PRESS RELEASE

                                                 Contact:    Joseph Kliminski
                                                             President
                                                             ASB Holding Company
                                                             (973) 748-3600
ASB Holding Company
American Savings Bank of NJ
365 Broad Street
Bloomfield, NJ  07003-2798

OTC Electronic Bulletin Board "ASBH"

                                                           For Immediate Release
                                                           November 16, 2004

                               ASB HOLDING COMPANY
              ANNOUNCES IMPROVED ANNUAL EARNINGS AND CASH DIVIDEND

         Bloomfield,  New  Jersey --  November  16,  2004 --  Joseph  Kliminski,
President  of ASB  Holding  Company  (the  "Company"),  the  holding  company of
American  Savings  Bank of NJ (the  "Bank") and ASB Holding  Company,  announced
today that the Company's Board of Directors has declared a special cash dividend
of $0.75 per share to  stockholders  of record as of December 6, 2004 payable on
or about December 20, 2004. Seventy percent of the stock of the Company is owned
by American Savings,  MHC, a Federal mutual holding company (the "MHC"). This is
the Company's  first  dividend  since  completing its minority stock offering on
October 3, 2003.

         Mr. Kliminski indicated that the cash dividend is being paid to provide
a return to stockholders,  after considering the equity and profitability of the
Company  and the Bank.  The payment of future  dividends  will be subject to the
Board's  periodic  review of the  financial  condition,  earnings,  and  capital
requirements of the Company and the Bank.

         The Company also  announced  earnings of $2,162,000  for the year ended
September  30,  2004,  up $759,000 or 54.1% from  $1,403,000  for the year ended
September  30,  2003.  At September  30, 2004,  the Company had total assets and
stockholders'   equity  of  approximately  $424.9  million  and  $39.3  million,
respectively.   At  September  30,  2004  the  Company  had  total  deposits  of
approximately  $322.7 million and $309.0 million of loans, net. American Savings
Bank is a federally  chartered  stock  savings bank which  conducts its business
from its main office in  Bloomfield,  New Jersey and one branch  office in Cedar
Grove,  New Jersey.  The  Company's  common  stock is traded on the OTC Bulletin
Board under the symbol "ASBH."

The  foregoing  material  contains  forward-looking  statements  concerning  the
financial  condition,  results of  operations  and business of the  Company.  We
caution that such statements are 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. The Company does not undertake, and
specifically  disclaims,  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.