MBHIP Midwest Banc Holdings - Perp Pfd Conv Ser A (MM)

Midwest Banc Holdings, Inc. (NASDAQ: MBHI) announced that its board of directors declared a preferred stock dividend on its Series A Noncumulative Redeemable Convertible Perpetual Preferred Stock (NASDAQ: MBHIP) which will result in a $0.484375 per share dividend on Midwest's depositary shares with a record date of September 15, 2008 and a payment date of September 30, 2008.

Midwest Banc Holdings, Inc., with $3.7 billion in assets, provides a wide range of retail and commercial banking services, personal and corporate trust services, securities services and insurance brokerage services in the greater Chicago area. The principal operating subsidiaries of Midwest Banc Holdings, Inc. are Midwest Bank and Trust Company and Midwest Financial and Investment Services, Inc. Midwest has 29 banking offices and operates 31 ATMs. On January 1, 2008, Midwest joined the Allpoint�/STARsf� surcharge-free network. Midwest customers now have access to thousands of surcharge-free ATMs nationwide, with over 1,000 ATMs in the Chicagoland area.

Information on Midwest products, services and locations is available at: www.midwestbanc.com

For further information: John B. Pelling, III Vice President - Investor Relations (708) 498-2013 Email Contact