For Immediate Release

             Hudson River Bancorp, Inc. and Ambanc Holding Co., Inc.
                                 Announce Merger

HUDSON, NEW YORK;  AMSTERDAM,  NEW YORK-September 4, 2001--Hudson River Bancorp,
Inc. (NASDAQ: HRBT) ("Hudson River") and Ambanc Holding Co., Inc. (NASDAQ: AHCI)
("Ambanc"),  jointly announced today that they had entered into an Agreement and
Plan of Merger (the  "Agreement")  whereby Ambanc and its  wholly-owned  banking
subsidiary,  Mohawk  Community  Bank  ("Mohawk"),  will be merged  with and into
Hudson River's  subsidiary bank, Hudson River Bank & Trust Company,  with Hudson
River  surviving the merger.  Upon  completion of the merger,  Hudson River will
have approximately $2.6 billion in total assets and be the largest locally based
financial institution in the Capital District area.

The Agreement provides that Ambanc shareholders will receive $21.50 per share in
cash for each share of Ambanc stock they own. The proposed  merger is subject to
certain  customary  conditions for  transactions of this type  including,  among
others,  Ambanc  shareholder  approval and  regulatory  approval.  The merger is
valued at  approximately  $100 million and is expected to be  consummated in the
first quarter of next year.

 "This   combination   continues  to  demonstrate   our  commitment  to  enhance
shareholder   value  while   supporting   the  financial   needs  of  our  local
communities,"  commented  Carl A. Florio,  Hudson  River's  President  and Chief
Executive  Officer.  Mr.  Florio  further  stated  that "as with our most recent
strategic  mergers,  we expect this  transaction to be accretive to earnings and
will  support our goal to provide  high  quality  products  and  services to the
communities  we serve.  The community  bank focus that the  management of Mohawk
Community  Bank have  demonstrated  complements  Hudson  River's own focus as we
expand our market presence."

Mr. John M. Lisicki,  President and Chief Executive Officer of Ambanc and Mohawk
stated that "The merger with Hudson River not only provides  tremendous value to
our  shareholders  but is also a good strategic  combination for both companies.
Our  community,  customers  and  employees  should  all be well  served  by this
business  combination as Hudson River is, like us, committed to the principle of
community  banking.  We look forward to completing  our merger with Hudson River
and continuing to serve our communities together."

Mr.  Lawrence B. Seidman,  Chairman of the Board of Directors of Ambanc,  stated
that "Our  mission at Ambanc was to maximize  shareholder  value in the company.
This transaction with Hudson River accomplishes that mission."

Ambanc will file proxy  materials with the  Securities  and Exchange  Commission
("SEC")  which  will set forth  the  complete  details  of the  merger.  WE URGE
INVESTORS TO CAREFULLY READ THE PROXY  MATERIALS WHEN FILED WITH THE SEC BECAUSE
THEY WILL CONTAIN IMPORTANT INFORMATION. Investors will be able to obtain a copy
of the  Ambanc  proxy  materials  free  of  charge  at the  SEC's  web  site  at
www.sec.gov.  The materials may also be obtained for free by directing a written
request to Ambanc Holding Co.,  Inc., 11 Division  Street,  Amsterdam,  New York
12010,  Attention:  Secretary.  INVESTORS SHOULD READ THE PROXY MATERIALS BEFORE
MAKING A DECISION REGARDING THE MERGER.






Ambanc  and  its  directors   and  executive   officers  may  be  deemed  to  be
"participants"  in  Ambanc's  solicitation  of  proxies in  connection  with the
proposed  merger.  Information  regarding  the  participants,   including  their
holdings  of Ambanc  stock,  is  contained  in  Ambanc's  annual  meeting  proxy
materials filed with the SEC on April 18, 2001.

Hudson River Bank & Trust Company, a New York chartered savings bank established
1850, is headquartered in Hudson,  New York with 37 full-service  branch offices
located in Columbia, Rensselaer, Albany, Saratoga,  Schenectady,  Greene, Warren
and Dutchess  counties.  Hudson River Bank & Trust Company is a diversified  and
progressive financial services company offering commercial, trust and investment
management,  brokerage,  on-line  banking  services and insurance  products,  in
addition to its  customary  banking  products.  Its  primary  goal is to enhance
shareholder value while maintaining its identity as a community bank.

Ambanc  Holding Co.,  Inc. is a unitary  savings and loan holding  company.  The
Company's primary subsidiary, Mohawk Community Bank, serves customers in sixteen
upstate New York offices, located in Montgomery, Fulton, Schenectady,  Saratoga,
Albany,  Otsego,  Chenango and Schoharie  counties.  The foregoing  material may
contain  forward-looking  statements.  We caution  that such  statements  may be
subject to a number of uncertainties  and actual results could differ materially
and,  therefore,  readers should not place undue reliance on any forward-looking
statements. Ambanc and Hudson River do not undertake, and specifically disclaim,
any obligation to publicly release the results of any revisions that may be made
to any  forward-looking  statements to reflect the  occurrence of anticipated or
unanticipated events or circumstances after the date of such statements.

CONTACT:
Hudson River Bank & Trust Company
Mr. Carl A. Florio, President and CEO
(518) 828-4600

Ambanc Holding Co., Inc.
Mr. John M. Lisicki, President and CEO
(518) 842-7200



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