EXHIBIT 99.1

                     Gouverneur Bancorp Announces 2006 Third
                         Quarter and Nine Months Results

Gouverneur, New York, August 1, 2006: Gouverneur Bancorp, Inc. (AMEX: GOV) (the
"Company") and its subsidiary, Gouverneur Savings and Loan Association (the
"Bank"), today announced the results for the third quarter and nine months ended
June 30, 2006.

For the three months ended June 30, 2006, the Company reported net income of
$209,000, or $0.09 per diluted share, representing a decrease of $37,000, or
15.0% over last year's net income of $246,000, or $0.11 per diluted share. The
annualized return on average assets and average equity for the three months
ended June 30, 2006 was 0.67% and 4.33% respectively, compared to 0.87% and
5.35% for the three months ended June 30, 2005.

For the nine months ended June 30, 2006, the Company reported net income of
$890,000, or $0.39 per diluted share, representing an increase of $154,000, or
20.9% over last year's net income of $736,000, or $0.33 per diluted share. The
annualized return on average assets and average equity for the nine months ended
June 30, 2006 was 0.96% and 6.22% respectively, compared to 0.89% and 5.37% for
the linked period last year.

Since September 30, 2005, total assets grew $5.3 million, or 4.3%, from $122.5
million to $127.8 million at June 30, 2006, while net loans increased $5.3
million, or 5.5%, from $96.7 million to $102.0 million over the same period.

Deposits increased $10.2 million, or 15.9%, from $64.0 million at September 30,
2005 to $74.2 million at June 30, 2006. Brokered CDs accounted for $6.9 million
of the increase in deposits. Advances from the Federal Home Loan Bank of New
York ("FHLB") decreased from $36.8 million at September 30, 2005 to $31.6
million at June 30, 2006 as brokered CDs were used to repay borrowings.

Shareholders' equity was $19.4 million at June 30, 2006, an increase of 3.7%
over the September 30, 2005 balance of $18.7 million. The book value of
Gouverneur Bancorp, Inc. was $8.48 per common share based on 2,292,084 shares
outstanding at June 30, 2006. The company paid a semi-annual cash dividend of
$0.15 per share to public shareholders on March 31, 2006. Cambray Mutual Holding
Company, Gouverneur Bancorp Inc.'s parent mutual holding company holds 57.2% of
the Company's issued and outstanding stock, waived its right to receive that
dividend.

Commenting on the year's results, Mr. Richard Bennett, President and Chief
Executive Officer said, "We have seen a significant decrease in interest rate
spread, the difference between the average rate we earn on our interest-earning
assets and the cost of our interest-bearing liabilities, from 3.82% for the
first nine months of last year to 3.19% for the same period this year. The
Federal Reserve has raised short-term interest rates seventeen times since June
30, 2004 totaling 4.25%. The increases have not impacted long-term rates to the
same degree, which has flattened the yield curve so that the spread between
two-year and ten-year treasuries is only 20 basis points. Since our deposit and
borrowing costs are directly tied to short-term rates, our cost of funds has
increased more rapidly than mortgage rates tied to the longer end of the
interest rate curve. Our interest rate spread will continue to shrink over the
coming months if this trend continues."

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Mr. Bennett continued, "We have adjusted our mortgage and other loan rates
higher, but it will take time for the changes to affect the spread. In the
meantime, we must continue to improve our non-interest income and control our
expenses. Loan growth has slowed in recent months as a result of uncertainty in
the strength of the economy, interest rates and inflationary trends. Meanwhile,
the Federal Reserve must determine when and if to pause rate increases."

The Company, which is headquartered in Gouverneur, New York, is the holding
company for Gouverneur Savings and Loan Association. Founded in 1892, the Bank
is a federally chartered savings and loan association offering a variety of
banking products and services to individuals and businesses in its primary
market area in southern St. Lawrence and northern Lewis and Jefferson Counties
in New York State.

Statements in this news release contain forward-looking statements as that term
is defined in the Private Securities Litigation Reform Act of 1995. These
statements are based on the beliefs of management as well as assumptions made
using information currently available to management. Since these statements
reflect the views of management concerning future events, these statements
involve risks, uncertainties and assumptions. These risks and uncertainties
include among others, the impact of changes in market interest rates and general
economic conditions, changes in government regulations, changes in accounting
principles and the quality or composition of the loan and investment portfolios.
Therefore, actual future results may differ significantly from results discussed
in the forward-looking statements due to a number of factors, which include, but
are not limited to, factors discussed in the documents filed by the Company with
the Securities and Exchange Commission from time to time.

For more information, contact Robert J. Twyman, Vice President and Chief
Financial Officer at (315) 287-2600.


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