
                                                                    Exhibit 99.1



                                  NEWS RELEASE

FOR IMMEDIATE RELEASE                                Contact: Daniel L. Krieger,
                                                              President
                                                              (515) 232-6251
                                                              (515) 663-3042
January 15, 2002




                            AMES NATIONAL CORPORATION
                   ANNOUNCES FOURTH QUARTER AND 2001 EARNINGS

         Fourth  Quarter 2001 earnings were $.82 per share,  a 12% increase over
the $.73 per share  earned in the same  quarter in 2000.  For the year  earnings
were $3.38 per share compared to $2.92 per share earned in 2000, a 12% increase.
Lower interest paid on deposit  accounts and borrowed  funds  contributed to the
higher earnings.

         Affiliate  bank  deposits  increased  4% to $512  million  while  loans
decreased 6% to $323 million.  Loan demand has dropped off  considerably  due to
the slower economy.  Total corporate  assets were flat,  ending the year at $622
million compared to $621 million for year-end 2000.

         Ames National  Corporation  banks are First National Bank,  Ames, Boone
Bank & Trust Co., Boone, State Bank & Trust Co., Nevada and Randall-Story  State
Bank, Story City.


