REGULAR QUARTERLY DIVIDEND INCREASED
                                      AND
                           5% BUYBACK PLAN ANNOUNCED


     On September 17, 1996, the Board of Directors of Industrial Bancorp, Inc.
(Nasdaq:  INBI)  increased the regular  quarterly cash dividend from $.075 per
share to $.10 per share. The quarterly dividend is to be paid November 6, 1996
to all shareholders of record as of October 23, 1996.

     Industrial  Bancorp,  Inc. also  announced its intent to "buy back" 5% of
its outstanding shares. The Company's plan, which is subject to final approval
of the  Office  of  Thrift  Supervision,  calls for the  purchase  of  277,725
treasury shares during the next twelve months.

     According to President and Chief Executive Officer David M. Windau,  "The
33% increase in dividend is in response to the  continued  strong  earnings of
the Company. The plan to buy back 5% of the Company's outstanding shares shows
our continued  efforts to strengthen  return on equity.  Both decisions are an
indication   of  our  ongoing   commitment   to   maximizing   return  to  our
shareholders."

     Industrial  Bancorp,  Inc. is the holding company for Industrial  Savings
and Loan  Association,  headquartered  in  Bellevue,  Ohio.  At June 30, 1996,
Industrial   Bancorp  reported   consolidated   assets  of  $314  million  and
shareholders' equity of $61 million.