Guaranty Federal Bancshares, Inc. and Guaranty Bank Not Affiliated With Texas-Based Guaranty Financial Group, Inc. and Its Bank Subsidiary

SPRINGFIELD, MO - (August 24, 2009) - Springfield, Missouri-based Guaranty Federal Bancshares, Inc. (NASDAQ:GFED) and its subsidiary, Guaranty Bank, clarified that they are not affiliated or connected with the recently failed Texas-based Guaranty Financial Group, or its similarly named bank subsidiary, Guaranty Bank, in any way.

Locally-headquartered Guaranty Bank solely operates nine branches and three loan production offices in southwest Missouri. President and CEO Shaun Burke said, "We understand that our customers are extremely concerned to hear that the Guaranty Bank in Texas has failed, but they can rest assured that their local Guaranty Bank has absolutely no affiliation with that failed institution. Our bank is financially sound and our employees continue to focus on offering the best customer service and financial products to service our local community."

About Guaranty Federal Bancshares, Inc.

Guaranty Federal Bancshares, Inc. (NASDAQ:GFED) has a subsidiary corporation offering full banking services. The principal subsidiary, Guaranty Bank, is headquartered in Springfield, Missouri, and has nine full-service branches in Greene and Christian Counties and Loan Production Offices in Wright, Webster and Howell Counties. In addition, Guaranty Bank is a member of the TransFund ATM network which provides its customers surcharge free access to over 100 area ATMs and over 1,600 ATMs nationwide. For more information visit the Guaranty Bank website: www.gbankmo.com.

The discussion set forth above may contain forward-looking comments. Such comments are based upon the information currently available to management of the Company and management's perception thereof as of the date of this release. Actual results of the Company's operations could materially differ from those forward-looking comments. The differences could be caused by a number of factors or combination of factors including, but not limited to: changes in demand for banking services; changes in portfolio composition; changes in management strategy; increased competition from both bank and non-bank companies; changes in the general level of interest rates; the effect of regulatory or government legislative changes; technology changes; and fluctuation in inflation.

Contacts:  Guaranty Bank
           Shaun A. Burke, President & CEO
           417-520-4333
           1341 W. Battlefield
           Springfield, MO 65807