EXHIBIT 99.1




                                  PRESS RELEASE




                                     Contact:          James S. Nelson
                                                       Senior Vice President
                                                       Steelton Bancorp, Inc.
                                                       (717) 939-1966


Steelton Bancorp, Inc.
Mechanics Savings Bank
51 S. Front Street
Steelton, PA  17113

OTC Electronic Bulletin Board "SELO"


                              FOR IMMEDIATE RELEASE
                              ---------------------


Stock Repurchase Plan
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Steelton,  Pennsylvania  - February  17, 2000 - Harold  Stremmel,  President  of
Steelton Bancorp, Inc., Steelton, Pennsylvania, the holding company of Mechanics
Savings  Bank,  today  announced  its intention to repurchase up to 5% or 19,250
shares of the  company's  common  stock.  The  repurchases  will be made in open
market  transactions,  subject to availability of stock, market conditions,  the
trading  price  of the  stock  and  the  Company's  financial  performance.  The
repurchase  plan will mitigate some of the potentially  dilutive  effects of the
Company's stock benefit plans and would also be available for general  corporate
use. The repurchase is expected to be completed by July 8, 2000.


For further information contact:
James S. Nelson, Investor Relations Officer




                                                                                
51 South Front Street * P.O. Box 7614 * Steelton, Pennsylvania  17113 * Phone 717-939-1966 * FAX 717-939-2629