helping them to succeed in math as a gateway tograduation and preparation for the

helping them to succeed in math as a gateway tograduation and preparation for the 21st century workforce.Carnegie LearningBlended Math Solutions integrate interactive software, text, and collaborativeclassroom activity for core, full-year math instruction. Carnegie LearningAdaptive Math Solutions feature Cognitive Tutor Software that may be customizedfor Response to Intervention programs. All solutions are supported by CarnegieLearning Professional Development Services. In independent studies, CarnegieLearning curricula consistently show significant effects on student learningresulting in improved math achievement. Based in Pittsburgh, PA, CarnegieLearning was founded by cognitive and computer scientists from Carnegie MellonUniversity in conjunction with veteran mathematics teachers.Carnegie Learning, Inc.Mary Murrin, 412-690-2442 X176 Copyright Business Wire 2009. Jefferson Bancshares, Inc.

Announces Earnings for the Three and Nine MonthsEnded March 31, 2009MORRISTOWN, Tenn., May 5, 2009 (GLOBE NEWSWIRE) — Jefferson Bancshares, Inc.(Nasdaq:JFBI), the holding company for Jefferson Federal Bank, announced netearnings for the quarter ended March 31, 2009 of $515,000, or $0.09 per dilutedshare, compared to net earnings of $495,000, or $0.09 per diluted share, for thequarter ended March 31, 2008. For the nine months ended March 31, 2009, netearnings were $1.8 million, or $0.31 per diluted share, compared to $753,000, or$0.13 per diluted share, for the comparable period in 2008. The 2009 resultsreflect the Company’s acquisition of State of Franklin Bancshares, Inc., theparent company of State of Franklin Bank, a Tennessee chartered savings bankheadquartered in Johnson City, Tennessee, (collectively, “State of Franklin”) onOctober 31, 2008. Costs associated with the acquisition were approximately $11.8million, consisting of 736,000 shares of Company common stock issued to formerState of Franklin shareholders and $4.9 million in cash.Financial results for the nine months ended March 31, 2008 include a $637,000non-cash charge to deferred income tax expense to establish a valuationallowance against deferred tax assets related to the charitable contributioncarryforward directly attributable to the company’s contribution to theJefferson Federal Charitable Foundation in July 2003. Excluding this tax charge,core net earnings were $1.4 million, or $0.24 per diluted share, for the ninemonth period ended March 31, 2008. For a reconciliation of core net earnings andnet earnings on a GAAP basis, see the table below.Anderson L. Smith, President and Chief Executive Officer commented, “Financialinstitutions have more challenges ahead due to the struggling economy andhistorically low interest rates.

We continue to thoroughly review theperformance of our loan portfolio and have strengthened our allowance for loanlosses as a percentage of total loans. Although non-performing assets increasedduring the third quarter of fiscal 2009, the Company’s asset quality continuesto compare favorably with industry peers.”At March 31, 2009, total assets were $663.1 million compared to $330.3 millionat June 30, 2008. Net loans increased $225.9 million to $508.4 million at March31, 2009, compared to $282.5 million at June 30, 2008, reflecting the State ofFranklin acquisition. Deposits increased $258.6 million to $482.1 million atMarch 31, 2009, due to deposits assumed in connection with the State of Franklinacquisition. Total shareholders’ equity was $78.9 million at March 31, 2009compared to $72.8 million at June 30, 2008. The increase in stockholders’ equityis primarily due to the issuance of 736,000 shares of common stock related tothe State of Franklin acquisition.Nonperforming assets increased to 1.21% of total assets at March 31, 2009,compared to 0.25% of total assets at March 31, 2008, primarily due to anincrease in nonaccrual real estate loans.