FOR
IMMEDIATE RELEASE

|Contact: |  | Thomas Stienessen
Chief Executive Officer
(507) 387-2265
|-------- |  | --------------------------------------------------------

NORTHERN STAR FINANCIAL, INC. REPORTS  SECOND QUARTER RESULTS

MANKATO, Minnesota (February 14, 2001)Northern Star Financial, Inc. (NASDAQ/OTC BB: "NSBK") today announced results for the Company
and its wholly owned subsidiary Northern Star Bank for the second quarter of the fiscal year ending June 30, 2001.

Total
assets of Northern Star Financial increased by $5.32 million during the second quarter and $10.6 million during the first six months of the fiscal year. Loan
receivables net of allowance for loan losses increased by $5.1 million during the quarter. Assets and deposits as of December 31, 2000 more than doubled when compared to balances at
December 31, 1999. Assets increased 101% from $16.67 million at December 31, 1999 to $33.54 million at December 31, 2000. During the same time period deposits
increased 112% from $13.14 million to $27.95 million. Northern Star Financial reported a net loss of $(0.12) and of $(0.23) per share for the three and six month periods ended
December 31, 2000 respectively. There was an improvement of $0.34 and $0.27 per share when compared to the results for the three and six month periods ending December 31, 1999 of the
prior fiscal year.

Northern
Star Bank reported a net profit of $5,578 for the quarter and $18,491 for the six-month period ending December 31, 2000. This was a basic profit of $0.04
per share during the first six months of the fiscal year. The reserve for future loan losses was $221,900 at quarter end, which was slightly more than 1% of total loans held for investment.
Non-performing loans at quarter end were negligible.

Thomas
Stienessen, Chief Executive Officer of Northern Star Financial, Inc. offered the following comments on the Company's second quarter results, "The financial markets
during the past two years have been favorable to community banks, and we have expended every effort to take advantage of the situation. In less than two years we have positioned our organization to be
a viable competitor in our market place." Stienessen went on to say, "We have been fortunate to have a favorable economy but
our greater good fortune has been the support of our customers, shareholders, directors and employees."

In
September the Company announced that it had entered into an agreement with the investment banking firm of Berthel Fisher and Company who has committed to assisting the Company in
selling up to $3 million but not less than $500,000 of its common stock. Under the terms of the original offering initiated in September 2000 the parties have agreed to extend the
offering to March 18, 2001.

When
commenting on the agreement to extend the offering Stienessen said, "During the past six months the financial markets have been in severe turmoil and in spite of early favorable
results, we have had only moderate success in over-coming the aversion of investors to invest in new issues. However, we believe that prospects for further moderation of interest rates
coupled with the resolution of the presidential election has greatly increased our prospects of selling the maximum number of shares permitted under the offering".

The
Company commenced operations on January 25, 1999 as a bank holding company whose subsidiary provides financial services. Northern Star Bank's business is that of a
financial intermediary and consists primarily of attracting deposits from the general public and using such deposits, together with borrowings and other funds, to make secured and unsecured loans to
business and professional concerns and mortgage loans secured by residential real estate and other consumer loans.

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NORTHERN STAR FINANCIAL SUMMARY FINANCIAL DATA

The following table summarizes certain historical financial data of Northern Star Financial and its subsidiary on a consolidated basis as of and for the Three
months and six months ended December 31, 2000 and 1999. You should read this table in conjunction with our financial statements and related notes appearing elsewhere in this document.

|                                        |  | For The Three Months
Ended December 31, |         | For The Six Months
Ended December 31, |  
|--------------------------------------- |  | --------------------------------------- | ------- | ------------------------------------- | -
|
|
|Statement of Income:                    |  |                                         |         |                                       |  
|Interest income                         |  | $                                       | 627,533 |                                       | $
|Interest expense                        |  |                                         | 408,813 |                                       |  
|                                        |  |                                         |         |                                       |  
|Net interest income                     |  |                                         | 218,720 |                                       |  
|Provision for loan losses               |  |                                         | 20,050  |                                       |  
|Other non-interest income               |  |                                         | 29,961  |                                       |  
|Non-interest expense                    |  |                                         | 281,465 |                                       |  
|                                        |  |                                         |         |                                       |  
|Income (loss) before income tax expense |  |                                         | (52,834 | )                                     |  
|Income tax expense (benefit)            |  |                                         |        |                                       |  
|                                        |  |                                         |         |                                       |  
|Net income (loss)                       |  | $                                       | (52,834 | )                                     | $
|                                        |  |                                         |         |                                       |  
|Balance Sheet:                          |  |                                         |         |                                       |  
|Assets                                  |  |                                         |         |                                       |  
|Allowance for loan losses               |  |                                         |         |                                       |  
|Deposits                                |  |                                         |         |                                       |  
|Shockholders' equity                    |  |                                         |         |                                       |  
|Per Share Data:                         |  |                                         |         |                                       |  
|Net income (loss)basic                 |  | $                                       | (0.12   | )                                     | $
|Net income (loss)diluted               |  | $                                       | (0.12   | )                                     | $
|Book value                              |  |                                         |         |                                       |  

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