NEWS RELEASE


Donald P. Weinzapfel
Chairman of the Board &                                   FOR IMMEDIATE RELEASE
Chief Executive Officer                                      December 20, 1999


Permanent Bancorp, Inc.                                  FOR FURTHER INFORMATION
101 S.E. Third Street                                         Don Weinzapfel
Evansville, IN 47708                                          (812) 437-2275
(812) 437-2601


                PERMANENT BANCORP INC. ANNOUNCES STOCK FOR STOCK
                       EXCHANGE WITH OLD NATIONAL BANCORP


         (Evansville,  Indiana)  --  Old  National  Bancorp  (NASDAQ:  OLDB)  of
Evansville,  Indiana,  has agreed to acquire  Permanent  Bancorp,  Inc. (NASDAQ:
PERM), a $500 million asset holding  company also of  Evansville.  The companies
have signed a definitive  agreement to merge in an all-stock  transaction valued
at approximately $92 million.

         The agreement calls for fixed price with the exchange ratio to be based
on the  price  of Old  National  stock  at  the  time  of  closing,  subject  to
adjustment.  Old  National  intends to  purchase  the shares to be issued in the
transaction  in the  open  market  prior  to  closing  and to  account  for  the
transaction  as a  purchase.  The  transaction,  subject  to  regulatory  agency
approval and the approval of Permanent  shareholders is expected to be completed
by the third quarter of 2000. Upon completion of merger,  preliminary  plans are
to combine Permanent's offices into Old National's.

         "The  acquisition  of Permanent adds to our already strong market share
in the  fast  growing  area of  Vanderburgh,  Warrick  and  Gibson  Counties  in
Southwestern  Indiana," said Jim Risinger,  Old National  Bancorp's chairman and
chief executive officer.  "On a pro-forma basis, we will  significantly  enhance
our preeminent  deposit market share position for the  three-county  area.  This
transaction  is consistent  with our goal of being the leader in all our service
areas."

         Permanent's Chairman and Chief Executive Officer, Don Weinzapfel, said,
"The  joining of  Permanent  with Old  National  will  allow us to provide  more
locations and extend a broader array of products and services to our  customers.
We are excited about the  opportunities  presented by this  partnership,  and we
feel this transaction is in the best interest of providing financial services to
the communities we both serve."

         According to Old National  Chief  Financial  Officer,  John S. Poelker,
"Our ability to negotiate  this  transaction  at this time is a perfect fit with
our  acquisition  and capital  planning  strategy.  The in-market  synergies and
transaction  structure  are very  attractive  and  will  have an  immediate  and
positive  impact  on  our  financial  results  and  our  service  levels  in the
Evansville market. In addition, the shares to be issued in this transaction will
be purchased in the market over the next four to five months,  and will allow us
to continue our stock repurchase program begun in August."

         Old National has filed a  registration  statement  with the SEC for the
issuance of Trust  Preferred  securities  and plans to issue such  securities to
provide financing for its stock repurchase program and provide additional Tier 1
capital.

         Old  National's  total assets will be  approximately  $8.5 billion upon
completion of this and two other pending mergers with ANB Corporation in Muncie,
Indiana, and Heritage Financial in Clarksville,  Tennessee. For more information
on Old National, please visit the company's website at www.oldnational.com.

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