The Elmira Savings Bank, FSB Announces Private Placement of Common Stock

The Bank anticipates total gross cash proceeds from the transactions inthe amount of $6,034,896. The Bank intends to use the net proceeds receivedin this offering, together with the proceeds of a private placement of $10million worth of newly issued shares of preferred stock, to support thepurchase of three bank branches in Tompkins County, New York and one bankbranch in Cayuga County, New York from First Niagara Bank, first publiclyannounced on August 10, 2007. Such proceeds will also be used for nonspecificcorporate purposes, including the making of consumer, mortgage, and businessloans in the Bank's market area and other investments.

The Elmira Savings Bank, FSB, with $390.0 million in total assets, isinsured by the Federal Deposit Insurance Corporation and is a federallychartered savings bank with five offices in Chemung County, New York, oneoffice in Steuben County, New York, one office in Tioga County, Pennsylvania,and a loan center in Tompkins County, New York.

Except for the historical information contained herein, the mattersdiscussed in this news release are or contain forward-looking statements thatinvolve certain risks and uncertainties, including the timely availability andacceptance of the Bank's products, the impact of competitive products andpricing, the management of growth, and other risks detailed from time to timein the Bank's publicly available regulatory reports.