October 9, 2007

FOR IMMEDIATE RELEASE FOR FURTHER INFORMATION

Bethlehem, Pa. Contact Joseph T. Svetik, President

610-691-2233

First Star Bancorp, Inc. reported net income for the three months ended September 30, 2007 of $809,000, an increase of $127,000, or 18.62%, as compared to net income of $682,000 for the three months ended September 30, 2006. The increase in net income is primarily due to an increase in net interest income and the absence of a provision for loan losses during the three months ended September 30, 2007. Net interest income for the three months ended September 30, 2007 was $2,386,000, representing an increase of $112,000, or 4.93%, as compared to net interest income of $2,274,000 for the three months ended September 30, 2006. The increase in net interest income primarily resulted from a $133,000, or 2.24%, decrease in interest expense. The decrease in interest expense resulted from lower interest on borrowings. First Star Bancorp, Inc. had assets of $558.53 million at September 30, 2007 as compared to $555.21 million at June 30, 2007.

The company also reported that it expects to contribute approximately $600,000 to its employee stock ownership plan trust during the fiscal year ending June 30, 2008. The employee stock ownership plan trust will purchase a corresponding amount of the stock of the company in open market transactions from time to time during the fiscal year and utilize such company contributions and/or borrowed funds to effect such stock purchases.

First Star Bancorp, Inc. is the holding company for First Star Savings Bank which serves the Lehigh Valley through its main office in Bethlehem and branch offices in Alburtis, Allentown, Bath, Nazareth, Palmer Township and Wind Gap. Deposits at First Star are insured up to the legal maximum (generally, $250,000 per depositor) by the Federal Deposit Insurance Corporation (FDIC).

Forward Looking Statements/Safe Harbor Provision

This release contains “forward-looking statements” that are based on assumptions and may describe future plans, strategies and expectations of the Company. These forward-looking statements are generally identified by the use of the words “believe,” “expect,” “intend,” “anticipate,” “estimate,” “project” or similar expressions. The Company’s ability to predict results or the actual effect of future plans or strategies is inherently uncertain. Factors that could have a material adverse effect on the operations of the Company and its subsidiaries include, but are not limited to, changes in market interest rates, regional and national economic conditions, legislative and regulatory changes, monetary and fiscal policies of the United States government, including policies of the loan or investment portfolios, demand for loan products, deposit flows, competition, demand for financial services in the Company’s market area, changes in the real estate market values in the Company’s market area, ability to operate new branch offices profitably and changes in relevant accounting principles and guidelines. These risks and uncertainties should be considered in evaluating any forward-looking statements and undue reliance should not be placed on such statements. Except as required by applicable law or regulation, the Company does not undertake, and specifically disclaims any obligation, to release publicly the result of any revisions that may be made to any forward-looking statements to reflect events or circumstances after the date of the statements or to reflect the occurrence

FIRST STAR BANCORP, INC.

CONSOLIDATED FINANCIAL HIGHLIGHTS

(Unaudited)

(Dollars in thousands, except per share data)

Selected Financial Data:

	At Sept 30, 2007	At June 30, 2007
Total assets..................................................	$558,534	$555,348
Cash and cash equivalents.............................	1,695	3,576
Investment securities.....................................	148,426	145,444
Mortgage-backed securities ..........................	168,075	162,257
Loans receivable, net....................................	222,082	227,248
Deposits.......................................................	344,984	354,515
Borrowings...................................................	170,412	155,600
Stockholder’s equity......................................	39,088	38,625
Non-performing loans....................................	3,626	3,626
Non-performing assets..................................	$ -	$ -

Selected Operations Data:

	Three Months Ended Sept 30,
	2007	2006
Interest and dividend income.....	$8,201		$8,222
Interest expense ..........................	5,815		5,948
Net interest income.................	2,386		2,274
Provision for loan losses............	-		65
Net interest income after provision for loan losses.........	2,386		2,209
Other income.................................	236		221
Other expense...............................	1,464		1,456
Income before taxes.....................	1,158		974
Provision for income taxes..........	349		292
Net Income...............................	809		682
Earnings per share basic	$1.35		$1.14
Earnings per share diluted	$0.81		$0.69