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AMERIANA NEWS RELEASE



             AMERIANA BANCORP
            2118 Bundy Avenue
                   P.O. Box H
          New Castle, Indiana                   Contact:  Paul W. Prior
                   47362-1048                             Chairman of the Board
  765-529-2230/1-800-487-2118                             (765) 529-2230


        HARRY BAILEY TO RETIRE AS PRESIDENT AND CHIEF EXECUTIVE OFFICER
                               OF AMERIANA BANCORP


NEW CASTLE, Indiana (March 17, 2005) -- Ameriana Bancorp (NASDAQ/NM: ASBI),
today announced that Harry J. Bailey (age 62), President and Chief Executive
Officer of the Company and Ameriana Bank and Trust, has informed the Board of
Directors of his intention to retire from these offices during 2005. Bailey
stated that the timetable for his retirement is flexible and, thus, he will
continue in his role until his successor has been selected. Afterward, Bailey
will serve as a consultant to the Company for three years to ensure a smooth
transition to new leadership for Ameriana.

Bailey also currently serves on the Company's Board of Directors and is expected
to be nominated to a new three-year term at Ameriana's upcoming 2005 annual
meeting of shareholders. Bailey presently expects to accept that obligation if
nominated and elected.

In planning for management succession, Ameriana's Board has engaged an executive
search firm to assist in the identification and review of qualified candidates
to replace Bailey. This national search is actively underway and will consider
candidates from both within and outside the Company.

Reflecting on the announcement, Paul W. Prior, Chairman of the Board, said,
"Throughout his career, Harry has distinguished himself in both his professional
and personal life. For more than 20 years at Ameriana, his demand for integrity
and commitment - of himself and of those around him - has helped make us one of
the top banking organizations in this area. We are grateful for his dedication
to the Company and wish him the very best in his retirement.

"Obviously, our primary objective is to identify and select the ideal candidate
for this job," Prior added. "Because Harry has agreed to continue with his
responsibilities until we have selected his successor - and will remain with us
to oversee the transition, we can take our time and make sure we have the right
person for this very important position."

Commenting on his decision to retire, Bailey added, "I have devoted a
substantial part of my career to Ameriana Bank and Ameriana Bancorp. After so
many years in this role, the decision to seek a slower pace is not an easy one.
Through the years, we have continued to develop an internal team that is quite
capable of moving forward in a rapidly changing and often challenging industry,
and I believe this Company remains on a sound footing. As a significant
shareholder myself, I have a great deal of confidence in our team and know that
the Board will find the right person with the leadership abilities needed to
create a successful environment in the future for our shareholders and our
associates."


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Ameriana Bancorp is a bank holding company. Through its wholly owned subsidiary,
Ameriana Bank and Trust, the Company offers an extensive line of banking
services and provides a range of investments and securities products through
branches in the central Indiana area. As its name implies, Ameriana Bank and
Trust also offers trust and investment management services, has interests in
Family Financial Holdings, Inc. and Indiana Title Insurance Company, and owns
Ameriana Insurance Agency, a full-service insurance agency.

This news release contains forward-looking statements within the meaning of the
federal securities laws. Statements in this release that are not strictly
historical are forward-looking and are based upon current expectations that may
differ materially from actual results. These forward-looking statements,
identified by words such as "will," "expect," and "believe," involve risks and
uncertainties that could cause actual results to differ materially from those
anticipated by the statements made herein. These risks and uncertainties involve
general economic trends and changes in interest rates, increased competition,
changes in consumer demand for financial services, the possibility of unforeseen
events affecting the industry generally, the uncertainties associated with newly
developed or acquired operations, the amount of losses incurred from the
liquidation of certain of the Company's investments, the eventual outcome of
litigation to enforce certain surety agreements, pending transactions for the
sale of certain branches and related assets, and market disruptions and other
effects of terrorist activities. The Company undertakes no obligation to release
revisions to these forward-looking statements publicly to reflect events or
circumstances after the date hereof or to reflect the occurrence of unforeseen
events, except as required to be reported under the rules and regulations of the
Securities and Exchange Commission.