American Bank Reorganizes Into Holding Company Structure

CONTACT: Mark W. Jaindl, President and Chief Executive Officer
Allentown, PA, Wednesday, January 02, 2002

American Bank, a Pennsylvania-chartered commercial bank (OTCBB:AMBK), announced the completion of its reorganization into the holding company structure, pursuant to an Amended Agreement and Plan of Reorganization that was adopted by shareholders on April 17, 2001. In accordance with the Plan, American Bank became the wholly-owned subsidiary of American Bank Incorporated, a Pennsylvania corporation. Upon completion of the reorganization: (1) the outstanding shares of common stock of American Bank, par value $2.50 per share, became, by operation of law, common stock of American Bank Incorporated, par value $.10 per share, on a one-for-one basis, and (2) the outstanding warrants of American Bank, became, by operation of law, warrants to purchase common stock of American Bank Incorporated. The common stock and warrants of American Bank Incorporated are traded under the symbols AMBK and AMBKW, respectively, on the Over the Counter Bulletin Board.

American Bank Incorporated is required to register the common stock underlying the warrants with the Securities and Exchange Commission (the "SEC") under the Securities Act of 1933. Although trading in the warrants will continue on the OTC Bulletin Board, the warrants cannot be exercised until a registration statement is filed and declared effective by the SEC. American Bank Incorporated expects this to occur in the first calendar quarter of 2002.

About American Bank
American Bank, a locally-owned community bank based in Allentown, PA, offers a complete selection of banking products and services to suit the needs of consumers and businesses and includes checking, money market, savings, certificates of deposit, consumer and commercial loans and Visa credit cards. American Bank is dedicated to providing customers superior, personalized customer service while offering some of the best loan and deposit rates available and as a result, has received the Bankrate.com® Top Tier award for consistently offering annual percentage yields (APYs) that were among the highest reported. Their online banking service, pcbanker, allows customers to bank conveniently and delivers a full range of real-time online banking services free of charge including online bill payment and presentment, ACH Direct, transfers between accounts, transaction history, check images and e-Statements. American Bank is FDIC insured.

American Bank Online and pcbanker.com are registered marks for the Internet financial services provided by American Bank, a state-chartered, FDIC insured full-service financial institution serving customers throughout the United States. American Bank is a member of the Federal Reserve System.

"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995:
Statements in this press release regarding American Bank’s business which are not historical facts, including expectations regarding future financial results, are "forward-looking statements" that involve risks and uncertainties which could cause actual results to differ materially from such statements.

Forward-Looking Statements
Certain statements contained herein are not based on historical facts and are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such forward-looking statements may be identified by reference to a future period or periods, or by the use of forward-looking terminology, such as "may," "will," "believe," "expect," "estimate," "anticipate," "continue," or similar terms or variations on those terms, or the negative of those terms. Forward-looking statements are subject to numerous risks and uncertainties, including, but not limited to, those related to the economic environment, particularly in the market areas in which the Bank operates, competitive products and pricing, fiscal and monetary policies of the U.S. Government, changes in government regulations affecting financial institutions, including regulatory fees and capital requirements, changes in prevailing interest rates, risks associated with the conduct of the Bank's business over the internet, credit risk management, asset-liability management, the financial and securities markets and the availability of and costs associated with sources of liquidity.

The Bank wishes to caution readers not to place undue reliance on any such forward-looking statements, which speak only as of the date made. The Bank wishes to advise readers that the factors listed above could affect the Bank's financial performance and could cause the Bank's actual results for future periods to differ materially from any opinions or statements expressed with respect to future periods in any current statements. The Bank does not undertake and specifically declines any obligation to publicly release the result of any revisions that may be made to any forward-looking statements to reflect events or circumstances after the date of such statements or to reflect the occurrence of anticipated or unanticipated events.

For additional information, please contact Mark W. Jaindl, President and Chief Executive Officer.