AMERIANA NEWS RELEASE


                          [AMERIANA BANCORP LETTERHEAD]


                                                Contact:   Paul W. Prior
                                                           Chairman of the Board
                                                           (765) 529-2230

        HARRY J. BAILEY RETIRES AS PRESIDENT AND CHIEF EXECUTIVE OFFICER
                              ---------------------
                  JEROME J. GASSEN APPOINTED TO SUCCEED BAILEY

NEW  CASTLE,  Ind.  (June 1, 2005) - Ameriana  Bancorp  (NASDAQ/NM:  ASBI) today
announced that Harry J. Bailey retired as President and Chief Executive  Officer
and a Director of the Company and its wholly owned subsidiary, Ameriana Bank and
Trust SB. Bailey has been with Ameriana since 1984 and a director since 1987. He
will remain a consultant to Ameriana for three years.

         Jerome J. Gassen has been  appointed to succeed Bailey as President and
Chief Executive Officer and as a member of the Board of Directors of the Company
and the Bank.

         Paul W. Prior, Chairman of the Board of the Company said, "On behalf of
our shareholders  and customers,  I would like to thank Harry for his many years
of dedicated service to Ameriana. He has been instrumental in the success of the
Company and I am grateful that he has agreed to provide us with his expertise as
a consultant to ensure a smooth transition."

         Ameriana  Bancorp is a bank holding  company.  Through its wholly owned
subsidiary,  Ameriana Bank and Trust SB, 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 SB also offers trust and investment management services.  The Bank 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
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,  changes in interest rates, loss
of deposits and loan demand to other financial institutions, substantial changes
in financial  markets;  changes in real estate value and the real estate market,
regulatory  changes,  possibility  of unforeseen  events  affecting the industry
generally,  the  uncertainties  associated  with  newly  developed  or  acquired
operations,  the outcome of pending litigation, and market disruptions and other
effects of terrorist activities.  The Company undertakes no obligation to update
these  forward-looking  statements to reflect events or circumstances  after the
date  hereof or to  reflect  the  occurrence  of  unforeseen  events,  except as
required  under  the  rules  and  regulations  of the  Securities  and  Exchange
Commission.

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