NEWS RELEASE



Donald P. Weinzapfel
Chairman of the Board &                                   FOR IMMEDIATE RELEASE
Chief Executive Officer                                      December 17, 1999


Permanent Bancorp, Inc.                                 FOR FURTHER INFORMATION
101 S.E. Third Street                                        Don Weinzapfel
Evansville, IN 47708                                         (812) 437-2265
(812) 437-BANK



                    PERMANENT BANCORP ANNOUNCES NEGOTIATIONS

         (December  17,  1999) --  Donald  P.  Weinzapfel,  Chairman  and  Chief
Executive  Officer  of  Permanent  Bancorp,  Inc.  (NASDAQ - "PERM"), parent  of
Permanent  Bank,  Evansville,  Indiana,  announced  today  that the  Company  is
involved  in  negotiations  that  potentially  could  lead to a stock  for stock
transaction.  Donald  P.  Weinzapfel  cautioned,  however,  that "I can offer no
assurance that our negotiations will conclude in a positive manner." The Company
issued the press release following increases in its price and trading volume.

                                       END