**PRESS RELEASE**

Contact:
Thomas F. Gibney, President and CEO
12 Main Street
Walden, NY 12586
(845) 778-2171

January 22, 2010

               HOMETOWN BANCORP, INC. ANNOUNCES QUARTERLY DIVIDEND

     Hometown Bancorp,  Inc., (the "Company") (OTCBB: HTWC) the mid-tier holding
company for Walden Federal Savings and Loan Association (the "Bank"),  announced
the  approval by its Board of Directors  of a cash  dividend on its  outstanding
common stock of $0.02 per share. The dividend will be payable to stockholders of
record as of February 5, 2010 and is expected to be paid on February 19, 2010.

     Hometown Bancorp MHC, which holds 1,309,275  shares or approximately  56.3%
of the Company's total outstanding  stock, will waive receipt of the dividend on
its shares.

     Established in 1919, the Bank is a community-oriented financial institution
headquartered in Walden,  New York.  Through its six offices,  the Bank offers a
full-range of financial services to individuals and businesses within its market
area. For more information on Hometown Bancorp,  Inc. and Walden Federal Savings
and Loan Association go to our website www.waldenfederal.com.

     This press release  contains  certain  forward-looking  statements that are
based on assumptions and may describe future plans,  strategies and expectations
of the Company.  Forward-looking  statements  can be identified by the fact that
they do not relate  strictly to historical or current facts.  They often include
words like "believe," "expect," "anticipate,"  "estimate" and "intend" or future
or  conditional  verbs  such as  "will,"  "would,"  "should,"  "could" or "may."
Certain  factors  that could  cause  actual  results to differ  materially  from
expected  results include changes in the interest rate  environment,  changes in
general economic  conditions,  legislative and regulatory changes that adversely
affect the business of the Company and the Bank,  and changes in the  securities
markets.  Except  as  required  by law,  the  Company  does  not  undertake  any
obligation  to update  any  forward-looking  statements  to  reflect  changes in
belief, expectations or events.