Exhibit 99.1


                                  NEWS RELEASE

BW Account Number:  1079001
Date:           August 17, 2005     11:00 a.m. E.S.T.
Contact:        James L. Saner, Sr., President and CEO
                MainSource Financial Group, Inc.  812-663-0157

                                               [MainSource Financial Group Logo]

                         Third Quarter Dividend Declared
                    MainSource Financial Group - NASDAQ, MSFG

Greensburg,  Indiana (NASDAQ: MSFG) - MainSource Financial Group, Inc. announced
today that its Board of Directors  approved the  declaration  of a third quarter
common  dividend of $.13 per share at its August 15, 2005 meeting.  The dividend
is  payable  on  September  15,  2005 to  common  shareholders  of  record as of
September 1, 2005.  The dividend  represents a 9.2%  increase  over the dividend
paid to  shareholders  in the  third  quarter  last  year.  This  is  MainSource
Financial Group's sixtieth consecutive quarterly cash dividend.

MainSource  Financial  Group,  Inc.,  headquartered in Greensburg,  Indiana,  is
listed on the  NASDAQ  National  Market  (under  the  symbol:  "MSFG")  and is a
community-focused,  financial holding company with assets of approximately  $1.5
billion.  The Company operates 54 offices in 22 Indiana counties and six offices
in three Illinois  counties through its three banking  subsidiaries,  MainSource
Bank,  Greensburg,   Indiana;   Peoples  Trust  Company,  Linton,  Indiana;  and
MainSource  Bank  of  Illinois,  Kankakee,  Illinois.  Through  its  non-banking
subsidiaries,  MainSource  Insurance LLC,  MainSource  Title LLC, and MainSource
Mortgage LLC, the Company  provides various related  financial  services through
the Company's banking affiliates.

Forward-Looking Statements

Except for historical information contained herein, the discussion in this press
release may include  certain  forward-looking  statements  based upon management
expectations.  Factors  which  could cause  future  results to differ from these
expectations include the following: general economic conditions; legislative and
regulatory initiatives;  monetary and fiscal policies of the federal government;
deposit flows;  the costs of funds;  general market rates of interest;  interest
rates on competing investments;  demand for loan products;  demand for financial
services;  changes in  accounting  policies  or  guidelines;  and changes in the
quality or composition of the Company's loan and investment portfolios.

The forward-looking statements included in the press release relating to certain
matters  involve  risks  and  uncertainties,   including  anticipated  financial
performance,  business  prospects,  and other  similar  matters,  which  reflect
management's best judgment based on factors currently known.  Actual results and
experience  could  differ  materially  from  the  anticipated  results  or other
expectations expressed in the Company's  forward-looking  statements as a result
of a number of factors,  including  but not limited to,  those  discussed in the
press release.

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 MainSource Financial Group, 201 N. Broadway, P.O. Box 87, Greensburg, IN 47240