EXHIBIT 99.1



                               Putnam Savings Bank
                                  News Release
August 21, 2006

For immediate release

Contact: Thomas Borner - Chairman & CEO (860) 928-6501


                   PSB Holdings, Inc. and Putnam Savings Bank
                           Announce New Board Members


PUTNAM,  CONNECTICUT - August 21, 2006; PSB Holdings,  Inc. announced today that
Robert J. Halloran,  Jr. and Charles W. Bentley,  Jr. have been appointed to its
Board of Directors and to the Board of Directors of its wholly owned subsidiary,
Putnam  Savings Bank.  Mr.  Halloran and Mr.  Bentley were also appointed to the
Board of  Director of Putnam  Bancorp,  MHC,  the  majority  stockholder  of the
company.

     Robert J.  Halloran,  Jr. was elected  President of Putnam  Savings Bank in
June 2006. Mr. Halloran joined Putnam Savings Bank as Chief Financial Officer in
2004. Mr. Halloran  earned his Bachelor of Science  Degree,  Magna Cum Laude, at
Clark  University  in Worcester,  where he also  received his Masters  Degree in
Business Administration,  with a concentration in finance. Mr. Halloran has been
a  teacher  for the last  seventeen  years at  colleges  including  Quinsigamond
Community College and Clark  University.  He currently teaches at the Center for
Financial  Training  and has been a member  of the  Board  of  Directors  of the
American  Institute  of Banking.  Mr.  Halloran  has been a  participant  in the
Eastern  CT Relay for Life and has  volunteered  for  Habitat  for  Humanity  of
Northeastern Connecticut. He lives in Webster, Massachusetts with his family.

     Charles  W.  Bentley,  Jr. is Owner and Chief  Executive  Officer of Colt's
Plastics Company,  Inc. in Dayville,  CT where he has been employed for the last
thirty-five  years.  Colt's  Plastics is recognized as a global market leader in

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the  plastics  industry.  In his role as CEO, Mr.  Bentley  manages the Company,
including  overseeing  product  development,   new  processes,   and  automation
initiatives.  Mr.  Bentley  received  his  Bachelor of Arts degree from  Hanover
College where he majored in Business  Administration.  Mr.  Bentley was actively
involved with the Woodstock Academy for twenty years, having served as President
of the Alumni  Association  as well as President  of the Board of Trustees.  Mr.
Bentley has also served as past  President  of the  Quinnebaug  Valley  Plastics
Institute,  which he helped to establish during his twelve-year involvement with
Quinnebaug  Valley  Community  College.  He is also  active  in the  Connecticut
Plastics  Council as well as having been active with the Society of the Plastics
Industry and has held various positions within the New England Region and at the
national  level.  Mr.  Bentley and his wife reside in  Woodstock.

     PSB Holdings, Inc., headquartered in Putnam,  Connecticut, is the parent of
Putnam Savings Bank, a federally  chartered  stock savings bank founded in 1862.
The  Bank  offers  a  wide  range  of  financial   services  through  its  seven
full-service  offices.  Putnam  Savings Bank also operates a  full-service  loan
center in Putnam,  Connecticut.  The Bank's  deposits are insured by the Federal
Deposit Insurance Corporation.  PSB Holdings,  Inc.'s common stock trades on the
NASDAQ Stock Market under the symbol PSBH.

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