[LETTERHEAD OF INDIANA UNITED BANCORP]

     Date:     Tuesday, November 9, 1999, 11:30 a.m. EST
     CONTACT:  James L. Saner, Sr., President and CEO Indiana United Bancorp,
               Greensburg, IN - 812-663-0157; John Rodda, President and CEO,
               First Affiliated Bancorp, Inc., Watseka, IL - 815-432-3977


                  Indiana United Bancorp Announces Definitive
                          Agreement With Illinois Bank


GREENSBURG, Ind.--(BUSINESS WIRE)--Nov. 9, 1999--Indiana United Bancorp
(Nasdaq:IUBC) today announced a definitive agreement to acquire First Affiliated
Bancorp, Inc. of Watseka, Illinois and its wholly owned banking subsidiary,
Capstone Bank, N.A.  Capstone Bank has $131 million in assets, $116 million in
deposits and four banking offices in Illinois and one in Indiana.

The transaction is a tax-free stock-for-stock exchange of 4.4167 shares of
Indiana United common stock for each outstanding share of First Affiliated.
Based on Indiana United's closing price of $19.00 per share on Friday, November
5, 1999, the implied value per First Affiliated's share is $83.92, for a total
deal value of approximately $21 million. The acquisition is pending regulatory
approval and First Affiliated Bancorp, Inc.'s shareholder approval during the
first quarter of 2000.

Indiana United Bancorp's President and CEO James L. Saner, Sr., states, "The
acquisition of First Affiliated gives our banking group a presence in the
Illinois market. It is a good philosophical fit given Indiana United's
commitment to community banking and First Affiliated's community banking
operation. It also expands our presence into the western side of Indiana. The
communities presently served by First Affiliated are small communities, not too
dissimilar to those in which the other banking subsidiaries operate. We plan to
enhance our presence in Western Indiana and Illinois by continuing our search
for additional opportunities in those markets."

"This transaction is a positive one for our shareholders, customers and
employees," commented John R. Rodda, President and CEO of both First Affiliated
Bancorp, Inc. and Capstone Bank, N.A. "Our loyal shareholders will now become
owners in a strong, more diversified corporation that is focused on shareholder
value and community-based banking. Our customers will continue to receive the
same personal attention from loyal employees, with the added benefits of a
broader range of services, larger lending limits and agricultural lending. And
our employees will now be a part of a growing organization which offers a
competitive fringe benefit package."

Indiana United Bancorp has acquired eleven banking offices within the state of
Indiana over the past fifteen months totaling approximately $225 million in
deposits. Indiana United, which is Y2K ready, has $935 million in assets and
operates 40 banking offices in fifteen counties through three banking
subsidiaries: People's Trust Company, headquartered in Brookville, Indiana;
Union Bank and Trust Company, headquartered in Greensburg, Indiana; and Regional
Bank, headquartered in New Albany, Indiana. In addition, Indiana United operates
three insurance agencies located in Portland, Indiana, Greensburg, Indiana and
Owensboro, Kentucky. The company's common stock is traded in the
over-the-counter market through the NASDAQ National Market System under the
symbol "IUBC".


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