EXHIBIT 99.1

                                  NEWS RELEASE

BW Account Number 1079001
DATE:           January 28, 2003 12:00pm E.S.T.
CONTACT:        James L. Saner, Sr., President and CEO
                MainSource Financial Group 812-663-0157


                    MAINSOURCE FINANCIAL GROUP-NASDAQ, MSFG -
                       Announces Stock Repurchase Program


Greensburg, Indiana (NASDAQ: MSFG) James L. Saner, Sr., President & Chief
Executive Officer of MainSource Financial Group, announced today that its Board
of Directors has authorized a common stock repurchase plan effective February 1,
2003, whereby MainSource Financial Group may purchase up to 170,000 shares, or
approximately 2.5%, of its common shares outstanding over a twelve month period
of time. The program will be dependant upon market conditions and there is no
guarantee as to the exact number of shares to be repurchased by the Company.
This plan replaces the Company's current repurchase plan that expires January
31, 2003.

James L. Saner, Sr., President and Chief Executive Officer, stated that
MainSource Financial Group's Board of Directors considers the Company's common
stock to be an attractive investment. The purchase will generally occur in the
open market but may also involve unsolicited negotiated transactions.

The shares repurchased would be used for general corporate purposes and the
repurchase program may improve liquidity in the market for MSFG common stock.
Mr. Saner stated, "We believe that the repurchase of Company stock benefits our
shareholders and illustrates the Company's commitment to enhancing long-term
shareholder value."

MainSource Financial Group, Inc., headquartered in Greensburg, Indiana, is
listed on the NASDAQ Stock Market (trading symbol: MSFG) and is a
community-focused, multi-bank, financial services oriented holding company with
assets of approximately $1.2 billion. Through its three banking subsidiaries,
MainSource Bank, Greensburg, Indiana; Regional Bank, New Albany, Indiana; and
Capstone Bank, Watseka, Illinois, it operates 42 offices in 18 Indiana counties
and seven offices in three Illinois counties. Through its insurance subsidiary,
MainSource Insurance, it operates five offices in Indiana as well as one in
Owensboro, Kentucky.

Forward-Looking Statements

Except for historical information contained herein, the discussion in this press
release may include certain forward-looking statements based upon management
expectations. Factors which could cause future results to differ from these
expectations include the following: general economic conditions; legislative and
regulatory initiatives; monetary and fiscal policies of the federal government;
deposit flows; the costs of funds; general market rates of interest; interest
rates on competing investments; demand for loan products; demand for financial
services; changes in accounting policies or guidelines; and changes in the
quality or composition of the Company's loan and investment portfolios.

The forward-looking statements included in the press release relating to certain
matters involve risks and uncertainties, including anticipated financial
performance, business prospects, and other similar matters, which reflect
management's best judgment based on factors currently known. Actual results and
experience could differ materially from the anticipated results or other
expectations expressed in the Company's forward-looking statements as a result
of a number of factors, including but not limited to, those discussed in the
press release.

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  MainSource Financial Group, Inc., 201 N. Broadway, Greensburg, Indiana 47240