[HORIZON LOGO]                                                   EXHIBIT 99.1
515 Franklin Square, Michigan City, Indiana


Contact: James H. Foglesong
Chief Financial Officer
Phone: (219) 873-2608
Fax: (219) 874-9280
Date: August 6, 2002

FOR IMMEDIATE RELEASE

    HORIZON BANCORP ANNOUNCES CHANGES IN STOCK OPTION AND STOCK APPRECIATION
                                  RIGHTS PLANS


To better align management with the interests of our shareholders, substantially
all of the participants in the Company's Stock Option and Stock Appreciation
Rights Plans (including all members of Senior Management) have agreed to limit
future cash compensation they may be eligible to receive under the Plans.
Subject to the conditions discussed below, management believes compensation
expense will be significantly lower in future periods.

To explain this event in greater detail, participants under Horizon's Stock
Option and Stock Appreciation Rights Plans are given the choice of exercising
either stock options or stock appreciation rights (SARs). The exercise of one
SAR cancels a corresponding stock option, and vice versa. If SARs are exercised,
the participant receives cash equal to the difference between the exercise price
and the market price. Because all participants have exercised SARs for cash in
the past (instead of stock options), Horizon was required to establish a
liability on its balance sheet through a compensation charge to earnings as soon
as a Plan participant was eligible to exercise the SAR. Horizon was required to
treat SARs in this manner even though the participant may not exercise the SAR
until some time in the future or may choose to exercise the corresponding stock
option instead.

In order to limit this compensation expense, Horizon and substantially all of
the SAR holders voluntarily agreed to cap the value of their outstanding SARs at
$22 per share and cease any future vesting of SARs. As a result, Horizon will
not be required to recognize compensation expense related to these SAR holders
for any future increases in its stock price above $22. If, after that time, the
stock price falls below $22 per share, Horizon will generally receive a credit
for the decrease but will recognize future compensation expense again if the
stock price increases back to $22. This change to the treatment of SARs will not
affect the stock options related to the SARs. However, management believes that
the participants of the Plans will be more likely to exercise stock options
instead of SARs if the Company's stock price is above $22 per share and also
firmly believes increased stock ownership by management better aligns management
and shareholder interests.

The compensation expense related to SARs for the year ended December 31, 2001
and the first six months of 2002 was $1.013 million and $623,000 respectively.
Basic earnings per share for the year ended December 31, 2001 would have
increased by $.31 to $2.39 per share, while basic earnings per share for the six
months ending June 30, 2002 would have increased by $.19 to $1.40 per share








without the SARs compensation expense. At June 30, 2002, the accrued liability
on Horizon's balance sheet related to SARs was $1.339 million. Although the
exact amount of future compensation expense reduction cannot be predicted
because it is based on the stock's market price, the vesting schedule of the
SARs, and potential exercise of SARs by participants, management believes SAR
compensation expense will be significantly lower in future periods.

Horizon Bancorp is a locally owned, independent, bank holding company serving
the Northwestern Indiana/Southwestern Michigan area. It offers banking,
insurance, investment and trust services from offices located in Michigan City,
LaPorte, Wanatah, Chesterton, Portage, Valparaiso and Merrillville, Indiana, and
provides mortgage-banking services throughout the Midwest. Horizon Bancorp may
be reached on the World Wide Web at www.accesshorizon.com. Its common stock is
traded on the NASDAQ Small Cap Market under the symbol HBNC.

Statements in this press release which express "belief," "intention,"
"expectation," and similar expressions, identify forward-looking statements.
Such forward-looking statements are based on the beliefs of the Company's
management, as well as assumptions made by, and information currently available
to, such management. Such statements are inherently uncertain and there can be
no assurance that the underlying assumptions will prove to be valid. Actual
results could differ materially from those contemplated by the forward-looking
statements. Any forward-looking statements in this release are made pursuant to
the safe harbor provisions of the Private Securities Litigation Reform Act of
1995.


Contact:          Horizon Bancorp
                  James H. Foglesong
                  Chief Financial Officer
                  (219) 873 - 2608
                  Fax: (219) 874 -9280


























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