PRESS RELEASE

FOR IMMEDIATE RELEASE
Contact:  Charles G. Urtin,
President / CEO
Telephone:  724-863-3100
www.irwinbank.com
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                          IBT Bancorp, Inc. (AMEX: IRW)
 Announces Fourth Quarter Charge on Fannie Mae and Freddie Mac Preferred Stock

IRWIN,  PENNSYLVANIA,  FEBRUARY 17, 2005;  IBT Bancorp,  Inc.  (AMEX:  IRW), the
holding  company  of  Irwin  Bank &  Trust  Company,  today  announced  that  in
connection with the preparation of its financial  statements for the quarter and
year ended  December 31, 2004, it  determined to take a non-cash  after tax $2.4
million or $.80 per fully  diluted  share  charge to  earnings as a result of an
other  than  temporary  impairment  in the value of  certain  Federal  Home Loan
Mortgage  Corporation  (Freddie Mac) and Federal National  Mortgage  Corporation
(Fannie  Mae)  adjustable  rate  preferred  stocks  it holds  in its  investment
portfolio.

President and CEO Charles G. Urtin stated, "We do not believe this impairment is
related to credit quality but rather to interest rates. The recent multi-billion
dollar  issuance of Fannie Mae fixed-rate  preferred  stock with a substantially
different market structure and the ongoing negative publicity  concerning Fannie
Mae and  Freddie  Mac  have  negatively  impacted  the  market  value  of  these
investments. While these securities continue to carry investment grades, current
accounting rules and SEC guidance require us to make this determination."

Irwin Bank and Trust Company is a state chartered  commercial bank that conducts
its business from its main office located in Irwin,  Pennsylvania,  seven branch
offices, a loan center, a trust department and five supermarket branches located
in the Pennsylvania counties of Westmoreland and Allegheny.  The Bank's deposits
are insured up to the maximum  legal  amount by the  Federal  Deposit  Insurance
Corporation. The Company's common stock is traded on the American Stock Exchange
under the symbol "IRW". For more information please visit www.myirwinbank.com
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Statements  contained in this news release  which are not  historical  facts are
forward-looking  statements  as the 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.