NEWS RELEASE
                                 ------------

Donald P. Weinzapfel                               FOR IMMEDIATE RELEASE
Chairman of the Board,                             ---------------------
President and Chief
Executive Officer
Permanent Bancorp, Inc.                            FOR FURTHER INFORMATION
101 S.E. Third Street                              -----------------------
Evansville, IN 47708                                   Robert A. Cern
812/428-6800                                           812/428-6804


PERMANENT BANCORP, INC. REPURCHASES 7.3% OF ITS STOCK PURSUANT TO
AGREEMENT WITH LASALLE FINANCIAL PARTNERS

         (Evansville,  Indiana) -- Donald P.  Weinzapfel,  Chairman of the Board
and Chief Executive Officer of Permanent  Bancorp,  Inc. (NASDAQ - "PERM"),  the
holding  company for Permanent  Federal  Savings Bank,  today announced that the
company had acquired all 302,100  shares of its stock held by LaSalle  Financial
Partners.  The  shares  were  acquired  on the open  market  and will be held as
treasury shares and used as future business  opportunities arise. As part of the
agreement to purchase the stock,  LaSalle  Financial  Printers agreed to refrain
from acquiring  ownership or control of any shares of Permanent Bancorp stock in
the future.

"The company  believes  that market  conditions  presented an opportune  time to
repurchase its shares" commented Weinzapfel.

         The Company provides  services and products through  Permanent  Federal
Savings Bank. The Bank currently has eleven Evansville locations and branches in
the  communities  of Newburgh,  Jasper,  Oakland City and Fort Branch,  Indiana.
Through the Bank's  subsidiary,  Perma Service Corp., the Bank offers investment
products  through its  partnership in Family  Financial Life Insurance  Company.
Perma Service Corp. also owns and operates Permanent  Insurance Agency,  Inc., a
full service insurance agency in Evansville.


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