FOR IMMEDIATE RELEASE



Contact:
Marvin R. LeRoy, Jr., Director                                   
Tel:(518) 438-2217
Harold A. Baylor, Jr.,  Vice Pres., CFO, and Treas.
Tel:(518) 842-7200
Fax:(518) 842-1688



                  Ambanc Holding Co., Inc. Announces Freeze on
                        Executive Managers' Compensation

     Amsterdam,  N.Y.  (July 3, 1998) Ambanc Holding Co., Inc.  (NASDAQ:  AHCI),
recently announced that the compensation of its board members would be frozen at
their  current  levels.  The  Company's  board of directors  has also frozen the
compensation of executive  managers of the Company's bank subsidiary,  Amsterdam
Savings  Bank,  FSB.  The freeze on the  compensation  of the  Bank's  executive
managers,  like the freeze on the compensation of the Company's directors,  will
remain in  effect  until  the  Company  shows  improvement  in its  consolidated
operating results.

     The changes are expected to be put into effect during the fourth quarter of
1998.

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