EXHIBIT 99.1

                       PRESS RELEASE DATED AUGUST 11, 1998







                             AMSTERDAM FEDERAL BANK

For Immediate Release

For further information contact:

         AMBANC:           Bud Barnett, President             (518) 842-7200
         AFSALA:           John M. Lisicki, President,
                           Chairman of the Board
                           and Chief Executive  Officer       (518) 842-5700

               AMBANC AND AFSALA ANNOUNCE SETTLEMENT WITH HOLTZMAN

Amsterdam,  NY - August 11, 1998 Ambanc  Holding  co.,  Inc.  (Nasdaq  AHCI) and
AFSALA  Bancorp,  Inc.  (Nasdaq AFED)  announced today that they have reached an
agreement with Seymour Holtzman, a stockholder of both companies,  regarding the
pending merger of the two companies.

Mr Holtzman has agreed to drop all litigation  against Ambanc,  refrain from any
future litigation until at least January 1, 2000, fully support and vote for the
pending merger of Ambanc and AFSALA and vote for Ambanc's  nominees for director
and avoid becoming  involved with any other hostile action at the annual meeting
of Ambanc stockholders to be held in 1999.

In return,  Ambanc has agreed to retain Sandler,  O'Neill and Partners,  LP, its
regular investment banker, to seek ways to maximize  shareholder value following
completion  of the  merger,  including  the  possible  merger  of  the  combined
companies  with a third  party.  If  Ambanc  has not  entered  into a merger  or
acquisition agreement with a third party acquirer on or before April 1, 1999, or
a merger or acquisition is not consummated,  Ambanc has agreed to appoint to the
Ambanc board two persons  from a list of at least four  persons  selected by Mr.
Holtzman.  Finally,  Ambanc and AFSALA have  agreed to  reimburse  Mr.  Holtzman
$80,000 for a portion of his expenses incurred in the litigation with Ambanc and
his actions with respect to the merger.

Lauren T. Barnett,  acting President of Ambanc,  stated: "We are very pleased to
have this expensive  litigation behind us and to be working with Mr. Holtzman in
a cooperative  fashion for the benefit of all the stockholders.  We believe that
working together,  and with the anticipated  benefits of AFSALA becoming part of
our company and bringing with its superb management  talent in John Lisicki,  we
can maximize the value of our shareholders' investment."

John M. Lisicki, President, Chief Executive Officer and Chairman of the Board of
AFSALA  stated:  "With this action today we can focus on achieving the synergies
and cost savings  that make our pending  merger with Ambanc so  attractive.  Our
focus will be on achieving the best possible results for the shareholders of the
combined institutions and we look forward to working with Mr. Holtzman in a very
constructive and positive way."

The  special  meetings of the  shareholders  of Ambanc and AFSALA will beheld on
September 1 and September 3, respectively. Closing is expected to occur early in
the fourth quarter.