FOR IMMEDIATE RELEASE

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


      Ambanc Shareholders Vote To Approve Merger With AFSALA Bancorp, Inc.
     
     Amsterdam,  New York.  Ambanc Holding Co., Inc.  (Nasdaq AHCI), the holding
company for Amsterdam  Savings Bank,  FSB,  announced today that on September 1,
1998, Ambanc shareholders voted in favor of the merger of AFSALA Bancorp,  Inc.,
the holding company for Amsterdam Federal Bank, into Ambanc. AFSALA shareholders
are scheduled to vote on the merger on September 3, 1998. If AFSALA shareholders
approve the merger, closing is expected to occur early in the fourth quarter.

     The  transaction  is to be  accounted  for as a purchase and provides for a
tax-free,  stock for stock  exchange of 1.07 shares of Ambanc  common  stock for
each outstanding shares of AFSALA common stock.

     As of June 30,  1998,  Ambanc  reported  total  assets of  $565.4  million,
deposits of $321.7 million and  shareholder's  equity of $58.4  million.  Ambanc
currently operates 12 offices.  Upon completion of the merger,  Ambanc will have
approximately  $730.0  million in assets,  $465.0  million in  deposits,  and 18
offices.
                            

     
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