief Executive Officer of Vista Health Systems in Waukegan, Illinois since 2006. Previous to that, Ms. Martin served as Chief Operating Officer and Chief Executive Officer of Vista Health

and has been in the health services field for 33 years. Ms. Martin serves on the Board of Directors for the Illinois Hospital Association and had served as Chairman of the Illinois Hospital Association Investor-Owned Counsel from 2008 - 2009. Holding a Masters Degree of Business

Administration, Ms. Martin also has a Bachelors Degree in Nursing and is a Registered Nurse. In 2007, Ms. Martin received the Outstanding Community Outreach to Latinos Award for her activities in Waukegan, Illinois.

"Ms. Martin is a local business leader who is active in the community and is a welcome addition to the Board of Directors," said Allan Jacobs, Chairman of the Board of Northern States Financial Corporation. "Ms. Martin's knowledge of the health services industry and administrative insight will be of great value to the Company.

Northern States Financial Corporation is the holding company for NorStates Bank, a fullservice commercial bank with eight branches in Lake County, Illinois. NorStates Bank is the successor to financial institutions dating to 1919. NorStates Bank serves the populations of northeastern Illinois and southeastern Wisconsin.

NSFC Press Release

September, 2010

"We are happy that Mr. Abdula is staying on as an active director," said Mr. Jacobs. "He will continue to provide valuable contributions and insight to the Board through his knowledge and leadership in the community."

About Northern States Financial Corporation

Northern States Financial Corporation is the holding company for NorStates Bank, a full-service commercial bank with eight branches in Lake County, Illinois. NorStates Bank is the successor to financial institutions dating to 1919. NorStates serves the populations of northeastern Illinois and southeastern Wisconsin.

Forward-Looking Information

Statements contained in this news release that are not historical facts may constitute forward-looking statements (within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended), which involve significant risks and uncertainties. The Company intends such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995, and is including this statement for purposes of invoking these safe harbor provisions. Forward-looking statements, which are based on certain assumptions and describe future plans, strategies and expectations of the Company, are generally identifiable by the use of words "believe," "expect," "intend," "anticipate," "estimate," "project," "plan," or similar expressions. The Company's ability to predict results or the actual effect of future plans or strategies is inherently uncertain and actual results may differ from those predicted. The Company undertakes no obligation to update these forward-looking statements in the future. Factors that could have a material adverse effect on the operations and could affect the outlook or future prospects of the Company and its subsidiaries include, but are not limited to, the potential for further deterioration in the credit quality of the Company's loan and lease portfolios, a continued increase in nonperforming loans, uncertainty regarding the Company's ability to ultimately recover on loans currently on nonaccrual status, unanticipated changes in interest rates, general economic conditions, increasing regulatory compliance burdens or potential legislative/regulatory changes, monetary and fiscal policies of the U.S. Government, including polices of the U.S. Treasury and the Federal Reserve Board, the quality or composition of the Company's loan or investment portfolios, deposit flows, competition, demand for loan products and financial services in the Company's market area, and changes in accounting principles, policies and guidelines. These risks and uncertainties should be considered in evaluating forward-looking statements.

For Additional Information, Contact:

Scott Yelvington, Executive Vice President (847) 244-6000 Ext. 201

Websites: www.nsfc.com

www.nsfc.net