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AMERIANA NEWS RELEASE

Ameriana Bancorp
2118 Bundy Avenue
PO Box H
New Castle, Indiana                          Contact:  Jerome J. Gassen
47362-1048                                             President and
765-529-2230/1-800-487-2118                            Chief Executive Officer
                                                       (765) 529-2230

        AMERIANA DETAILS STRATEGIC PLANS FOR NEW LPO IN HAMILTON COUNTY
                        AND GREENFIELD OFFICE EXPANSION

            BOARD ANNOUNCES DECLARATION OF $0.04 QUARTERLY DIVIDEND


NEW CASTLE, Ind. (December 4, 2006) - Jerome J. Gassen, President and Chief
Executive Officer of Ameriana Bancorp (NASDAQ:ASBI), today announced that the
Board of Directors approved the establishment of a commercial loan production
office ("LPO") in Hamilton County. Establishing the LPO is consistent with the
Company's previously announced strategy to expand its commercial lending
activities. The LPO will be led by veteran banker, Vice President Timothy
Ogburn, who joined the Bank in July 2006. Commenting on the new initiative,
Gassen said, "Opening a commercial office in the fast growth market of Hamilton
County brings us closer to our customers and closer to many prospective business
customers and key referral sources. We are pleased to have an individual of
Tim's stature and experience to lead our expansion efforts."

      The Board of Directors also approved the expansion of Ameriana's banking
center in Greenfield, Indiana. The remodeling will significantly increase the
customer service areas in the lobby, expand the number of offices and conference
areas, improve customer traffic flows and increase the visibility of the office.
"Our continued growth in Greenfield and throughout Hancock County requires a
significant upgrade in the size and quality of our primary office in the
county," said Gassen. The remodeling is expected to be completed during the
second quarter of 2007.

      The Board of Directors also declared a regular quarterly cash dividend of
$0.04 per share. The quarterly dividend is payable on January 5, 2007, to all
shareholders of record as of December 15, 2006. Commenting on the dividend,
Chairman Michael Kent noted that, "The reduction in our dividend rate reflects
our lower earnings in recent years and the capital we anticipate we will need to
implement our strategic initiatives as we position the Company to achieve
increased profitability over the long term. We are confident that the approval
of the key expansion initiatives outlined in our strategic and operating plans
will lead to significant growth in the years to come."

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ASBI Details Strategic Plans, Announces Dividend
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December 4, 2006

      Ameriana Bancorp is a bank holding company. Through its wholly owned
subsidiary, Ameriana Bank, SB, the Company offers an extensive line of banking
services and provides a range of investments and securities products through
banking centers in the central Indiana area. Ameriana owns Ameriana Insurance
Agency, a full-service insurance agency, and has interests in Family Financial
Holdings, Inc. and Indiana Title Insurance Company. Ameriana Financial Services
offers securities and insurance products through Linsco/Private Ledger.

      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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