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                                   N O T I C E
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TO:  Directors  and  Executive  Officers  of  Peoples  Federal  Savings  &  Loan
     Association of Sidney

SUBJECT: Notice of Trading Restriction due to 401(k) Blackout

DATE: May 18, 2004


Pursuant to Section 306(a)(1) of the  Sarbanes-Oxley Act of 2002, this Notice is
to inform you that there will be a blackout period, in which you may neither buy
nor sell Peoples-Sidney Financial Corporation stock (PSFC).

The blackout  period is due to a change in the investment  choices  available to
participants in the Peoples Federal Savings & Loan  Association of Sidney 401(k)
Retirement  Plan.  During the blackout  period,  participants  of the Peoples of
Federal Savings & Loan Association of Sidney 401(k) Retirement Plan may not make
investment changes nor receive loans or distributions from the Plan.

The  blackout  period is  expected  to begin on July 1, 2004 and end on July 14,
2004.

You may obtain  information,  at no cost, before,  during and after the blackout
period by contacting:

                                    Rachel M. Brewer
                                    Employee Benefits Trust Officer
                                    Security National Bank & Trust Company
                                    40 South Limestone Street
                                    Springfield, OH  45502
                                    (937) 324-6915

The above  person  has been  designated  by  Peoples  Federal  Savings  and Loan
Association of Sidney to answer questions regarding the blackout period.