FOR IMMEDIATE RELEASE


Contacts:
John M. Lisicki, President and CEO
Tel: (518) 842-5700


         Ambanc Holding Co., Inc. and AFSALA Bancorp, Inc. Complete Merger

     November 18, 1998  (Amsterdam,  NY) - John M. Lisicki,  President and Chief
Executive Officer of Ambanc Holding Co., Inc. (NASDAQ:  AHCI), announced that on
November  16,  1998,  Ambanc  completed  its merger  with AFSALA  Bancorp,  Inc.
(NASDAQ: AFED).

     As part of the merger,  Amsterdam Federal Bank, a subsidiary of AFSALA, and
Amsterdam Savings Bank, a subsidiary of Ambanc, were also merged and now operate
as one bank  under  the  name  Mohawk  Community  Bank,  with  total  assets  of
approximately $700 million.  Mohawk Community Bank will also have total deposits
of  approximately  $460  million  and serve  customers  in 18  upstate  New York
offices, located in Montgomery,  Fulton,  Schenectady,  Saratoga, Albany, Otsego
and Chenango counties.

     On October 27, 1998,  the Office of Thrift  Supervision  (OTS) approved the
merger  between  AFSALA  and  Ambanc,   along  with  their   subsidiaries.   The
shareholders of each company approved the merger in September, 1998.

     Upon  consummation of the merger,  each outstanding  share of AFSALA common
stock will be converted into 1.07 shares of Ambanc common stock.

     Mr. Lisicki said "I am pleased that the merger has been  completed,  and we
may now move aggressively forward to combine the products,  services,  operating
systems  and staff of the two  companies."  He added "I am pleased to assume the
role of President  and Chief  Executive  Officer of Ambanc and Mohawk  Community
Bank and look forward to working with our excellent team of executives and staff
in taking on the  remaining  challenges  of the  merger.  We will  continue  the
traditions of hometown  banking,  customer service and superior banking products
in the communities we serve."


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