FOR IMMEDIATE RELEASE

Contact:
Marvin R. LeRoy, Jr., Director
Tel:(518) 438-2217



              Ambanc Holding Co., Inc. Announces Retirement of its
                      President and Chief Executive Officer

     Amsterdam,  N.Y.,  (June 30, 1998) The Board of Directors of Ambanc Holding
Co., Inc., (Nasdaq Stock Market "AHCI") announced today the retirement of Robert
J. Brittain, its President and Chief Executive Officer. Mr. Brittain will remain
as a director of Ambanc Holding Co., Inc. and Amsterdam Savings Bank, FSB.

     Lauren T. Barnett,  an Ambanc  director  with over 30 years of  experience,
will  become  the  interim  President  and Chief  Executive  Officer of both the
holding  company and its savings bank  subsidiary,  Amsterdam  Savings Bank, FSB
until the  completion of the pending  merger with AFSALA  Bancorp,  Inc. At that
time John M. Lisicki,  President  and Chief  Executive  Officer of AFSALA,  will
become President and Chief Executive  Officer of the resulting bank. Mr. Lisicki
will become the  President and Chief  Executive  Officer of Ambanc no later than
January 1, 1999.

     Mr. Barnett stated "As a result of the work of the merger  transition  team
involving Mr. Brittain,  Mr. Lisicki and their respective  executive  staffs, we
believe we have reached the stage where Mr. Brittain can take early  retirement.
The Board  appreciated  his over  twenty  years of  service  to the bank and the
Company,  and is looking forward to a smooth transition to the leadership of Mr.
Lisicki following completion of the merger."

     Ambanc  had  assets of $519.8  million,  deposits  of  $324.4  million  and
shareholder's  equity of $60.8  million at March 31,  1998.  Ambanc  operates 12
savings bank offices, including five supermarket offices.



                                  
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