IBT BANCORP, INC.
NEWS RELEASE
JUNE 16, 2004

F O R  I M M E D I A T E  R E L E A S E
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FOR FURTHER INFORMATION
CONTACT:                                    SHELI L. FYOCK
                                            ASSISTANT VICE PRESIDENT/MARKETING
                                            309 MAIN STREET
                                            IRWIN, PENNSYLVANIA 15642
                                            PHONE: 724-978-2705
                                            EMAIL:  SFYOCK@IRWINBANK.COM
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               IBT BANCORP, INC. ANNOUNCES RETIREMENT OF DIRECTOR

Irwin, Pennsylvania,  June 16, 2004, (AMEX:IRW):  Edwin A. Paulone announced his
intention to retire from the Board of Directors of IBT Bancorp,  Inc.  effective
September  22, 2004.  Mr.  Paulone has served as a director of the Company since
1969.

IBT  Bancorp,  Inc.  is  a  Pennsylvania  corporation  headquartered  in  Irwin,
Pennsylvania,  which  provides a full  range of  commercial  and retail  banking
services  through  its  wholly  owned  banking  subsidiary,  Irwin  Bank & Trust
Company.  The bank operates through its main office,  six branch offices, a loan
center,  and a trust office, as well as through five supermarket  branches under
the name "Irwin Bank Extra" located in the Pennsylvania counties of Westmoreland
and Allegheny. The Bank's website is www.myirwinbank.com.
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The Company's  common stock is traded on the American  Stock  Exchange under the
symbol "IRW".

Statements  contained in this news release,  which are not historical facts, are
forward-looking  statements  as that term is defined in the  Private  Securities
Litigation  Reform Act of 1995. Such  forward-looking  statements are subject to
risks and  uncertainties  which could cause actual results to differ  materially
from those currently anticipated due to a number of factors,  which include, but
are not limited to, factors discussed in documents filed by the Company with the
Securities  and  Exchange  Commission  from time to time.  The Company  does not
undertake to update any  forward-looking  statements,  whether  written or oral,
that may be made from time to time by or on behalf of the Company.