Press Release                 SIS Bancorp


               For Immediate Release

Date:  September 17, 1996          Contact:  Ms. Ting Chang, Vice President
                                             Investor Relations
                                             (413) 748-8271

SIS Bancorp Anticipates a $7.5 Million Non-Recurring Tax Related
Gain During the Third Quarter


SPRINGFIELD,  MA:  September  17, 1996;  5:00 P.M.,  SIS  Bancorp,  Inc., a bank
holding company for Springfield  Institution for Savings ("SIS Bank"),  (NASDAQ:
SISB)  announced  today that  based on its  preliminary  analysis  of the "Fresh
Start"  provisions of the recently  enacted Small Business Job Protection Act of
1996 it will recognize a one time gain of approximately  $2.8 million during the
third  quarter.  The Company also announced its plans to recognize the remainder
of its deferred tax asset during the third quarter.  The combined one time gains
will  approximate  $7.5 million or $1.37 per share fully diluted for the quarter
ended September 30, 1996. As a result of these actions,  the Company anticipates
being fully taxable for  financial  reporting  purposes  beginning in the fourth
quarter of 1996.

The Company also noted that present  limitations on beneficial  ownership of the
Company's  shares will continue in effect in accordance with their terms.  Under
the Company's  articles of organization,  no holder or any of its affiliates may
own more than 4.9% of the outstanding shares without prior approval of the Board
of Directors until February 7, 1998.

     Any  questions  concerning  this release may be directed to Ms. Ting Chang,
Vice President Investor Relations at (413) 748-8271.