NEWS RELEASE

FOR IMMEDIATE RELEASE                                  Contact John W. Corey
April 20, 1999                                         President
                                                       (765) 742-1064



                LSB Financial Corp. Declares 3-for-2 Stock Split
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     LSB Financial Corp. (NASDAQ:LSBI),  the parent company of Lafayette Savings
Bank,  FSB,  today  reported  that its board of directors has declared a 3-for-2
stock split in the form of a 50-percent  stock  dividend.  The dividend  will be
distributed to  shareholders of record as of May 14, 1999. The payment date will
be June 4, 1999, with cash paid in lieu of fractional shares.

     "Our  Board  took this  action as a  continuation  of our goal to  maximize
long-term  shareholder  value," said President and CEO John W. Corey. "It is our
intent for this  action to  increase  the number our  outstanding  shares and to
lower  the  price  of our  stock,  making  it  more  affordable,  adn  therefore
increasing its liquidity."

     The closing price of LSB stock on April 19, 1999,  was $27.125 per share as
reported by the NASDAQ National Market.