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                         [AMERIANA BANCORP LETTERHEAD]

Contact:  Jerome J. Gassen
          President and Chief Executive Officer
          (765) 529-2230


             AMERIANA BANCORP SETTLES RLI LITIGATION FOR $2,750,000


NEW CASTLE, Ind. (August 31, 2007) - Ameriana Bancorp (NASDAQ: ASBI) today
announced that it has settled its last litigation in the Commercial Money
Center, Inc. ("CMC") matter, that being a lawsuit against RLI Insurance Company
("RLI"). RLI, one of two insurors that issued surety bonds guaranteeing payments
on leases originated and sold by CMC, will pay $2,750,000 to Ameriana in full
satisfaction of the Company's claims against RLI. The Company will record this
payment as a recovery to the allowance for loan losses in the third quarter of
2007. The Company will evaluate the adequacy of its allowance for loan losses,
and it is possible that its evaluation may result in a significant reduction of
provision expense as a result of this recovery.

      Commenting on the announcement, Jerome J. Gassen, President and Chief
Executive Officer, said, "We are pleased to announce a successful conclusion to
this litigation. Not only does this settlement allow us to recoup a substantial
portion of the investment we made earlier in CMC leases, which we wrote-off
completely in prior years, it also ends the continuing drag on earnings caused
by legal and professional expenses associated with this protracted litigation.
With the elimination of a significant, long-running distraction for our Company
and its management, we look forward to placing our full energy and focus on the
initiatives we have in place to improve our operations and extend our reach to
new customers and markets."

      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.

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