DAVID GONCI
VICE PRESIDENT/
CHIEF FINANCIAL OFFICER

Vernon, CT - July 2, 1998

                           ALLIANCE BANCORP OF NEW ENGLAND, INC.
                         ANNOUNCES COMPLETION OF STOCK REPURCHASE

Alliance Bancorp of New England, Inc. announced that it has repurchased a 
block representing approximately 8.0% of its common stock from an 
institutional shareholder. The repurchase was a privately negotiated 
transaction totalling 200,599 shares and was completed at a price below the 
closing price on July 1, 1998.

Joseph Rossi, President and Chief Executive Officer said, "This action 
reflects the Board of Directors' belief that Alliance's stock is an attractive 
investment and that this purchase will enhance shareholder value. Also, 
through this purchase, the company acted to minimize potential market impact 
from this transaction, since the block of shares repurchased was well in 
excess of the average monthly volume in our stock."

The company anticipates the shares repurchased may eventually be used for 
funding of certain existing and future benefit plans.

Alliance Bancorp of New England, Inc. (AMEX:ANE) is the holding company for 
Tolland Bank, a Connecticut-chartered savings bank serving Tolland County and 
the surrounding communities.