                                                                    EXHIBIT 99.1

                                  NEWS RELEASE

FOR IMMEDIATE RELEASE                             CONTACT: DANIEL L. KRIEGER
                                                           CHAIRMAN & PRESIDENT
                                                           515-232-6251

DECEMBER 1, 2004

                            AMES NATIONAL CORPORATION
         ANNOUNCES THE LISTING OF ITS COMMON STOCK ON THE NASDAQ
                                SMALLCAP MARKET




Ames, Iowa December 1, 2004--Ames National Corporation (OTC Bulletin Board ATLO:
NASDAQ  ATLO),  an $800 million asset bank holding  company with  administrative
offices in Ames,  Iowa  announced  today that it has received  approval from the
NASDAQ  Listing  Qualifications  Panel to list its  common  stock on the  NASDAQ
SmallCap  Market.  Ames  National  Corporation  expects  trading  on the  NASDAQ
SmallCap  Market to begin on Friday,  December  3, 2004.  The common  stock will
trade under the Company's current ticker symbol, ATLO.

The listing on the NASDAQ  SmallCap  Market  will  provide  the  stability  of a
national  exchange as well as additional  visibility and access to institutional
and individual investors.

Investment  firms making a market in ATLO stock are:  Hudson  Securities,  Inc.,
Hill  Thompson  Magid  &  Co.,  Inc.,  Howe  Barnes  Investment,   Inc.,  Monroe
Securities,  Inc,. Knight Equity Markets,  L.P., Pershing Trading Company, L.P.,
Peqacock, Hislop, Staley, & Given, Inc., and UBS Capital Markets L.P.

Ames  National  Corporation's  banks  serve  customers  in  eight  central  Iowa
communities  from 12 banking  offices.  The five Iowa affiliate banks are: First
National  Bank,  Ames;  Boone Bank & Trust Co.,  Boone;  State Bank & Trust Co.,
Nevada;   Randall-Story  State  Bank,  Story  City  and  United  Bank  &  Trust,
Marshalltown.


