FOR IMMEDIATE RELEASE: WEDNESDAY, OCTOBER 30, 1996

NEW YORK -- The Federal Reserve Bank of New York Wednesday announced that it has approved the application by Iroquois Bancorp, Inc., Auburn, N.Y., to become a bank holding company with respect to Cayuga Savings Bank, Auburn, N.Y. ("CSB"), and Cayuga Bank, Auburn, New York ("Cayuga Bank"). Iroquois contemplates that CSB will be merged with and into Cayuga Bank.

The Reserve Bank has also approved the notice by Iroquois to retain The Homestead Savings (FA), Utica, N.Y. ("Homestead"); to engage in insurance activities through CSB's subsidiary, Cayuga Financial Services, Inc. ("CFS") and Homestead's subsidiary, H.S. Services Corporation; to engage in securities brokerage activities through CFS and to engage in investment and financial advisory services through CFS.

According to standard procedure, the proposal cannot be completed for 15 days.

The Reserve Bank acted under authority delegated by the Board of Governors of the Federal Reserve System.