EXHIBIT 99.1






                        [AFSALA BANCORP, INC. LETTERHEAD]

FOR IMMEDIATE RELEASE                  FOR FURTHER INFORMATION CONTACT:
- ---------------------                  --------------------------------
November 28, 1997                      John M. Lisicki
                                       President and Chief Executive Officer
                                       (518) 842-5700

          AFSALA BANCORP, INC. ANNOUNCES COMPLETION OF STOCK REPURCHASE
                    AND COMMENCEMENT OF ADDITIONAL REPURCHASE

         Amsterdam,   New  York  --  AFSALA  Bancorp,   Inc.   (Nasdaq  National
Market-AFED),  the parent  holding  company of  Amsterdam  Federal  Bank,  today
announced that it had completed the repurchase of 66,310 shares of the Company's
outstanding  shares of common stock. The company  currently has 1,388,440 shares
of common stock outstanding.

         The Company also  announced  today that it has  received the  necessary
regulatory  and Board  approval to initiate a  repurchase  of up to 5% or 69,422
shares of the  Company's  common stock to be  purchased in the open market.  Mr.
John M. Lisicki, President and Chief Executive Officer of the Company, indicated
that the repurchase plan could mitigate some of the potentially dilutive effects
of the  Company's  stock  benefit  plans and would also be available for general
corporate  use. The  repurchases  will be made from time to time in  open-market
transactions, subject to the availability and price of the Company's stock.

         The Company  became the holding  company for the Bank on September  30,
1996, following its initial public offering at the time of the conversion of the
Bank from the mutual to stock form of ownership.

         Amsterdam  Federal  Bank is a  federally-chartered  savings  bank which
conducts its business in Fulton,  Montgomery and Otsego Counties, New York, from
four locations in Amsterdam,  Gloversville and Oneonta.  The Bank's deposits are
insured  up to the  maximum  legal  amount  by  the  Federal  Deposit  Insurance
Corporation  (FDIC).  The  Company's  common stock is traded on the NASDAQ Stock
Market/National Market System under the symbol "AFED."