EXHIBIT 99






                                  PRESS RELEASE


Steelton Bancorp, Inc.              Contact:          Mr. James S. Nelson
51 South Front Street                                 Vice President
Steelton, Pennsylvania                                Investor Relations
                                                      (717) 939-1966




                              For Immediate Release
                                  July 9, 1999


                        STEELTON BANCORP, INC. ANNOUNCES
                          COMPLETION OF STOCK OFFERING

         Steelton,  Pennsylvania  - July 9, 1999 -- Harold  Stremmel,  Executive
Vice President and Chief Executive Officer, Mechanics Savings Bank (the "Bank"),
announced  today that the Bank  completed its mutual to stock  conversion at the
close of  business  on July 8,  1999.  In  connection  with the  reorganization,
Steelton  Bancorp,  Inc.,  the new holding  company for the Bank,  sold  385,000
shares of common stock in a  subscription  stock  offering for gross proceeds of
$3.85 million.

         "We were  pleased  with the amount of  investor  interest  in  Steelton
stock"  said Mr.  Stremmel.  "Steelton  Bancorp is excited  about being a public
company and it looks forward to continuing  the Bank's  service to our customers
and our community."

         The Bank,  formerly  known as  Mechanics  Savings  and Loan,  FSA, is a
federally  chartered  savings bank and  conducts  its business  through its main
office  in  Steelton,   and  its  branch  office  in  Lower  Swatara   Township,
Pennsylvania.  At March 31, 1999,  the Bank had total  assets of $42.7  million,
total liabilities of $39.0 million and retained earnings of $3.7 million.

         Capital Resources,  Inc., Washington,  D.C. assisted in the conversion.
The  Company's  common  stock  began  trading  on  Friday,  July 9,  1999 on the
Electronic Bulletin Board under the symbol "SELO."