FOR IMMEDIATE RELEASE

Contact:
Robert J. Brittain, President and CEO                                        
Tel:(518) 842-7200
Fax:(518) 842-7500
Harold A. Baylor, Jr.,  Vice Pres., CFO, and Treas.
Tel:(518) 842-7200
Fax:(518) 842-1688


              Ambanc Holding Co., Inc. Announces Earnings for the
                       First Quarter Ended March 31, 1998


Amsterdam, N.Y., May 14, 1998 -- Robert J. Brittain, President and CEO of Ambanc
Holding Co., Inc. (the Company),  the parent company of Amsterdam  Savings Bank,
FSB (the Bank),  today announced net income for the three months ended March 31,
1998.

Net income for the three months  ended March 31, 1998,  was $446,000 as compared
to $652,000  for the  corresponding  period of the  previous  year.  Diluted net
income per common  share for the 1998 quarter was $0.11 as compared to $0.16 for
the comparable 1997 quarter.

At March 31, 1998 total assets were $519.8  million  compared to total assets of
$510.4 million at December 31, 1997.  Stockholders' equity was $60.8 million, or
$14.27 per share, and $61.2 million, or $14.21 per share,  including  unreleased
ESOP shares and  unvested  restricted  Recognition  and  Retention  Plan ("RRP")
shares, at March 31, 1998 and December 31, 1997, respectively.

As announced on April 23, 1998, Ambanc Holding Co., Inc. has signed a definitive
agreement with AFSALA  Bancorp,  Inc. to merge AFSALA with and into Ambanc.  The
transaction  will be a  tax-free,  stock for stock  exchange  of 1.07  shares of
Ambanc common stock for each share of AFSALA common  stock.  Pending  regulatory
and shareholder  approval,  the merger is expected to be completed in the fourth
quarter of 1998.

Amsterdam  Savings Bank, FSB, founded in 1886, is a federally  chartered savings
bank that  conducts  its  business  primarily  in  Albany,  Fulton,  Montgomery,
Saratoga and Schenectady  counties in New York from twelve  locations in Latham,
Guilderland,  Gloversville,  Amsterdam,  Fort Plain, Clifton Park, Ballston Spa,
Saratoga Springs, Wilton and Schenectady.  The Bank's deposits are insured up to
the legal amount by the Federal Deposit Insurance Corporation (FDIC).

The  Company's  common stock is traded on the NASDAQ  National  Market under the
symbol "AHCI".


                                  
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