NEWS RELEASE

FOR IMMEDIATE RELEASE                                  Contact John W. Corey
January 26, 1999                                                President
                                                       (765) 742-1064



                   LSB Financial Corp. Announces Completion of
                             Stock Repurchase Pogram
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     LSB Financial Corp. (NASDAQ:LSBI),  the parent company of Lafayette Savings
Bank, FSB, today announced the completion of its latest  repurchase of 5% of its
shares.  The Company  repurchased 45,691 shares in the open market over an eight
month  period.  The  repurchased  shares  will be retired  into  authorized  but
unissued status.

     LSB President and CEO John W. Corey stated, "We are pleased to announce the
successful  completion  of this stock  repurchase  program  which  typifies  our
efforts to maximize  long-term  shareholder value. We believe that by continuing
to execute our business plan and taking advantage of the opportunities presented
to us by the  market,  we will  continue  to  reward  our  shareholders  for the
confidence they place in us."

     The closing price of LSB stock on January 21, 1999, was $27.25 per share as
reported by the NASDAQ stock market.